Tidbits® - April 2008

Credit insight from Credit.com

Welcome to the Credit.com newsletter!

In this issue, we're sharing ideas for spending your tax refund and stimulus checks, finding a mortgage, explaining short sales and announcing an upcoming credit event in San Francisco!

Quick Tip

The mortgage industry is getting back to business! Apply online today for a mortgage, refinance or home equity loan. Free rate quote online today!

Apply for a mortgage or refinance online: http://www.credit.com/r/Centro_Refinance

Six Tips for Spending Your Windfall

Planning for Your Tax Rebate & Economic Stimulus Checks

You might be coming into a good chunk of money in the next few weeks. The average tax refund in the US is $2,200. When you add that to the economic stimulus rebates that are coming out in May, you'll have quite the windfall.

A qualifying family of four would get $1,800 with those rebates and could be looking at $4,000 in the bank by the end of May.

About the Economic Stimulus Rebates

Single tax filers with an income below $75,000 can receive up to $600. Couples with an income below $150,000 will get a rebate up to $1,200. And parents will receive an additional $300 for each child under 17. If you want to estimate exactly how much you'll get, the IRS has posted a calculator:
http://www.irs.gov/app/espc/

Paper checks will be mailed out May 16th through July 11th. But you can get your rebate as early as May 2nd if you signed up for direct deposit with your tax returns. You can see the complete schedule here:
http://www.irs.gov/newsroom/article/0,,id=180247,00.html

Spending Your Windfall

Deciding what to do with your extra funds is the fun part. Here are some of the options to consider:

1. Shop!
The stimulus rebate is designed to get you to spend, after all. Plan to put about 10% of your windfall, or a couple hundred dollars, towards a fun purchase. You can help the economy the most by shopping for something made in the US and buying it at a local store.

2. Look Ahead.
Is there a big expense coming up this summer? You might want to put some of your rebates in a free high-yield savings account to pay for a home repair, car repair or a trip to a wedding. This type of account earns a high rate and still allows you to withdraw your money whenever you need it:
http://credit.com/r/ing-orange-checking

3. Open a Secured Card.
A secured credit card can be an excellent tool for rebuilding your credit. You can use some of your rebate money to make the cash deposit into a savings account to "secure" the credit limit. As you use the card and pay it off on time each month, the credit card company will report your positive account management to the credit bureaus - and that positive account history can help you boost your credit score:
http://www.credit.com/r/card_secure

4.Pay Off Debts.
Get those credit card balances paid off. It'll give your credit scores a boost, save you money on interest, and will free up your finances so you can start building regular savings. It is best to put the money toward the account with the highest balance and highest APR first. Learn more about getting out of debt:
https://www.credit.com/r/dcl

5. Save It.
If you're already debt-free, you may want to put your rebate toward long term savings. It's a great time to get into the stock market since prices are low. Talk to a financial advisor about making your money go further by opening an IRA or a 529 education savings plan:
http://www.credit.com/r/tidbits_savings

6. Donate It.
Share some of your rebate with a worthy local cause. Donating to a school, a food bank, or your favorite charity is a great way to ensure that a portion of your rebate will go directly to helping your community.

How are you going to spend your refund and stimulus rebate this year? Vote in our online poll!
http://www.creditbloggers.com/2008/03/survey-spending.html

If you have any questions, feel free to email our team of experts at tidbits@credit.com.

Ask John

What is a "short sale?" What does it mean for your credit reports and credit scores? John Ulzheimer, explains how a short sale works and how it is different than foreclosure.

Read more about short sales:
http://www.credit.com/r/tidbits-vol31

On the Blog

If you're having debt issues, we've got ten great tips to help you get back on track. Read our recommends on the Credit.com blog.

Read 10 tips for getting out of debt:
http://www.creditbloggers.com/2008/03/top-10-ways-to.html

Special Event

Join us at the Money Wi$e Women Conference in San Francisco on Saturday, April 12, 2008. Learn how to manage your money and credit.

Register for this financial conference:
http://www.moneywisewomen.net/events/08_04_12_mww_forum.asp

Quote of the Month

"What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin"
- Mark Twain

Tidbits® - April 2008

About this newsletter
This information has been compiled and provided by Credit.com as a service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.

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