Using cash to shop during the holiday season can be tough, especially with the financial setbacks that many people have faced due to COVID-19. Whether you are renting a car, buying gifts, or paying for anything else, you will likely need to use a credit card at some point during this holiday season. If you want to be able to use your credit cards without having to worry about your card balances or credit score, then you should keep the following tips in mind…
Pay Your Bills on Time:
Your payment history accounts for 35% of your FICO credit score calculation. Therefore, it is always recommended to pay your bills in full and on time. Even if you can only pay the minimum balance, it is still good if you make that payment by the due date.
Check Your Credit Card Limits Before Shopping:
Before you make any big purchases during the holiday season, it is important to check all of your credit card limits to make sure that you do not spend too much. Exceeding your credit limits can negatively impact your credit score, so you should monitor your card balances regularly in order to prevent this from happening.
Take Advantage of Reward Programs:
During the holiday season, many credit card companies typically offer a lot of rewards. You should check your credit card accounts to see if you are eligible to get cash back or take advantage of any other reward programs.
Avoid Spending More than You Need:
One of the biggest ways to maintain a good credit score is to avoid spending more than you need. If you take advantage of tools to find great promotions and discount offers, you can save yourself a lot of money. If you’re worried that you will not be able to pay off your full balance, you should contact your credit card company and see if they will lower your interest rate.
Final Thoughts:
If you follow these tips, you will be on the right track to keeping your credit score safe during this holiday season.
If you are looking to start improving your credit, book a non-obligatory 30 minute appointment with us!
