How to Get a Tax Refund Loan

If you need the money from your tax refund before the check arrives in the mail, you can take out a refund anticipation loan or an instant refund loan. However, these short-term loans typically carry high interest rates, and many can be considered predatory.

Instructions

Difficulty: Easy

1. File through a tax preparation company if you need a refund anticipation loan. Not all online filers offer them, so you may need to call around to companies in your area.
2. Compare your options and learn the reputation of each tax preparer you are considering. You want the company with not only the lowest rates and best terms, but also the most solid reputation.
3. Get your taxes prepared. Once your tax preparer sees what your refund will be, he can offer a tax refund loan.
4. Check the interest rates of the loan you're offered. Make sure it is an amount you can afford. Discover all the terms of the loan and whether you will owe any additional amount beyond your refund.
5. Prepare to receive your money immediately. Due to the short nature of this type of loan, you should get your money the same day your returns are filed.
6. Check back with the company that provided your loan in about 10 days. Make sure the company has received your tax refund, and be certain you have no outstanding liability. If any issue has delayed your tax refund, repay the loan out of pocket to protect yourself from extra interest.

Tips & Warnings

• Refund anticipation loans are typically given for about 10 days at a time. 10 days is the time between when you file your tax return forms and when you can expect to get your tax return back.
• Consumer groups recommend avoiding tax refund loans. The annual rates on these loans are high, and companies offering them typically approach those who cannot easily afford them.
• Watch out for high rates. Interest rates on tax refund loans can reach 2000 percent. If your refund gets held up for any reason or is less than anticipated, you can wind up paying huge amounts of interest.