Stay in control of your credit with our Christmas credit countdown

Credit Sesame’s Christmas countdown of 24 tips to help you stay in control of your credit.

It’s easy to lose track of spending between gift shopping, travel, and festive activities, but the holiday season can be the perfect time to give your finances extra attention. As the New Year approaches, promise yourself that you will stay in control of your credit during this busy time of year. Our 24 tips can help you prepare for a New Year’s resolution to improve your credit and improve your personal finances in 2024.

1. Check your credit report before the holidays. Before diving into holiday shopping, take a moment to ensure your credit report is error-free. Catching any mistakes now can help prevent surprises later.
2. Set a holiday budget for gifts, travel, and fun. Create a detailed budget for all your holiday spending, including gifts, meals, travel, and holiday activities. Stick to this budget to avoid overspending.
3. Pay down debt before you start shopping. If you’ve been carrying balances on your credit cards, aim to pay them down before the holiday season begins. This will reduce the impact of any new charges during this time.
4. Use credit cards carefully for holiday purchases. Credit cards can be handy, but make sure you can pay off the balance in full each month. Avoid letting holiday purchases linger on your statement.
5. Keep credit card balances low. To protect your credit score, aim to use less than 30% of your credit limit during the holidays. Going over 30% can result in a drop in credit score.
6. Ask for a temporary credit limit increase. If you expect to make larger holiday purchases, ask your credit card issuer for a temporary limit increase to reduce your credit utilization ratio.
7. Consider a holiday balance transfer. If you’re already carrying high-interest credit card debt, consider transferring your balance to a card with 0% APR for a few months to save on interest as you shop for the holidays.
8. Avoid opening new credit cards just for discounts. It can be tempting to open new cards for holiday discounts, but doing so can lower your credit score. Stick to using the credit you already have.
9. Make extra payments on your credit cards. Instead of waiting until the due date, make small payments throughout the month. This will keep your credit balances low and help you stay on top of your spending.
10. Set up automatic bill payments. The holidays can get busy, so set up automatic payments for your bills to ensure nothing slips through the cracks and you avoid late fees.
11. Use cash or debit for gifts. Consider using cash or a debit card for your holiday shopping. This prevents adding more debt to your credit card balances.
12. Say no to payday loans. Avoid payday loans during the holiday season. They often come with high interest rates and can worsen your financial situation.
13. Track your holiday spending. Use an app or spreadsheet to track your spending as you go. This will help you stick to your budget and avoid overextending yourself.
14. Don’t get carried away with holiday sales. They’re everywhere, but don’t let yourself feel pressured into buying things you don’t need. Stick to your shopping list.
15. Use rewards to reduce debt. If you have a rewards credit card, use the accumulated points or cash back to pay off your holiday purchases. This strategic move can help reduce your overall debt and alleviate financial stress.
16. Pay off holiday purchases early. The sooner you pay off your holiday shopping, the less interest you’ll pay. Try to clear your balances before the end of the month.
17. Review your subscriptions and cancel unused ones. The holidays are a great time to cancel subscriptions you no longer use. This can free up funds to pay down holiday debt.
18. Don’t max out your credit cards. Aim to leave some breathing room on your credit cards so you can continue to use them without negatively impacting your credit score.
19. Make a holiday shopping list. Planning your purchases ahead of time will help you avoid impulse buys and keep your spending under control.
20. Take advantage of discounts on essentials. Many companies offer discounts around the holidays. Use these discounts for regular expenses to free up cash to pay off holiday purchases.
21. Start saving for next year’s holiday season. Set up a holiday savings account now so that you won’t have to rely on credit cards next year to fund your celebrations.
22. Be mindful of travel expenses. Travel is a common holiday expense. Create a budget for flights, accommodations, and transportation to avoid unnecessary charges on your credit cards.
23. Don’t use credit for last-minute holiday purchases. If you find yourself scrambling for last-minute gifts, resist the urge to charge it all to your credit cards. Stick to your budget or use funds you’ve already set aside.
24. Plan to tackle holiday debt immediately. After the holidays, plan to pay off any remaining holiday-related debt as quickly as possible to avoid accruing interest in the new year.

Stay on top of your spending, avoid unnecessary debt, and you can be ready to embrace 2025 with a strong financial foundation. You can enjoy a stress-free Christmas and start the new year in control of your credit.

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