 TITLE: New Child Tax Credits Under the 2021 Stimulus Plan CONTENT: Will Child Tax Credits Help Your Credit?\n----------------------------------------\nChild tax credits won't affect your credit directly. Any advance payments you receive won't appear on your credit report or be used to calculate your credit score. But, depending on how you use these credits, they may help you improve or maintain your credit in a few significant ways.\n*   **Pay down debt.** If you're carrying high-interest credit card debt, consider adding all or part of your money to your monthly credit card payment. You'll reduce the amount of credit you're utilizing—which can help raise your credit score—and save yourself money in interest.\n*   **Avoid adding to your debt.** Similarly, the money you receive can help you make purchases you've put off during the past year without utilizing your credit. Maybe your child would benefit from a new computer or joining a sports league as pandemic restrictions loosen.\n*   **Invest in your creditworthiness.** If you're still adapting to a new financial normal, this money could help you open up new possibilities. Tax credits may make it possible to get after-school care so you can work a full-time job and increase your income or provide seed money for a micro-business you can use to generate extra cash. END