Don’t Close Out Your Credit Cards
Believe it or not it can NEGATIVELY affect your credit score. If you close a line of credit, then it looks like you’re using MORE of your available credit, which also can DECREASE your credit score.
Also your credit score is influenced by the length of your credit history with a credit card. If you are in good standing with a credit card you have for over 10 years, this will be positively reflected with a higher credit score.
If you’re thinking about closing a credit card, explore other options instead:
A balance transfer could allow you to move your current credit card balance to a card with a lower rate.
If you don’t like your current credit card’s annual fee, ask your issuer if you can switch to a different card without one. But be careful not to carry a high balance on the new card because it could increase your credit utilization.
Don’t Splurge With Your Tax Refund
If you receive a tax refund the first thought shouldn't be 'hey with this extra money i'm going to treat myself.' Sure the refund is found money but that doesn't mean you should immediately consider spending it especially since you hadn't budgeted nor planned for it.
Rather you should consider putting into your savings account or use some of it to pay down existing debt.
Consider evaluating why you received such a big refund in the first place. This can be done with a mid-year withholding check-up. It's something I do for my clients and something i'd be happy to discuss with you.