What is A Tax Loan?

A tax loan is an advance on the income tax refund you’re anticipating receiving shortly after filing your tax return. You borrow those funds ahead of time for a fair and reasonable amount of interest and fees, in order to use the funds in a way that benefits you to pay for or do now, rather than later. Banks do not offer tax loans; they began as a product offered by tax preparation companies – and now since so many financial opportunities have moved their services online, companies like Income Tax Advances have flourished since getting a tax loan online is so much faster and more easily available than those that are tied to a tax prep company and limited by their restrictions. For example, online tax loans can be accessed before you’ve even done your tax return, whereas tax preparation companies require you to have your return done by them or at least electronically filed by them in order to use their advance loan services.

How Do I Apply For A Tax Loan and How Long Does It Take?

When you see how quick and easy it is to apply for a tax loan online, you’ll wish you had done it years ago! Since the entire process is completed online, there are no limits to the day or hour at which you can apply. Unlike more traditional loans that require a visit to a bank branch or tax prep office, you’ll use your computer or smartphone to fill out a short questionnaire on the website. Approvals take only 90 seconds – literally days faster than traditional loans. The lenders use their own criteria instead of the standard credit check and credit score, so as long as you meet their standards you have an excellent chance of being approved – even if you have had problems in the past that caused damage to your credit score. All the terms and details will be provided before you accept, and all it takes is an electronic signature and a quick phone call or email from the lender, and funds will be deposited to your bank account the very same day. It takes a day or so for the funds to clear your bank, but generally you can access them the next business day – also days faster than traditional options.

Is It Safe To Apply for a Loan Online?

The hazards of sharing information online are well-known. There are many types of scams online, as well as methods of “hacking” into databases and intercepting data in transit between computers. Nonetheless, most of us have become very comfortable with shopping online, checking our bank balances and even paying bills. We know that some sites have better security measures than others, and we trust those sites to keep our data safe. The tax loan websites use the same type of security systems that other financial websites do, so your data is encrypted when traveling from your device to the servers. Nobody can access that information other than the intended recipient – anyone who intercepted it would receive only garbled characters.

What is A Tax Loan? By Eric Knapp - 4/20/16