How to Build Credit and Get Cashback With Your Tax Refund

When it comes to your tax refund, chances are that you (along with most individuals) have been daydreaming about treating yourself to something fun. Well, what if I told you that you can do that while also building your credit and getting cashback rewards and bonuses? How you ask? By using your tax refund to open a secured credit card for building (or rebuilding) credit. 

Make your tax refund work harder for you with a secured credit card

Your tax refund can be used for the security deposit on a secured credit card, and then that card can be used to make purchases to help build credit and earn cashback bonuses. As an added plus, when you sign up for a card like the Sable One Secured Credit Card, you’ll be able to enjoy other premium benefits! 

If you’re not familiar with secured credit cards, here’s what makes them different from traditional credit cards.

  • To open a secured credit card account, you are required to give a security deposit, which acts as collateral for your card issuer if you can’t make payments.
  • Your credit limit is determined by your deposit. 
  • They act similarly to a debit card, but unlike a debit card, a secured credit card will build your credit history.
  • With regular use and time, some allow you to graduate to a traditional, unsecured credit card. 

How do secured credit cards build credit?

If you have no credit or bad credit, signing up for a secured credit card to build or rebuild your credit history and improve your credit score can be a good idea. Keep in mind, you build a positive credit history incrementally by maintaining good credit-building habits such as:

  • Making on-time payments 
  • Using the card frequently 
  • Increasing your credit limit over time
  • Not maxing out your credit limit too soon

The best way to see your score improve is to use your card for your daily purchases to practice these credit-building habits. 

Why should I care about my credit? 

There are a variety of ways your credit affects you, but here are some examples of the benefits of having good credit:

  • Lower interest rates on loans
  • Better approval odds for loans and credit cards
  • Easier approval from landlords for rentals and the possibility of lower deposits  
  • Avoid security deposits on cell phone contracts and utilities 
  • Lower car insurance rates

Where can I open a secured credit card with my tax refund to build my credit AND get cashback?  

The Sable ONE secured credit card is a great option if you are new to the credit world or have bad credit. Sable ONE stands apart from other secured credit cards because this card provides: 

  1. The highest credit limit of $10,0001 among all the secured credit cards in the market. Which gives users great flexibility to build or rebuild credit.
  2. Reports to all credit bureaus. In addition, Sable offers enhanced reporting on more data points than any other card so you can build your credit faster than anywhere else.
  3. Premium rewards and benefits like up to 2% cashback2, Sable Double cashback bonus3, Cell Phone Damage Protection2, Rental Car Insurance2, and more.
  4. A credit coach in the app. Individuals who are unclear about how to build/rebuild credit can simply follow the credit coach with clear guidance and transparent milestones.
  5. The fastest way to graduate to a traditional credit card, in as fast as 4 months. Moreover, Sable gives up to a $5,000 credit limit after graduating to a traditional credit card and offers a 100% security deposit back guarantee.
  6. Gives customers full control of their secured credit limit within the app, allowing them to build creditworthiness at their own pace and optimize for utilization.
  7. Sable does not check credit history during the account open process and charges zero annual or hidden fees, and no minimum deposits.

Getting a tax refund is exciting. However, if you use your tax refund wisely, you can put yourself on a path to a better credit score and greater financial freedom. Like I said earlier, an improved credit score and financial freedom come by creating healthier financial habits, and a secured credit card is one of the easiest ways to start. 







  1. Sable Secured Credit Card Cardholder Agreement
  2. Sable One Credit Card Rewards & Benefit Terms
  3. Sable Double Cashback Bonus Terms

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