It’s Not Too Late For Refund Anticipation Loans
If you think your chance to get a loan against your tax refund ended in April, think again! If you’re one of millions who applied for the automatic extension and won’t be submitting their tax return for another several months, you can still receive a Refund Anticipation Loan if you have a current need for the funds you expect to get back when you file. Unlike the original, preparer-provided RALs, the new tax advance loans are available at any time, because you don’t have to supply a copy of your tax return or any proof of expected refund in order to be approved. The process is quick and simple and your chances of approval are excellent even if you don’t have a great credit history. Also unlike the refund advances provided by tax preparers, fees and interest are no deducted from the amount you receive, so the amount you request is the amount you’ll have available to use. Repayment will include the fees, but the terms can be more flexible since you make them yourself; this is different from the preparer-provided loans who direct the IRS to send your refund to them, so you never see it!
Refund Anticipation Loans Can Fill In The Gaps In Your Budget
The problem with borrowing money can be finding the extra cash in your budget to repay it! The advantage of a tax advance loan is that you’re basically borrowing money from yourself – since the refund is your money. Use it for whatever you need – whether it’s an unexpected bill, an car or household repair that can’t wait, or simply making ends meet during a difficult time. Depending on the timing of your loan, you may have to make repayments from your regular income, but knowing your refund is on its way to reimburse you for that, the end result is that the only cost to you is the interest fees you’ll pay for the convenience of accessing your funds early.
Bouncing A Check Can Cost More Than A Refund Anticipation Loan
One small miscalculation can create a virtual avalanche of overdraft fees – every careful budgeter’s nightmare! The same fee is charged no matter how small the payment or how little your account is brought into the negative, and as you can imagine a $30 fee on a $5 overdraft (just as an example) amounts to an extraordinarily high interest rate. Meanwhile, each fee pulls your account deeper into the red, making it harder for you to catch up and return to a positive balance. Many banks process each day’s charges from largest to smallest, ensuring that if you do exceed your balance they will get to charge you the highest possible number of overdraft fees. If you know that there’s no padding in your budget and there’s a chance of overextending your funds, a tax refund anticipation loan can actually save you money! The fees and interest on a small short term loan can be less than a string of overdraft charges, and also preserve your reputation with your bank.