While filing taxes is a pain, receiving a refund is a sweet reward. As of March 29, 2019, the IRS has already issued over 59.9 million refunds, with an average check size of $2,873!*

It’s a good idea to plan how you’ll “spend” the cash from your refund. Here are 5 smart uses for your tax refund that can improve your financial health and credit profile: 

  1. Catch up on past-due bills. Late payments can have a negative impact on your credit score, and getting hit with late fees makes things even worse. Using your refund to pay old bills is a great way to wipe the slate clean.
  2. Pay down your credit card balances, starting with the highest-interest card. This will lower your credit utilization and reduce how much you’re paying in interest. Bonus points if you can pay off one card completely!
  3. Grow your emergency savings fund. Experts recommend keeping between 1 to 3 months’ worth of expenses in a savings account. Now is a great time to contribute to that goal.
  4. Make an extra payment on principal to your mortgage, car loan, or student loans. Make sure to specify that the payment is intended for principal, and not an advance payment for next month’s balance. That way you can reduce your interest and pay off the loan earlier.
  5. Ask your lender if they offer a biweekly or weekly payment plan. This makes budgeting a snap and helps you avoid late payments. Switching to this type of plan can be tricky in the first month due to how the timing works – that’s where your refund comes in. Bonus points for automating your payments this way!

Not all lenders make it easy to take action on #4 and #5, because they make money off interest and late fees. Luckily, EarnUp is on your side and can help you get ahead on your loans.

Want to learn more? Call our customer service team at 888-228-0341 to discuss how EarnUp can help you today. Our hours are Monday – Friday, 9am – 8pm Eastern Time (6am – 5pm Pacific).

Act now, and in the spirit of getting ahead we’ll waive our monthly program fee of $9.95 for the first three months and send that as an extra principal payment to the loan of your choice.

*Average refund amount taken from the IRS Season Filing Statistics from the week ending March 15, 2019.

There is no change to the terms and conditions of the loan. Payments are remitted by EarnUp to some loan servicers once monthly. Additional fees may apply, which may come from charges from your bank, lender or other financial institutions.

Information shown is for illustrative purposes only and is not intended as financial advice. Please consult a financial adviser for advice specific to your financial situation. EarnUp makes no guarantees as to the accurateness, quality, or completeness of the information and EarnUp shall not be responsible or liable for any errors, omissions, inaccuracies in the information or for any user’s reliance on the information.

Photo by Joanna Kosinska