Protect Your Credit from the Credit Grinch

The Grinch may have stolen your Christmas joy in the past, but this year will be different. Because now you’re on a path to financial freedom. Often after the holidays, we realize we spent too much money and now must jump on the road to recovery to survive another year.

Listen, I understand how you can get carried away while loving on family and friends. Good food and drinks are constantly flowing. And soaking up the vibes makes you forget about your worries.

While savoring those joyous moments, don’t go too hard with unplanned spending. That’s guaranteed to send the Credit Grinch your way. Instead … use these 5 tips to ensure your credit stays intact this holiday season.

Tip #1: Avoid Overspending

By now, you should have created a detailed budget that aligns with your goals and priorities. That way you know exactly what you can and can’t spend.

Christmas should be a time for laughter and good cheer. You don’t want to be the Grinch, pouting in the corner, because you’re broke. So, stick to your budget and don’t let up!

Tip #2: Watch your Credit Utilization

Just because you have a high limit on your credit cards doesn’t mean you should max them out. Credit utilization is the amount of revolving credit you’re currently using divided by the total amount of revolving credit you have available.

A low credit utilization rate means you’re doing a good job managing your credit. So, aim to keep your utilization under 30%.

Tip #3: Monitor Your Credit Reports

You know how they say, “freaks come out at night”? Well, scammers come out during the holidays. According to, credit card fraud accounted for $129 million in losses in 2020.

So, keep a close eye on your credit for unusual changes. The last thing you need is someone destroying the hard work you did to build your credit and leave you to handle the cleanup.

Tip #4: Make On-Time Payments

Making payments 30 days or more late can drop your score as much as 100 points. And just one late payment can wreak havoc on your good credit standing. Plus, the impact of paying late takes longer to recover from than you may think.

Want to keep your credit in good standing? Pay your bills on time. If possible, pay early to reduce interest.

Tip #5: Skip the Store Cards

While shopping in your favorite stores, you may be tempted to apply for their credit card to save money on your purchase. Now is not the time for new inquiries or raising your debt-to-income ratio.

Look, the APR on store cards is higher than traditional credit cards. Do yourself a favor and only use the cards that add value with points and rewards.


Setting a budget for holiday spending and being conscious of tempting offers, is a great way to protect your credit during the holidays. By using these tips, you’ll eliminate stress and still have money left over to save or buy a gift for yourself. Need more tips for spending with purpose? Join the Flyy Credit University today by clicking here:

Credit Professional, ready to help you take your financial future back.

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