JACKSON, MISS– The holiday shopping season is in full swing, and if you’re careful, you could be using this opportunity to boost your credit.
With credit cards, if you’re careful and show some restraint, paying with plastic could actually help you boost your credit score, so long as you pay your balances on time.
The finance site Wallethub.com analyzed the best credit cards for the holiday season.
But before going the credit card route, see what you can save, say financial advisers.
“Go ahead and factor Christmas into your budget,” said Brent Walker with RiverTree Financial Planning. “Set a number for what you can spend, and start saving for that amount.” Walker said don’t touch that money until Christmas time, even if it means setting up another account or enrolling in your bank’s Christmas Club.
Sometimes though the problem isn’t saving money–it’s that there’s no money to save. So it becomes tempting to jump into that credit card offer in time for the holidays.
“The saddest day of the year,” said Walker.“Falls on January 19th or 20th, when folks get their credit card bill from Christmas. Because then they don’t know what to do.”
Walker said using a pre-paid card and saving in advance is the best option to avoid overspending and messing up your credit. So start a piggy bank now for that shopping list.