Also referred to as refund anticipation loans, is a type of credit where the borrower is given money in advance and repay it using his or her tax refund. The loan can be given out by the banks or lending institutions. For instance, you can have emergency needs that can’t wait for the IRS’s funds to be released. Hence, it is solving a financial crisis before the government sends out the tax refund. Moreover, many taxpayers find a tax refund loan beneficial since they get access to the funds before the fund’s release.
Another advantage of the refund anticipation loan is that it is processed speedily. In comparison with the conventional loan, tax refund loan processing is faster. For instance, you can get your loan cash within 24 hours a maximum of 48 hours. On the other hand, the other financial products you are likely to get the money in a week or more. Therefore, a refund anticipation loan can help you out in a financial crisis.
Fills the Gap
As earlier mentioned, many people are having cash flow challenges. Therefore, the only solution they can think of is the money that they are given from the tax refunds. However, it may not happen instantly, since you are required to fill in several forms properly. Moreover, supporting documents are necessary since waiting for the release date could be too late to solve your emergency. In other words, the tax refund loans come in hand to fill the gap. Furthermore, with the supporting documents, you can have your needed cash instantly, enabling you to address the problem right there and then.
No Credit Check
There are inevitably so many types of loans in the market today. However, you have to remember that most of them need a credit check. If your history is not good, then your application is likely to be turned down. Therefore, if you urgently need cash, a tax refund loan will be the best option. Besides, the lender knows that you will have enough money to repay your loan since they will receive your tax refund directly. Hence, if you have trouble securing other types of loans, you will get a tax refund loan, perhaps with little or no discomfort.
Tax refund loans are secured loans since the lending institutions use your tax refund as collateral to take out a lump-sum loan. For this reason, they are easily approved. Additionally, depending on your lender, tax refund loans are relatively inexpensive. For instance, some reputable lenders offer 0% APR, no-fee refund advance loans on small amounts.