Definition: Tax refund loans are loans you get in anticipation of a tax refund. While tax refund loans help you in the short term, they can be hazardous to your financial health. Here’s the lowdown on tax refund loans.
Tax Refund Loan Providers
Tax refund loans are offered by tax preparation services. They know you'll get a refund, so they can be sure they'll get paid back. As a result, tax refund loans are a very safe bet for them.
Risks of Tax Refund Loans
While it's nice to get your money quickly, tax refund loans are rarely a good idea. They're technically called refund anticipation loans, and you can learn about the pitfalls on the page below:
The jist of tax refund loans is that you pay a lot. There are fixed fees and interest costs to pay, and most tax refund loans are relatively small. The high costs relative to a small loan make tax refund loans especially costly.Also Known As: Refund Anticipation Loans Work, Tax Return Loans
Examples:
I'm using a tax refund loan to get my refund money immediately.
