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Just like the stores had Easter candy out before Valentine’s Day was over, tax time is coming soon. April 15 – or 17 – thanks to that oh-so-generous government extension that was granted for the filing of 2011 returns – is only a couple months away.

For many families, tax time is not as painful as it could have been, since last minute measures were enacted to protect some tax credits that may put money in your pocket. But before you get too excited about how to spend that money, we’d like to suggest doing something painfully responsible with your tax return.

We know, the dream vacation or the new car would be a lot more fun.

But a good tax return can really help to turn a bad credit score into a good one, and taking advantage of tax time in such a practical way doesn’t mean you have to give up your dream – just postpone it for a year. You’ll not only improve your credit score, but what financing you do get the next year will cost you less because of it. And really, given how quickly tax time comes each year, the time will fly by.

Depending on the size of your return, you can either pay off some smaller credit card balances completely or you may want to pay off enough on the balance of each of your credit cards to make sure they are each at less than 50% of the limit available. There is no one measure more critical to your credit score than keeping at least 50% of the credit line free.

In the short term, your tax return might by you some fun, but in the long term, if you put it to work for you by putting the return toward your credit card balances, it can significantly change your financial future. Better credit scores mean lower interest rates, better auto insurance rates, and better refinancing options for your home. Better credit ratings can even mean getting that job versus being overlooked (except in California, where it is now illegal to use credit scores in making hiring decisions).

This tax season, invest in yourself and your financial future. And next year, you can send us a postcard from Europe as you enjoy your dream vacation that is costing you less thanks to better credit!

If your boss offered you a $100 a month raise, would it make a difference in your life? Almost certainly, no matter what your current income level, an extra $100 per month would come in handy.

You don’t have to wait for your boss to offer you a raise to change your standard of living, and tax time gives you a chance to give yourself a raise.

If you have survived the tax season and the check really is in the mail – or more likely, headed by direct deposit to your account within a couple of weeks, think fast – how are you going to spend the money?

Do you have a list of things you’d like to buy? A big screen TV? A used car you’ve had your eye on?

When a windfall comes your way, the first thing you may think of doing is spending the money, but there’s something better you can do with the windfall that is almost like giving yourself $100 a month raise: pay off or pay down a credit card.

Why? Paying off a credit card with high interest rates not only immediately affects how much you’re spending each month on high interest minimum payments, but it also improves your credit rating, and when you improve your credit rating, the money you do have to borrow costs you less.

Consider trying to purchase a new car with a credit score hovering around 560. The car dealership can either laugh you out the door, or offer you a payment plan that includes a 7.5% or higher interest rate. With better credit, you could get a 2.9 – 3.5% interest rate. The difference? $1200 per year or more!

Raising your credit score is a slow process which means that you will have to wait to buy the things you want right now, but consider the things you’ll afford in the future, without going in to debt for them.

Rather than spend the tax refund money immediately, take some time to go through the pile of bills on your desk and make a note of the ones that have the highest interest. Pay as much as you can afford into the one with the highest interest rate, paying it off completely if you can.

One tax return or financial windfall can be enough to get you started on the path to debt freedom. Once there, you can reward yourself by using your free cash to buy that TV or a brand new car. Invest in yourself now, so you can actually enjoy your money later.