Best way to use my tax refund to pay off credit cards

Credit Card
1

Need some advice on the smartest way to handle this…

I have three credit cards:

  • Capital One Venture (29.15% interest, balance $4100, minimum payment $140)
  • Capital One Savor (0% interest until Nov 2025, balance $775, minimum payment $25)
  • Care Credit (26.99% interest, balance $2000, minimum payment $70)

My tax refund is $3800. My first thought was to throw it all at the Venture card, leaving a $300 balance. Is that the best move, or should I pay off the smaller ones first? Would love to hear what others think.

2

I’d go with the Venture card since it has the highest interest. Knocking most of it out now will lower your monthly payment and make it easier to pay off the rest.

3

Ashwin said:
I’d go with the Venture card since it has the highest interest. Knocking most of it out now will lower your monthly payment and make it easier to pay off the rest.

That’s exactly what I was thinking. Just wanted to see if there’s a better way.

4

I’d clear the Savor and Care Credit first, then use the remaining $1000 to either start an emergency fund or put toward the Venture.

Take the $95 you were paying on the other two cards and use that to chip away at Venture.

5

@Milo
Why pay off the Savor when it has 0% interest for another year and a half?

6

Eli said:
@Milo
Why pay off the Savor when it has 0% interest for another year and a half?

It’s the debt snowball method—paying off smaller balances first gives a sense of progress. But everyone has their own approach.

7

@Milo
Mathematically, it makes more sense to hit the highest interest rate first. That way, you save more money long term.

8

Highest interest should be your priority. Minimum payments will take forever to clear the balance.

See if you can transfer the Care Credit balance to a 0% card. If you do, pay it off before the promo rate expires because the interest can pile up fast. Just be mindful of transfer fees.

9

@Eli
Yeah, Venture has the highest rate, so I figured that was the smartest move. Just wanted to make sure I wasn’t missing a better strategy.

10

I’d pay some down but keep a little aside for emergencies. It’s good to have a cushion in case something unexpected comes up. Could also use some of it to get ahead on bills.

11

Pay off Venture first, but if your Care Credit promo period is ending soon, clear that so you don’t get hit with back interest. Once you pay one off, put that freed-up money toward another card.