Ways to Boost Your Credit Score Over the Holiday Season

Last Update: September 10, 2021 • Credit Report •

Do you know the importance of your credit score? Would you like to see how the holiday season adds value to your credit score? We will provide a guide on how festive seasons can boost your credit score. Remember, credit scores do not in any way affect your daily life, but ignoring them can cause serious financial problems. The truth is; credit scores are in desperate need of a high-tech overhaul, and the holidays associate with excessive partying, shopping, and festivals.

Pay Your Balances Every Month

First, it’s advisable to clear all your debts, if any, monthly to avoid massive deficits over the holiday. Remember, holiday anxieties push consumers to spend much to the extent of using their credit cards to clear the balances or acquire loans from friends. You can only empower your credit score by purchasing and repaying the expense monthly rather than adding debts for the same. The credit card balance increases when you don’t recover your card expenses in full and per month. Therefore, if unable to clear the balance, use your cash or personal savings to pay a significant amount. This will ensure that all your holiday expenses match your capability of making for the same every month. Clearing all the debt can boost your credit score and history, thus credit utilization ratio.

Be Accountable

During any festive season, you need to monitor your credit report by keeping an eye on it to confirm your ability to pay off. The habit of making impulse purchases can be reduced based on your emotions. You only need to become an authorized user since whatever you buy may be necessary but not as planned. Unplanned purchases weaken your credit score to the extent of digging into debts.

However, if you are not authorized on anyone’s credit card, visit any primary account holder and choose one with responsibilities (who can safeguard the credit account.) Sooner or later, they will register your name to become an authorizer. Afterward, the credit will reflect on your credit report as a holder. If you wonder how this adds to your credit score over the holiday, try one! You will notice that the responsible account holder has better soft skills and impacts on your credit score, meaning; your credit card balances are settled on time, thus boosting your credit score.

Use Credit Card Regularly

The more often you use your credit card, the faster creditors will update your report. When purchasing for your holiday season, remember to buy what you can afford. For instance, if you feel you want to come up with specific kitchenware and you don’t have any set-aside cash to purchase one, use your credit card as an option “B.” Start saving for it each month, and by the end of the day, you will have one.

During the holiday while shopping, people should be wise. One tip is to pay their expenses via their credit cards at least. However, if you would like to qualify for an installment loan this holiday, make your credit account “active.” By doing this, you will improve your credit score, ensuring no large balances to avoid destroying the debit-credit ratio.

Pay Your Bills on Time

Do you have problems clearing your debts late? Would you like to improve your payment history this festive season? If yes, arise! First, list down all the necessities you need over the holiday with an estimated amount. Use your credit card to pay for the expenses, considering you have to settle the bill on time. However, if you cannot resolve the amount, look for an extra job to cover your shame. Interestingly, the quicker you pay on time, the higher your credit score.

Request for a Credit Card Limit Increase

If you have problems extending payments with your credit card, make a step forward this festive season. Visit any credit card company and ask for a card limit increase. Be assured they will consider your request at the moment. Through this, you will improve your credit utilization ratio over the holiday. For instance, if you have a $900 credit limit and a $450 credit balance, your credit utilization ratio will be 50%. This means your credit score minimizes, but if your credit limit increases to about $1,800, your utilization ratio will lower to a significant percent, improving your credit score faster. However, spending much on your new credit card limit increases your credit ratio. Therefore, it’s advisable to purchase goods worth your capability, depending on your credit card limit.

Save Your Reward Points for Gift Cards

How do you feel about redeeming your reward points after a long struggle of paying for the purchases? The truth is. It’s hard to save regularly without regaining but sowing your rewards will be of great help. Some people save up their rewards points throughout the year to convert into gifts during the holiday. The idea may be tricky since redeeming one point is equivalent to one cent. However, with your rewards, you can get the best rates. You can regain your points and use them as cash back or for travel.

Open a New Card for Offers

If you are looking for ways to earn a few extra bucks with a side hustle, open up a new credit card that will introduce offers with additional rewards. By doing this, you will be able to take advantage of your holiday spending. Remember, a significant percentage of stalls have unavoidable commissions and discounts during the holidays. The suppliers set such offers to convince their customers to buy their products, though there may be a possibility that you hadn’t planned on the purchases. These discounts allow new cardholders to grab extra reward points, thus boosting their credit score.

In conclusion, always remember to carefully review your credit report to avoid account errors such as; wrong listed credit limit, an account belonging to someone else, and late payments (more than seven years). In such cases, talk to your lender to correct such errors on your credit report or even visit the Federal Trade Commission website (FTC) for the same.