Beware of Tax Refund Loans

If you've got a refund coming to you, how and when will you get the money? Are you considering a tax refund loan from your tax preparer? Before you pull the trigger, make sure you understand the costs of those loans.

For most people, direct deposit is the way to go. The IRS processes refunds and sends them directly to your bank account, and you don't have to pay extra.

Tax refund loans get the money in your hands more quickly, but they cost a lot - about as much as payday loans in some cases. To find out how you pay for these loans and get ideas for alternatives, see How Tax Refund Loans Work.

Further reading:

• How to Set Up Direct Deposit