A startup dedicated to building a more inclusive credit system recently released new financial guidance tailored for consumers with no or thin credit histories on what to do with their federal tax refunds.

According to the third update for this filing season from the Internal Revenue Service, the average refund is coming in about 10% higher than last year at $3,804.

With that figure in mind, TomoCredit made these seven suggestions. They’re based on how TomoCredit has trained a proprietary personalization artificial intelligence engine during the past seven years, using real consumer insights to help individuals build credit more effectively and confidently.

TomoCredit said its seven-step plan can help consumers use their refunds to build credit responsibly, focusing on steady improvement over 30–90 days:

Step 1: Eliminate the risk of late payments

Step 2: Turn on autopay (at minimum, for minimum payments)

Step 3: Pay down credit card balances to lower utilization

Step 4: Build a small emergency fund buffer

Step 5: Keep new spending predictable

Step 6: Apply thoughtfully and avoid rapid-fire credit applications

Step 7: Choose a credit-building tool aligned with your goals

“About a decade ago, it was hard to imagine AI guiding your tax refund decisions and credit-building plans,” TomoCredit founder and CEO Kristy Kim said in a news release. “Today, with Tomo, that vision has become accessible to everyone, helping make credit more inclusive for all.”