CHARLOTTE, N.C. — Christina Roman, consumer education and advocacy manager for Experian, told WCNC Charlotte's Jane Monreal the key to prevent yourself from falling into a financial burden from holiday spending is to think ahead.
"That could look like creating a budget that includes lists of what you're planning on spending on this season," Roman said.
She said a budget should include more than just the gifts you're planning on buying.
"If you're planning to travel, if you are planning to host events, if you like to do winter activities with the family," Roman said. "You should also include gift wrap in that list, because gift wrap can actually be quite costly."
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With about a month and a half until people really start to ramp up holiday spending, Roman suggested now is the time to make those lists, stick with your budget and avoid maxing out your credit cards.
"Your credit utilization is the second biggest factor impacting your credit score," Roman said. "You really want to keep those balances on your credit cards as low as you possibly can, if you can pay them off every month even better, because on top of the damage editable due to your credit score, it's going to create financial stress for you."
Your credit score can range from 350 to 850. Roman explained anywhere in the upper 700s to 850 will help consumers qualify for the best interest rates.
However, with anything lower, she said people may have a harder time getting low interest rates or even qualifying for a credit card or loan.
"Some of the pitfalls of having a low credit score include paying higher interest having to pay fees for everyday things like utilities," Roman said. "If you're signing up for utilities, you may have to pay a deposit fee for not being approved for credit."
Contact Jane Monreal at jmonreal@wcnc.com and follow her on Facebook, X and Instagram.
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