A Tax Refund Loan Can Make Financial Emergencies Disappear

There are all sorts of reasons any of us might suddenly be in need of extra cash. Sometimes they’re happy things, like impromptu reunions or family events or celebrations, and other times they’re less welcome, such as when the car breaks down or when your toddler brings home a virus from daycare and you lose time from work getting your family healthy again. If this happens during tax season and your refund is on its way, that’s great – but what if it’s at another time of year entirely? You can still borrow against your tax refund, using a tax refund loan to get the funds early, making payment to the lender in order to minimize the interest and fees – and still receive your full refund from the government when it arrives. Instead of spending your limited time and emotional energy worrying about a financial shortage, get the cash fast and take care of the problem so you can get on with your life as productively as possible.

The Internet and Electronic Processing Improved How A Tax Refund Loan Happens

Income tax refund advances used to get your refund to you a few weeks before the government would. It was useful mostly if you were in very dire circumstances and couldn’t wait even two or three weeks to get that cash – and were willing to pay high fees and interest in order to access it early. Over the past decade or so, as security and encryption became more advanced, the spread of the internet into the business and financial services realm became a reality. Most of us probably check our bank balances online regularly, and even pay our bills through various websites. Processes that used to take days now take only minutes, and tax refund loans are no exception. The application can be transmitted to the lenders instantaneously, evaluated within minutes, and approval information provided to you right in your browser while you wait. Documentation can be reviewed and signed electronically as well, so there’s no time lost printing, signing, and faxing your acceptance.

A Tax Refund Loan Saves You Cash Money and Improves Your Credit Score

Tax refund lenders know you have options, and that’s why their fees are more reasonable than you might expect. If you’re facing ongoing late fees or overdraft fees due to being behind on bills, there’s an excellent chance that you’ll come out ahead by borrowing against your tax refund in order to get caught up, even after the loan interest is taken into account. Making home or car repairs early, before they become more urgent and expensive, is another way that borrowing can actually save you money in the long run. In addition, the payments you make to the lender will be reported to the credit bureaus as positive, on-time payments, which ultimately will help to improve your credit score and make you eligible for better interest rates on traditional credit. If you’re one of the millions of Americans working to rebuild your credit, tax refund loans can be one of many small steps that have a big impact.

A Tax Refund Loan Can Make Financial Emergencies Disappear By Eric Knapp - 3/30/16