If you’re like millions of Americans right now, you’re probably planning how you’re going to spend that nice income tax refund that you’ve just received! Maybe you’re planning to do some remodeling at home? Perhaps you’ll use that money for a spring vacation? Or maybe you just plan for it to go into your savings account? What if you don’t have a plan for the money? Then what?
Here’s an idea. Why not use your tax refund to improve your credit score? That’s right. Use this year’s income tax refund to improve your credit score! Even if you’ve got good credit, using your tax refund to pay off some of your credit card balances will help to boost your score (especially if you’re over and above the 30% usage limit that most credit bureaus look for), even if your credit is already good!
Now, if your credit is less than perfect? Then you have an excellent opportunity to use your tax refund to get a secured credit card! Not only will the refund still be available for use, but you will establish available credit that will be reported to the credit bureaus. And that is a great first step to improving a less than perfect credit score!
Truthfully, doesn’t it make more sense to use your tax refund for something that will last longer than the time it takes to spend the money? Plus, the improvements that you make to your credit score might just put you on track to having the kind of credit that would allow you to do a lot more of what you want to do in the future! So, think before you spend that tax refund frivolously – use it to your advantage!