When you're trying to rebuild your credit, the last thing you want is a pile of holiday debt following you into the new year. Not only does this cost you interest, but it also increases your credit utilization rate, which is bad for your credit score credit restoration birmingham. The higher the balance you carry, the more likely you will be able to make the minimum monthly payment or, worse, fall into the habit of paying your monthly payments late. Take a close look at your budget for November and December. How much money is coming in to pay off your credit card vacation? Once you've done the math, limit your holiday credit card spending to the amount you have available to pay off your monthly payments.