Home > Credit 101 > 4 Mistakes People Make With Their Credit During the Winter

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No matter what seasonal holidays your family celebrates, we’re definitely in the festive season right now — it tends to start with Halloween and ends on January 1.

Over the last month or so, we’ve filled our pantries for Thanksgiving, hit the stores for Black Friday, and stocked up on gifts and food for Christmas or other family celebrations. (Not to mention all the pageants, concerts, get-togethers and parties that come with the season.)

During this time of year, many people get focused on gift giving and accidentally make these four credit mistakes, As we head into the home stretch, here are some not-so-smart spending behaviors to flag.

1. Overspending

‘Tis the season for giving, but some people give so much that they hurt themselves financially by spending more on their credit cards than they can pay back. That $25 gift for a friend that you thought you were getting a good deal on can suddenly cost $40 (or more!) once interest and fees are added onto an unpaid credit card. So be sure in these last few shopping days to stick to your budget. It’s okay to put things on your credit card … as long as you can pay off your credit card right away. (You can see how your holiday shopping has affected your credit by viewing two of your credit scores, updated every 14 days, for free on Credit.com.)

2. Not Watching for Fraud

There’s a lot of shopping this time of year – it starts with Halloween candy and costumes for the kids and ends with champagne for a New Years Eve celebration (and maybe a gym membership to go along with your 2017 resolution). Along the way, you’ve probably had your credit card in hand fairly often – shopping for a turkey for Thanksgiving or angling for a great deal on Black Friday or Boxing Day. With all that extra credit card use, it’s important to stay vigilant and monitor your credit card statements carefully for fraudulent charges. Also, be sure to report them to your issuer immediately to have the charges reversed and your card replaced.

3. Lending a Credit Card

If your spouse is running out to pick up some last-minute fixings for the annual family get-together, or maybe some stocking stuffers for the kids, it might be tempting to hand off your credit card to them if they don’t have their own. However, this common mistake can prove costly for so many people every year, because while your family member might be very trustworthy, a simple mistake of leaving behind a credit card they’re not used to carrying could lead to fraud. (Something else that’s important to note: Lending your credit card to someone else, though it isn’t illegal, could put you in violation of your card agreement and make it harder to reverse the charges made while the plastic was out of your hands. You can learn more about how this works here.)

4. Putting Your Credit Review on Hold

I always recommend reviewing your credit report at least twice a year — or even quarterly. But this season can be so busy that people will often put their good habits and responsibilities on hold so they can focus on the turkey, decorations, costumes and shopping that needs to be done. However, skipping a credit report check just once a year (especially during the holidays) can set you back dramatically and make it that much harder to check and clean up your report in the spring. (Remember, you can pull your credit reports for free each year at AnnualCreditReport.com.)

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