Congratulations! Another year is behind you and another W-2 is on the way. If you have not already received your W-2, you should any day now. Employers are required to mail them by January 31st. Since millions of Americans get refunds every year, most of the people receiving the refund start planning what to do with it months ahead of time. Should you go on vacation? Payoff old bills and credit cards? Put it down on a house? Or do what thousands of people do every year and use it to help buy a car?

For millions of Americans, tax refunds represent the ONLY time every year when they will have $1,000-$3,000 (or more) at one time, in one lump sum. It is predictable and many people rely on it.

This year, do something intelligent with your tax refund: use it to better your future. Spend it on something that will give you positive long term benefits, unlike a TV, furniture, vacation, clothes, or some other quick waste of money. There are several uses of your tax refund that will help you become more financially sound.

Instead of blowing your tax refund on a senseless purchase, use your 2007 tax refund to focus on your financial well being. If you have bad credit problems, look to rebuild your credit. Developing a stronger credit history now can save you thousands of dollars in the future. One of the best ways to reestablish your credit is with an auto loan, as long as you make your payments on time. It is amazing what 12-24 months of on time auto loan payments can do to help raise your credit rating. If you are interested in applying for an auto loan on-line, try WashingtonAutoCredit.com and start building your credit right away.

Another option to improve your credit score is to use your tax refund to payoff or pay down your credit cards. Using as little as 20% of your credit limit can start to lower your score, so start by paying off your higher interest balances and then focus on paying off one card at a time. Eventually, you will have much less revolving debt and your scores should improve as your balances increase. In addition, your monthly debt payments will decrease and you will have more money to do things you like.

If you are getting a refund, you have a big decision ahead of you as you get ready to file your taxes. Make sure you think about your long term goals, and try to figure out how your refund will be able to help you achieve them.

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This entry was posted on Saturday, February 2nd, 2008 at 11:18 PM and is filed under Car Buying Tips, Car Loans, Credit, Financing, IRS, Online Loans, Tax Refunds, Tax Returns, W-2, auto financing, auto loans, bad credit, bad credit auto loans, bad credit loans, bankruptcy, loans, taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.