It is easy to splurge during the more festive seasons, but it is extremely important that you keep track of your expenses lest your credit score take a hit you’ll have a hard time recovering from. Here are a few practical tips to help keep your score nice and healthy over the holidays:
Set a budget. This is common sense, yes, but you would be surprised how easy it is to lose control when you are not monitoring your expenses. List down all the things you want to buy, list down all the financial obligations you have, strike a balance, create a budget and stick to it.
Grab a pre-holiday credit report. Availing of a free credit report just before the holiday seasons will give you a solid idea of how you stand even before the holiday spending come rolling around the corner. It will also set the bar for how your finances are, so all you need to do is maintain or surpass that bar.
Don’t fall for credit card deals. Most credit card deals are not deals at all – just overly-hyped sales pitches that always have a catch. If you find a deal that you really like, then make sure to read the fine print before committing yourself.
Keep debt under 50% of your limit. Accruing credit card debt is bad for your credit. But if you absolutely must expose yourself to debt, then at least keep it below 50% of the limit to minimize the damage to your score.