Boost Your Credit Score

5 Ways To Boost Your Credit Score During Christmas

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How to Improve your Credit Score?

Your credit score or your EQUIFAX score is a crucial factor which determines whether you will be approved for new credit or not. Free Credit score check is generated based on your credit history which includes previous loans and credit payment patterns in relation to them. An excellent credit score signifies strong creditworthiness while a low score signifies low creditworthiness. A low credit score will project you as a risky borrower who is credit hungry and lenders will be skeptical about approving your loan application.

Also Read:- Free Credit Score Online: How To Obtain It?

The Christmas week is at our doorstep and all of us are in a mood to celebrate! After all each one of us has been through a very tough time tis year and this is the time when all of us can just take some time off and celebrate this long weekend with our loved ones. As the Christmas fiesta approaches, we know all of you are scrolling through all the shopping websites and are looking to go on a shopping spree!

Also Read:- Benefits of Checking Your Credit Score Online

This is the time to pull out your credit cards and book vacations, clothes, accessories, gifts, goodies, furniture and much more. While this is a great idea at this time of the year since you’ll be eligible for the festive offers and discounts, you must also keep in mind that the more you spend, the more you’ll be under a close watch from your bank or lender. Why? Well, because the increased amount of expenses will hit your credit utilization ratio, which is a major contributing factor for your credit score. Just like this one factor, there are other factors which play a major role when it comes to boosting your credit score. During festive seasons, we make a lot of expenses and this is the exact moment when you can manage, protect, and boost your credit score! Want to know how? This is exactly why we have listed out 5 WAYS TO BOOPST YOUR CREDIT SCORE DURING CHRISTMAS.

Repay Credit Card Dues on Time

Repaying your outstanding credit card bills on time will certainly help you to improve your credit score. Getting into the habit of paying only the minimum amount due as it appears on your credit card statement every month will help you avoid any late payment charges. However, this would lead to interest and taxes being added to your bill in the next cycle which will lead you into a debt trap. Paying dues on time not only prevents interest from rising, but it also helps in improving your credit score in the long run.

Also Read:- Best Credit Cards For Christmas Shopping Dec 2020

Take Credit Utilization Seriously

If you use less than 30% of your credit card limit, itwill help you repair any damage to your credit score. While not using your credit card at all can have an adverse effecton your credit score. This is why it is important for you to pay off your credit card dues on or before your due date. Using more than 30% on your credit card is generally considered to be high credit utilization, thus you can also opt for a higher credit limit which can help you increase your credit score. Also, if you limit the number of applications for loans. Applying for multiple loans can also have an adverse effecton your credit score.

Keep a mixed bag of credit

We all are aware of the fact that there are two types of loans, secured and unsecured. If you opt for too many unsecured loans, banks tend to see it as a drawback and might be skeptical towards granting your loans. What you can do is get a mix of both unsecured loans like personal loans and secured loans likes car or home loans along with a credit card, this will help the bank understand that you understand the concept of credit mix and will be willing to lend you funds.

Also Read:- Why Should You Check Your Credit Score Regularly?

If rejected, hold your horses

In case you have applied for a loan or a credit card and your application has been rejected, this particular rejection will be recorded in your credit report. If you go and apply to another lender that very moment, then that particular lender will see your low score and the previous rejection and will reject your application. The intelligent thing to do in a case like this is to not apply any time soon and wait for your credit score to improve.

Monitor Your Credit Report

Keeping a tab on your credit report is a particularly good habit because it lets you know the current status of your credit report. You can check where you have defaulted or delayed your payments which has been the reason of the downfall in your score. It will also give you a detailed structure of your spending habits, credit history and a lot more. This habit helps you to repair your credit score if it is low and helps you to build on a good credit score.

Read More – Benefits of Credit Health Report


This year has been one hell of a roller coaster ride! We hope you have a pleasant Christmas and an incredibly happy new year!

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