Tax Refund Loans - Good Idea?

Already doing your taxes? Nice job.

If you've got a refund coming to you, how and when will you get the money? Your tax preparer may offer a tax refund loan to get the money in your hands immediately. Before you pull the trigger, make sure you understand the costs.

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 to you 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
• Goodwill:  Keep More of Your Tax Refund