The holiday season is a happy occasion of the year. These may also be some of the most expensive times of the year and result in increased credit card utilization. However, it shouldn’t follow that the credit rating should struggle. Users may enjoy the festive season and start the new year with their credit score in a decent frame possibly better than it was before—if you carefully budget your money, stick by a strategy, and keep an eye out for fraud.
Following are the ways to keep credit score safe during holidays:
Pay bills on time:
Holidays or not paying your credit card bills on time should be a rule you must always follow. Not only a missed or delayed payment sheds a bad light on your trustworthiness but it can also make you pay late payment charges on top of your balance. During the hectic holiday season, it is easy to forget to make a payment, but try setting a notification on your phone or calendar or utilize the auto-debit feature offered by the banks because even one missed payment can have an impact on your credit history. You need a track record of timely payments if you want to maintain a high credit rating.
Stick to a budget:
Almost every business offers unbelievable deals and discounts during the festive seasons and the fear of missing out gets to even the best of us. So, it is best to make a budget and stick to it, because even if credit cards let you make a payment without disturbing your wallet- it will all ultimately come back to you to pay the bills plus the interest.
Don’t get new credit cards:
Each credit card offers deals and benefits that are unique from the rest of the credit cards available in the market. Therefore, you might get tempted to get your hand on most of the credit cards in order to avail all the perks they provide, do not fall for them. Applying for a new credit card ends up in a hard inquiry that will affect your credit score.
Do not fall for scams:
Fraudsters are active throughout the year, but they intensify their attempts to defraud people during the Holiday season when they know that consumers will be busy and likely won’t pay too much attention. When you make purchases at gas stations, retail stores, or other locations, an illegal device records your data and PIN. Scammers can then exploit this information to commit fraud.
Keep tabs on your credit file:
It can be challenging to keep a track of your file during the holidays, but it is crucial. Spend even a half-hour carefully reviewing your credit report; this will enable you to spot any potentially fraudulent transactions. If you do discover anything suspicious, get in touch with your issuer right away.
Do not be impulsive:
It can be difficult to overlook so many wonderful offers that are right in front of you during the holiday season. However, you should always keep to a spending plan, establish a limit, and only buy things you truly need. Last but not least, resist the urge to buy everything you see on sale out of a “fear of missing out.” When individuals see enormous discounts on display, they want to buy anything and everything. Avoid doing this by keeping in mind that you will eventually have to pay it all back with additional interest.
It is easy to spend and spend when the holidays are near, with so many incredible deals and discounts the fear of missing out gets the better of us but staying disciplined is the real key that will help you save your credit score and even improve it over time. Most of the time people do not stick to a budget which ultimately lands them in a debt spiral and lowers their credit score.