Maintaining a Good Credit Score during the holiday season
The holiday season is a time to relax, spend time with family and have some retail therapy. What better time to gift yourself and your loved ones, especially after the year we just had? Though we might be tempted to spoil ourselves during this season, especially with so many sales promotions available (Black Friday, Cyber Monday, Yuletide sales) we must be smart and not go into debt unnecessarily. Remember, the long month of January is coming and though there is light at the end of the COVID-19 tunnel, it will still take a while for the vaccines to reach our shores and be distributed accordingly. If this year, has taught us anything, it is to be prepared for any eventualities especially with our finances.
Due to the COVID-19 pandemic, world economies experienced some negative effects, most especially in developing economies such as ours. Nigeria has had to contend with a public health crisis, civil unrest, rising inflation and fluctuating oil prices, just to mention a few.
So, what can you do to maintain a good credit score in the holiday season and even beyond?
- Check your current credit score: Before going into any new debt or taking advantage of credit facilities during the holidays, you should check what your current credit score is, as this will guide you before taking any credit decisions. The CRC Score powered by FICO ranges between 300-850 (300 being the lowest and 850 the highest) and is one of the metrics used by lenders to determine how risky it is, to give you a loan. If your credit score is high, then you know your credit history is healthy (you are low risk). Accessing finance would be easier, however, if it is low, you need to ask yourself some tough questions and do the needful to get your credit history in order.
- Set a Budget: You might not like to hear this, but this is more important when you have a lot of expenses. If you go above what you can afford and take a loan, you will still have to pay it back. No one wants to start the year in debt that could have been avoided and negatively affect your credit score.
- Pay off outstanding debts: Before you start your spending spree, make sure you settle your debts especially those that are due and with high interest rates.
- Monitor your credit report regularly: Data on your credit report is what is used to calculate your credit score and any inaccuracies can lead to a lower credit score which can negatively affect your access to finance and postpaid products when you do need it. So be on alert even during the holidays because cases of identity theft and internet scams may increase. Monitoring your credit history helps you spot inaccuracies quickly for immediate rectifying.
Taking the above steps is a great way to keep your credit score healthy and your finances in tip top shape, ready to take on the new year. To request for your credit scores or credit report from CRC Credit Bureau Limited, download the CRC Mobile App on the Google and iOS stores now or on our website by clicking here https://crccreditbureau.com/products
Have a wonderful Christmas and Happy New Year in advance…