Tips for Maintaining Good Credit During Holiday Shopping

Let’s be honest – the holidays can be tough on your wallet, especially with everything costing a bit more these days. Between gift shopping, travel plans, and festive meals, it’s easy to feel the pressure to spend. We get it – and we’re here to help you navigate the season without sacrificing your financial well-being.

With a few smart moves, you can enjoy the holidays and still feel good about your finances heading into the new year.

Check out the tips below to help you keep your credit strong and your budget on track.

Keep Up with Minimum Payments

Keeping your debt low is one of the best ways to stay financially flexible during the holidays. When you owe less each month, you’re not just saving on interest—you’re also improving your credit and freeing up more room in your budget.

Even if you can’t pay off your full balance, making at least the minimum payment on your credit card is key. Here’s why:

• No late fees. When you’re consistent with your payments, you’ll be able to avoid costly late fees.
• Staying ahead of expenses. Steadily paying off your debt empowers you to keep improving your overall financial health.
• Maintaining good credit. Making monthly payments helps you take advantage of the benefits of using your credit card and helps improve your credit score.

Automatic payments are convenient and allow you to stay on top of the money you owe while saving you time. Plus, you don’t have to worry about forgetting a payment.

Monitor Your Credit Score

Your credit score is more than just a number – it’s a snapshot of your financial health. And during the holidays, when spending tends to spike, it’s especially important to keep tabs on it. Several factors comprise your credit score.

• Payment history
• Amounts owed
• Length of credit history
• Credit mix
• New credit

Certain factors like payment history and the amount you owe make up most of your score, with each weighing 35% and 30%, respectively. Ultimately, your credit score has an immediate effect on your finances and can be the difference between getting rewarded with a low interest rate or being charged more than average in light of your past financial pitfalls.

Understanding your credit score allows you to take charge of your finances and make an effort to increase your score through actions such as refinancing, decreasing revolving utilization, and addressing missed payments or debt sent to collections. No matter how low your credit score is, there are multiple legitimate ways to increase your score and rebuild your credit. Though it might be tempting, don’t hire a credit repair company as they don’t provide any more help than what you can do on your own.

We offer a free credit score service¹ to members with a PSECU checking account or a PSECU loan. Once you’re enrolled, you’ll receive monthly updates about your score by text, push notification, or email. You’re also entitled to one free credit report annually from each of the three major credit reporting bureaus.

Think Carefully About Retail Store Credit Cards

That extra discount at checkout can be tempting, but opening a store credit card might not be worth it. A hard credit check can lower your score, and if you carry a balance, your credit usage goes up too.

Plus, store cards often come with limits – you can usually only use them at one retailer, and the rewards may not be as flexible. Instead, consider a rewards card that gives you cash back or points you can actually use.

Check Your Utilization Rate

Credit utilization is the percentage of available credit you’re using. For example, if you had a total credit limit of $10,000 on credit cards and were using $5,000, you would have a 50% utilization rate.

It’s best practice to stay within a 30% credit utilization range. That means you should aim to consistently borrow less than 30% of your total available credit.

Before you start shopping, check your balances on your credit cards. Make sure that if you’re planning to carry a balance, you won’t be pushing yourself into a higher credit utilization rate which could negatively impact your credit. Even better, plan to pay all of your balances in full to avoid interest charges and so that you don’t get into the habit of charging more than you can afford.

Make Spirits Bright and Savings Even Brighter

The Founder’s Rewards Card is a great way to earn cash rewards on every purchase², all season long. No confusing categories, no expiration dates – just simple, flexible rewards that help you get more out of your holiday spending.

Whether you're decking the halls or checking off your gift list, this card helps you celebrate with confidence and a little extra cheer in your wallet.

Wishing you a joyful, budget-friendly holiday season – from all of us at PSECU!

¹PSECU is not a credit reporting agency. Members must have PSECU checking or a PSECU loan to be eligible for this service. Joint owners are not eligible.

²Some exclusions may apply. See the Visa^® Founder’s Card and Visa^® Alumni Rewards Card Rewards Program Terms and Conditions for full details.