How to protect your credit score this Christmas
It can be difficult at the best of times to keep up a good credit score and positive spending habits. Sometimes the money is just not there for the things you need, and when Christmas is thrown into the mix it becomes that little bit more difficult.
There’s no need to worry though as we have some useful tips to keep you on track throughout the holiday period, even when those extra seasonal expenses get in the way. Hopefully meaning you won’t have affected your credit score by the end of the festive season.
1. Overspending
This is extremely easy to do over the Christmas period, it’s a time you want to spoil your loved ones and treat them to something they deserve. Start out with a budget to help you not overspend, and maybe itemise it by each person you need to buy for. This will help you set out out a price in mind for each person and gift.
Better still, if you create a budget a bit earlier than you need to, then that might allow you a little bit of extra time to save for the budget you’ve set in place.
By reducing overspending this can not only protect your credit score, but may also improve your credit score.
2. Direct Debits
Christmas is a busy time for everyone, and if you are used to paying your bills manually, then it might be worth considering setting up Direct Debits for these payments, so they happen automatically. That way you don’t have to think about them, and they’ll just come straight out of your account.
If you don’t pay for things when they are due to come out, then this will affect negatively on your credit score.
3. Think about it
Don’t just buy things because they seem like a good deal at the time, Christmas time is full of spending and not just on gifts for others. There are Black Friday sales, Boxing Day sales, and just general after Christmas sales that sometimes can seem a little too good to be true.
Don’t get sucked into buying things that affect your credit score, so anything that requires you to take out credit. For example, a new sofa or bed. This could lead you into paying interest on things and you paying high APRs. Try to only buy things you need and don’t come away from the sales with items that you never even knew you wanted!
4. Watch out for online scams
Although this is something to always look out for, Christmas is a time when scamming is at it’s peak. Christmas is also a time when you don’t want to be scammed because money is often tight.
Be wary of phishing emails, that might be pretending to be an organisation such as a bank or even a mail delivery service, where you may be asked to put information in about yourself. This also applies to odd looking websites. Your browser should identify unsafe websites, but still be careful just in case it misses one.
Scammers can not only take money from you, but could also make false credit or financial applications in your name. Be extra alert to scammers when shopping online this Christmas.
5. Enjoy the holidays
Everyone’s financial situation is always going to be different, and therefore everyone will struggle in different ways during the holidays. However, it’s important to take a step back and enjoy the great season that is Christmas. Enjoy yourself, spend time with your loved ones and most importantly relax so that you are ready to tackle the new year.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
