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How To Build Credit With Your Tax Return

Turn your refund into a step toward a brighter financial future.

How To Build Credit With Your Tax Return

Tax season is here, and with it comes the chance to make a smart move for your financial future. For many people, a tax refund is a welcome financial boost, whether it's used to pay off high-rate debt or simply treat yourself to something nice after a year of hard work.

If you're expecting a refund from the IRS, this is a prime opportunity to give your credit a boost. In this post, we'll share a practical approach for how you can build your credit using your tax refund.

Why Your Credit Score Matters

A credit score is more than just a number. Think of your credit score as your financial reputation. It's a key factor that lenders, landlords and even some employers use to understand your financial reliability. A higher score can help you qualify for better interest rates, skip hefty security deposits and even save on insurance premiums.

If your credit score isn't quite where you want it to be, don't worry! Credit scores are calculated using several factors, such as your payment history, credit utilization, length of credit history, types of credit and recent credit inquiries. By focusing on consistent, on-time payments and keeping your credit usage low, you can start to see improvements over time.

Strategies like using a Credit Builder Credit Card can be particularly effective because they allow you to establish a positive payment history and demonstrate responsible credit use, two of the most important components of a good credit score.

What is a Credit Builder Credit Card?

An Apple FCU Credit Builder Visa® Credit Card is a tool designed to help you establish or rebuild credit. Here's how it works:

  • You deposit $250 to $5,000 into your Savings account, and this becomes your credit limit
  • Use the Card for small purchases with secured credit up to $5,000
  • Pay off the balance on time every month
  • Your payment activity is reported to the three major credit bureaus, helping you build a positive credit history.

With responsible use, a Credit Builder Credit Card can help you take control of your financial future and improve your credit score.

Why Use Your Tax Refund to Build Credit

The average tax refund in 2024 was approximately $3,000, which is a significant amount of money that you can use to jumpstart your credit-building journey.

These are some reasons why your refund is a perfect tool for achieving your financial goals:

  • Smart financial move: A tax refund is often a lump sum of money that you didn't incorporate into your regular budget, making it an ideal resource to use for a long-term financial benefit like improving your credit
  • Kickstart your credit-building journey: Opening a secured Credit Card with your refund can help you establish a line of credit without impacting your savings or monthly cash flow
  • Build credit without taking on debt: A secured Card limits your spending to the deposit amount, which encourages responsible use and prevents overspending.

Build Credit With Apple FCU's Credit Builder Credit Card

Apple FCU's Credit Builder Visa Credit Card is a simple, effective way to work on your credit. Here's an overview of what makes it a great choice:

  • Affordable starting point: Get started with a deposit as low as $250
  • Flat rate: Our Credit Builder Credit Card offers a flat 18.00% APR, which is lower than the average APR offered for a new credit card
  • Advanced security: Features like EMV chip technology and contactless payment options keep your transactions secure.

By using your tax refund for a refundable security deposit on a Credit Builder Credit Card, you're not just securing a card; you're setting up a foundation for a stronger credit profile.

Make Your Tax Refund Work for You

This tax season, turn your refund into a step toward a brighter financial future. With Apple FCU's Credit Builder Credit Card, you can start building your credit and unlocking new opportunities.

Ready to take the first step? Learn more about our Credit Builder Credit Card and prequalify today with no impact on your credit score.


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