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Making arrangements for the arrival of a new baby is exciting, but you may have to face some significant financial changes. If you’ve recently taken home your new bundle of joy or waiting for one that’s on the way, you can’t afford to let your credit score fall.
Here are a few techniques that will help you ensure that your credit score doesn’t drop:
- Automate Bill Payments: Whether it is paying medical bills or making your credit card payment, almost all financial responsibilities take a backseat in the first few months after the arrival of your newborn. Overlooking the timely payment of bills or credit cards can directly impact your credit score. However, this issue can be easily managed by switching to automated bill payment long before the baby is due to arrive.
- Purchase Supplies When Required: Most parents want to pre-purchase items like diapers and clothing for their newborns, but they need to remember that babies tend to have a fast growth rate. Your baby may quickly outgrow their outfits just after wearing them once or twice. So, it is advisable for parents to shop with proper planning to avoid unnecessary purchases that put them in risk of grave financial trouble.
- Avoid Seeking More Credit: Stay away from seeking extra credit, like applying for a new credit card. This kind of spur of the moment decision can become a terrible idea, especially for parents with no means to increase their income. Applying for extra credit creates additional financial liability for new parents, and this can quickly end up as a bad financial decision.
- Use Cash-Back Rewards: A rewards credit card is a very beneficial tool for any new parent who likes to earn cash back or points on their most purchased items. You can save a lot on a big purchase with cash-back or points system that many credit card companies offer. For instance, if you’ve accumulated a few hundred dollars in cash-back rewards, you can easily use that money to make other substantial purchases.
- Establish The Priorities: One of the best methods for new parents to prevent a financial crisis and the risk of hurting their credit score is to establish their priorities. You should know how to distinguish between what is an “absolute need” and what is a “would want” for your child. Also, you should order your priorities based on resources available to you, without risking your credit score.
By following these tips, you can avoid experiencing the baby blues when it comes to your credit score management.