A Refund Anticipation Loan: What it is, and How it Works

Tax season is nearly upon us again and that means it’s time to start thinking about filing, deductions, year-end donations, and other fun stuff. So maybe that stuff isn’t so fun, but what is fun is your refund. Can you really wait until sometime in April to get that refund check though? You don’t have to if you know about refund anticipation loans and how to get them.

A Refund Anticipation Loan Gets You Your Refund Sooner

The basic idea behind this loan is that you get your tax refund sooner. Typically you have to wait until you file your taxes and then several weeks after that in order to get a check in the mail. Of course you can e-file and get your money sooner, but you still have to wait until you actually file. Whether you’re on the ball, filing early or you wait until April 15, you can get your tax refund in the next few days if you only apply for a refund anticipation loan.

This Refund Anticipation Loan Acts Like a Payday Loan

It’s true that you don’t need to have filed your taxes yet to get a refund anticipation loan. You can plan ahead and get that cash now so you can use it for pressing expenses. It works a lot like a payday loan: you apply, show that you have a regular income, show that you can afford the loan, and then you get approved. The cash is transferred to your bank account within about 24 hours, and then you get to spend it. Repay the loan as soon as you can to minimize your interest payments and the time you spend in debt.

The Application and Approval Process for a Refund Anticipation Loan is Easy

The process is as simple as going online to complete an application page or downloading an app to apply for this refund anticipation loan. Once you download the app you’ll be able to come back to it again and again, any time you need the extra cash. The approval part of this process is easy too. Lenders only need to see that you have a regular job and income and that your paycheck proves you can afford a small loan. You don’t have to demonstrate perfect credit or that you will have a refund coming in a certain amount.

You Can Apply for and Use a Refund Anticipation Loan Right Now

The best thing about a refund anticipation loan is that it gives you cash that you can use now. If you need money to pay this week’s bills, to make sure your lights stay on, to avoid getting evicted because of another month of late rent, or you have any other urgent expenses, you can rely on a refund anticipation loan to provide the money you need. And you get the cash quickly. If you apply now, there is a very good chance you’ll get the money tomorrow morning and be able to take care of all your bills sooner.

A Refund Anticipation Loan: What it is, and How it Works By Mindy Lobo - 10/31/17