Just because you’re going on a trip or on holiday it doesn’t mean that you also have to take a vacation from building your credit score. When it comes to your financial health, your credit score is one of the most important things you need to consider. That’s why you always have to take care not to damage it, and, if you can, to try to improve it.
A lot of people don’t want to think about their finances while on vacations. Unfortunately, this attitude can be damaging, as many credit card users tend to splurge whenever they take a trip abroad. And it only takes a few unpaid purchases to hurt your credit.
However, vacations and your finances don’t necessarily need to be enemies. They can be friends. You may not believe it, but there are ways to actually build your credit score while you take a break from reality.
1. Make sure you don’t miss any payments while on vacation
Your bills aren’t taking a break just because you are. Unless you pay a month or two in advance before leaving to relax on some sunny beach in the Caribbean, you need to make sure that your bills are paid on time and that there’s no chance of you missing a payment.
To take care of this, you can talk to your creditors and set up an automatic payment plan. This way, you won’t need to lift a finger and your finances will be safe while you’re having fun in the sun.
2. Use your credit card but be smart about it
Having some credit activity and paying everything off on time will definitely improve your credit score. So don’t be afraid to charge travel-related purchases, such as going to a restaurant or visiting a theme park, to your credit card. As long as you don’t go over the limit and you pay everything on time, you will prove your creditworthiness to your lenders.
The keyword here is “responsible.” A responsible credit card user is a happy credit card user.
3. Technology is your friend
If you want to be a responsible credit card user but you have a hard time remembering numbers or dates, you don’t need to worry. You can use a mobile app to keep track of your cards. Everyone has a smartphone nowadays. And we do tend to carry them wherever we go. So there’s no reason that you can’t be on top of your finances from any foreign country, museum or island paradise.
4. Don’t forget about secured credit cards
Secured credit cards work like other credit cards, but they require you to pre-pay for your credit line as a deposit. They’re a great tool to help you build your credit score. Use one of them while on vacation, make sure that you keep your balance low and make your payments on time, and your credit score will thank you.