 TITLE: What to Do With Your Tax Refund CONTENT: Pay Down Debt and Improve Your Credit\n-------------------------------------\nYour tax refund may offer a great opportunity to wipe out some credit card debt—and help you improve your credit score—in a few basic ways:\n*   **Catch up on late payments.** Your payment history is the single most heavily weighted factor when calculating your credit score. If you're in danger of being 30 days late (or more) on credit card or loan payments, using your tax refund to catch up is a strategic win. Late payments that are 30 days or more past due stay on your credit report for up to seven years and ding your credit score. Using your refund to avoid late payments is a lasting victory.\n*   **Consider a secured credit card.** Are you just starting to build or rebuild your credit? Applying for a secured credit card is one way to establish credit if you have a low credit score or a brand new credit history. With a secured card, you provide the card issuer with a deposit usually equal to your credit line. In other words, a $1,000 deposit could get you a $1,000 credit limit. One hurdle prospective cardholders have with secured cards is coming up with the deposit money. That's where your tax refund can come in handy.\n*   **Pay down your credit card debt.** The average annual percentage rate (APR) on credit cards is currently around 16%, according to the Federal Reserve. That can add up to hundreds of dollars a year if you carry high balances. Paying down your high-interest debt saves you money—and also helps boost your credit score. When you use a lower percentage of your available credit, your credit utilization improves and your credit score often rises accordingly. END