Definition: Tax return loans are loans you get in anticipation of a tax refund. While tax return loans help you in the short term, they can be hazardous to your financial health. Here’s the lowdown on tax return loans.
Tax Return Loan Providers
Tax return 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 return loans are a very safe bet for them.
Risks of Tax Return Loans
While it's nice to get your money quickly, tax return 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 return loans is that you pay a lot. There are fixed fees and interest costs to pay, and most tax return loans are relatively small. The high costs relative to a small loan make tax return loans especially costly.Also Known As: Refund Anticipation Loans Work, Tax Refund Loans
Examples:
I'm using a tax return loan to get my refund money immediately.
