The day is finally here: vacation! Kids everywhere scream in excitement, dads grab their fishing poles, and moms prepare for a week off from the details of running the house. Family vacations are absolutely necessary for a family to rest and relax. It’s also a time of making great memories that will last a lifetime.
The funny ones are the best. However, even though we consider the money it takes to fund the getaway of our dreams and often budget it down to the penny, we often forget one huge detail: our credit score.
Below are some things to think about concerning your credit score while you’re on vacation.
You spent the entire previous year saving for this trip and you accrued a pretty good amount. If fact, it will probably cover the majority of what you want to do. With that said, what is left will more than likely be covered with credit cards. The majority of us own one or two.
Credit cards can be a lifesaver, but there are some things you should keep in mind. If you are going to use credit to fund your vacation, make sure not to spend over 30% of the line of credit given to you. This sends up an immediate warning to creditors checking out your FICO score.
It tells them that maybe you’re not so hot at handling large amounts of money. This could hurt you in the long run when you attempt to apply for things such as a car or a new home. So, go easy on the credit.
Do You Really Need It?
When you’re on that trip with your family and the food is great, the company’s even greater, and the good times are flowing, you have a tendency to give in to your wants. That’s what a vacation is for after all, right? Be that as it may, when you are considering how things will affect your credit score, you still have to weigh the pros and cons of even your wants.
Do you really want it? Is it something your child will play with for a week and then lose. Are you really going to wear that dress or get it home and then complain about how big it makes your hips look?
Are you going to actually use the new tools you get or are you just dreaming you are Tim the Toolman Taylor and not everyone in your community needs you to bring them home a souvenir. Think about what you buy and seriously consider even the purchases you can live without.
Unfortunately, life doesn’t stop even while we are on vacation. Johnny could still fall and break his arm running around the pool at the hotel. You could have a fender bender on the way to or from your destination and regrettably, there’s always a chance you could be robbed.
Emergencies happen no matter where we are or what chapter of life we are in. It’s these emergencies that are the most damaging to the majority of people’s credit. A lot of times, we are just not prepared for the punch in the stomach life can deal us.
This lack of preparation often damages our credit score by accruing huge hospital bills, car repairs, and replacement fees for lost identification. In the case that we don’t see it coming, many of us will attempt to cover the costs with loans and credit cards. Both are options that could prove detrimental for your FICO score.
The next time you prepare for that time of rest and relaxation, make sure to consider how your spending habits might affect your credit score.