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While a lot of potential homebuyers may think they are doing everything to maintain stellar credit in anticipation of buying a home, some may not realize that they could be putting their credit at risk as they begin their holiday shopping this year.

While many consumers may open store credit cards and other lines of credit to make their holiday shopping more manageable, those who are simultaneously touring open houses and applying for mortgages should be careful not to do so. Opening too many lines of credit and having a number of inquiries into credit history in a short period of time can cause a credit score to go down. Such a dip in credit rating can effectively prohibit potential homebuyers from getting the best mortgage rates—which are historically low right now.

Opening a new credit card can knock a credit score down by as much as 52 points. Furthermore, increasing a credit card balance can also harm a credit rating. An increase of $2,000 or more in credit card debt can cause as much as a 68 point drop in a borrower’s credit rating.

In order to maintain a stellar credit rating, people considering purchasing a home should take some simple steps during the holiday shopping season to maintain that score. So, potential homebuyers should be sure not to open any new lines of credit, or charge expensive items with a financing plan or increase credit limits prior to beginning their home search. Save the big gift buying for next year!

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