If you are expecting a tax refund this year, and you are looking to build or repair your credit score this is the article for you! As we all know buying any big ticket item is hard without a good credit score. We also know it takes more work to raise our score than it does to let it drop. This year, consider taking your tax refund and using it to get a Pledge Loan. A Pledge Loan means using money you have in savings or a CD as collateral for a loan. If you don’t pay back the loan, the lender uses the money you pledged to pay back the loan. You will pay a slightly higher interest rate on the loan than you are earning on your savings. For example, if you deposit the money into a Bowater Credit Union Savings, it is currently earning 0.10% APY. The loan rate on a periodic-payment Pledge Loan against money in that account would be 2.6% APR. Why is this a great way to try and build your credit score? You get to take the money you receive and put it back so you are guaranteed to have the money for your loan payment every month, PLUS you get to take the money from the loan and use it on whatever you need. The simple truth about credit scores is that you have to pay back what you borrow on time to have a good score and a responsible history. The longer you show that you can do that, the higher your calculated score will get. If you choose to get a pledge loan with Bowater Credit Union we can even make sure your payment is transferred automatically each month so you will never miss a payment with out even thinking about it.