What's a Tax Refund Loan?

Doing your taxes so you can get your refund?  Kudos to you for getting an early start.  But don't be in too much of a rush to get the money.

Some tax preparation services offer tax refund loans that allow you to get cash when you file your taxes -- you don't have to wait for the IRS to process your return and send funds.  It may be tempting to use these loans, but they're notoriously expensive.  You'll have a lot less later, so how will that really help you?

Having the IRS send funds directly to your bank account is often the best option.  Direct deposit is surprisingly fast, safer than the mail, and free.

To learn more about these loans and why you should avoid them, see How Tax Refund Loans Work.

Further reading:

• How to Set Up Direct Deposit
• Goodwill:  Keep More of Your Tax Refund