Here are some tips to enjoy shopping during the coming holidays without hurting your credit score.

Tip #1: Keep your credit utilization ratio below 30% of your limit

The credit utilization ratio is the amount of credit you use as compared to your credit card limits. It’s a significant factor used to calculate your credit score, both FICO and Vantage Score. Experts recommend maintaining your credit utilization ratio below 30% of your total limit to keep your credit score healthy and avoid maxing out all your credit cards. Note that having a high credit utilization ratio for one month will not impact your credit score in the long term.

Tip #2: Make sure to pay your credit card on time

Failure to pay a bill can significantly damage your credit score. The later the payment, the greater impact on your credit score. Late or missed payment can reduce your credit score by more than 50 points.

Tip #3: Using credit monitoring tools

Using credit monitoring tools can  help you track your credit profile and financial transactions. They can notify you of high transaction amounts, late payments, credit usage, and credit score changes. You can be aware of negative actions and adjust them before they hurt your credit score.

If you want to easily compare credit monitoring tools, check out our credit check comparison page here