Monday, July 24, 2017

4 Things You Need to Know about Getting a Refund Anticipation Loan

4 Things You Need to Know about Getting a Refund Anticipation Loan


Before you dive in and take out a tax refund anticipation loan, there are some important things you need to know. No loan should ever be taken out lightly, without thinking about how it will impact your finances, what it will cost, and how you will use the money. Loans can be great for getting extra cash, but understand what you’re getting into so you can make the right choice and be a smart financial consumer.

1. A Refund Anticipation Loan Can Provide Cash for Any Need


A refund anticipation loan represents money, no matter what you need that money for. This is the basic purpose, whether it’s related to taxes or not. When you need money, this loan can provide it. A lot of people use these kinds of loans to cover daily expenses until the next payday comes around, but others use the cash from these loans to pay for sudden and unexpected expenses, or to pay down debt from more expensive sources. You can use the cash any way you want.

2. You Can Get a Refund Anticipation Loan any Time of Year


Although these loans reference taxes and refunds, you can actually access and get approved for refund anticipation loans at any time. During tax season, before the new year begins, or even well after traditional tax season is over, you can get this loan. You don’t even have to have a refund coming from the government to get approved. You just need to apply and show that you have a job and an income that allows you to afford this small loan.

3. Bad Credit is No Roadblock to a Refund Anticipation Loan


A lot of people like to use these refund anticipation loans when they actually have a refund on the way. It does show that you will eventually get the money you need to repay the loan, but you can also get approved on the strength of your job history and income. This means that credit score is not an issue for our lenders. They don’t do traditional credit checks to approve lenders, so you can have a lower credit score and still get the loan you need.

4. A Refund Anticipation Loan is More Affordable than You Might Think


Some people who could really benefit from this type of lending too often avoid getting a refund anticipation loan because they assume they can’t afford the costs. While it’s true that a refund anticipation loan may have higher interest rates than a bigger bank loan, there’s a good reason for that. This loan is a short-term loan and the amounts of the loans are typically small. Even with what seems like a high interest rate, the overall expense of the loan is small and reasonable. You can probably afford this loan, so calculate the cost before you reject it as too expensive.

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