6 Tips for New Parents to Protect Their Credit Score

Preparing for parenthood and having your first baby is exciting, but you’ll probably have to face some major financial changes due to increased responsibility. Therefore, it is crucial to remember that there’s going to be one more person depending on you, and moving ahead you need to keep a check on your finances in order to help you in your credit score protection.

Here are a few tips to make sure that your credit score doesn’t slide while you are raising your little bundle of joy:

How new parents can protect their credit score
  1. Don't Go on a Shopping Binge When you are expecting a baby, it’s tempting that you must buy everything. But paying for those adorable booties or cute loveseats with a credit card is the last thing that you should do. Your credit score majorly depends on the amount of debt you carry, so don’t use credit at all if you are close to maxing out one or more credit cards; it’s going to help you in your credit score protection.

  2. Keep Record of Your Medical Bills Having your first child is expensive because you will have to deal with a pile of medical bills related to the birth and the entire medical process. It’s important to keep all of this organized so you know what will be paid by your insurance company and what you’re expected to pay. If a medical bill goes unpaid, it can end up in collections, and can drop your credit score.

  3. Automate Your Bills As new parents your normal schedule turns out to be hectic, and chances are that you might miss on your bill payments. Therefore, it’s wiser to automate your bill payments. Assign your bills on different dates and the money will be withdrawn as payment for that bill. This will not just protect your credit score but will also give you one less thing to organize and worry about.

  4. Don't Forget Your Rewards Redeem your cash-back rewards wherever possible. Use it to keep your card balance low, as well as to pay off a larger purchase you just made, say that pricey stroller which you really liked.

  5. Say ‘No’ to More Credit Cards Most of the new parents are financially burdened with the extra costs of child care like, diapers, clothes, toys, wipes, and the list goes on. It might seem easy to take out just one more credit card, but it’s a bad idea. Rather, build a budget and inculcate better spending habits for your credit score protection.

  6. Take One Project at a Time Preparing for a new child’s arrival can be intimidating, but that doesn’t mean you need to rush into things. Keep yourself from splurging, and avoid grand décor or renovations. Take on the project only when it’s absolutely needed.

Now you know that protecting your credit score as a new parent simply depends on making smart decisions with your credit and budgeting wisely.


Robin Williams

Robin Williams is the General Manager at CashOne, a reputable financial services company that helps consumers tide over their short-term financial crises. Our fast, convenient, and secure online loan application eliminates the unnecessary hassles or time required to procure payday loans online.

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