Get a Tax Refund Loans with Bad Credit History

Get a Tax Refund Loans with Bad Credit History

Most often, lenders check your credit score before giving you a Tax Refund Cash Advance, but they also pay attention to other factors, so there is still a chance of obtaining financing.

 

Everyone can find themselves in a difficult life situation and need additional funding like personal loan. Unfortunately, most Americans do not have emergency savings to meet their expenses on their own, so they are forced to look for alternative sources of funding. Now you can apply and receive Tax Refund Loans. What's more, if the preparation service you are using offers such loans, that means you can get an interest-free advance. Most often, these loans do not require a credit check and are fairly easy to obtain. However, this option is not always a good solution. Keep reading for more details.

 

What Is A Tax Refund Loan?

A Tax Refund Loan is a short term type of financing from $200 to $4000 that you take when you are already expecting a refund from the IRS. So the loan amount will be deducted from your refund after you receive it. Most often, loans are offered from December to February.

However, in order to get such a loan, you must first have all your taxes prepared by the company that offers you a loan. The minimum amount may vary depending on the company or lender you select.

If you choose to apply for this loan, your tax agent will verify your credit, income and return. Based on this information, you will be able to receive money to your card or bank account. It is also important to note that a temporary bank account is opened for the tax refund. Thus, when a tax refund comes, the loan amount and interest are deducted automatically.

 

How Does A Tax Refund Loan Work?

As already mentioned, when you file your return, you also file for a tax refund advance (in the event that they are offered by the tax preparation service you’re using). If you are approved, then you will receive the money and will be able to dispose of it as you wish. Financing time will depend on the lender and how you want to receive the money.

It is also important to note that traditionally such loans have fairly high interest rates, but now some tax preparers offer them at a 0% interest rate.

 

Tax Refund Loan Requirements

In order to receive this type of funding, you must also meet certain eligibility criteria. They can vary, but most often if you meet the requirements listed below, then your application will be approved almost instantly:

•    Citizenship. Of course, in order to receive Tax Refund Cash Advance, you must be a US citizen or an official resident.

•    Age. You must also be at least 18 years of age to qualify for this loan.

•    Income. To be eligible for approval, you must have a regular monthly source of income.

•    Bank account. To be approved, you also need an active bank account that accepts direct deposits.

•    Contact details. To approve your application, the lender will also ask for information such as phone and email.

 

Where Can You Get A Tax Refund Loan?

Most likely you know that now there are various tax preparation services offer tax refund loans. Below you can take a look at the offers of several large companies and compare them in order to understand which one suits you best:

1.      Jackson Hewitt. This company offers several funding options from early refund loans that you can get in December to no-fee refund loans in January. It is important to note that the maximum loan amount for early refund loans is $1000 and the interest rate is 35%. If you can wait until January, then a loan from $3,500 with an interest rate of 0% will be available to you.

2.      H&R Block. If you apply in January or February, H&R Block can also provide you with a loan of up to $3,500. Loans financed by Metabank can be $250, $500, $750, $1,250 or $3,500. The loan amount depends on how much of a refund you get for your taxes.

3.      Intuit TurboTax. Depending on the tax refund, you may also qualify for loans of $250, $500, $750, $1000, $1,500, $2,000, $2,500, $3,000, $3,500 and even $4,000. It is also worth noting that if you get approved, you will receive the loan immediately on the Turbo Visa Debit Card. However, you should be aware that Turbo Tax loans are also only available during certain months.

Read more: Unemployment loans with no job verification

 

Is A Tax Refund Loan Good Idea?

Of course, it is impossible to answer this question unambiguously, since it directly depends on your financial situation. If you're in trouble and need money, it's a good idea to reach out to friends and family first, and ask for an advance at work. If you have no one to turn to, then this option can be your salvation. You will be able to get cash quickly and cope with a difficult life situation.

However, this option is not always a good offer, as interest rates and commissions can be quite high. Thus, sometimes you should wait until the IRS processes your refund instead of applying for funding. Weigh the pros and cons to make the right decision