Why Your Credit Score Can Make a Difference This Holiday Season

By Tiffany Sorensen

This December, a good credit score can ensure you’re able to purchase everything you’d like to give your loved ones. Regardless of what exactly you plan on buying, having a high credit score is likely to make your shopping experience more pleasant.

Credit Line

A high credit score means a high limit on one’s credit cards. When you prove to credit card companies you’re responsible about paying bills, they’re more likely to start you off with a high credit line or increase it upon your request. With a high credit line, you can easily charge large purchases – such as computers, airline tickets, and furniture – or many small purchases that add up. In addition, certain retailers will extend you a “Buy Now, Pay Later” payment option.

On the other hand, a poor credit score might mean you’ll have to pay for your gifts in cash or split up purchases between various cards with low spending limits. Carrying around large sums of cash or several credit cards at once can be unsafe. A poor credit score also implies that you must incessantly keep track of how much you have left to spend. “Buy Now, Pay Later” offers will either not apply or come with a higher interest rate for those with poor credit.

Cars

Perhaps you’re considering buying your spouse or child a new car this holiday season. Few presents are as useful or long-lasting as a car. With a good credit score, leasing or purchasing an automobile is made much easier. Those with high credit scores can take advantage of car loans that come with low interest rates. A good credit score means that you can benefit from a lower car insurance rate, too. No matter how you go about financing a new car, you’ll ultimately pay less if you have a stellar credit score. With competitive interest rates and car insurance premiums, you can keep more money in your pocket for other expenses that come up.

Electronics

As the year comes to a close, you might have to renew the contract with your cell phone service provider. Maybe you’d like to open a new phone line for your teenage daughter or son this holiday. Whether you’re renewing an old contract or opening a new one, having a high credit score will work in your favor. Those who have great credit scores are entitled to cost-effective service plans and new cell phones at a discounted price. During the holidays, some service providers even offer sales on tablets, cell phone accessories, and other devices. Electronics are perfect for work and play, making them the ideal gift for nearly everyone on your shopping list. But not everyone is entitled to such deals, so be sure to find out your credit score to see if you qualify.

 

To avoid headache after the holidays, maintain a reasonable budget and don’t spend more than you can afford to pay back. Credit card frauds are common this time of year, so carefully review all your credit card statements to be sure you weren’t overcharged. Happy holidays from Secure Credit Advisors!