One of the pros of having or using this loan option is convenience
This is almost required in exchange for getting a loan now or in the future. Other requirements may include credit criteria income verification, as well as the tax refund amount. If the refund amount does not reach the minimum amount required, you are not eligible for this loan.
Requirements for an installment loan are less strict, especially if the borrower has poor credit. However, a higher interest rate is much likely to be expected here. Since your credit score is unfavorable to the lender, you can expect stricter parameters and a thorough credit check. Well, you really can’t blame lenders for being like that. On the other side, at least through this process, you will have an excellent interest rate.
First off, congratulations on being resourceful and optimistic amidst your financial situation! This is all thanks to the tax refund cash advance emergency loans.
One of the cons of this loan option is that you can’t apply for a higher amount
Through this loan, you are practically just borrowing money from yourself. There is also no more paperwork and other requirements to prepare just to qualify. Well, there might be some, but it will highly depend on your lender.
The full loan repayment will automatically happen once the refund had been processed. Therefore, you will no longer get into a situation where you have to pay interest fees or monthly repayment. Good thing that there is this loan option as it will save you time from waiting and being able to solve your problem as soon as possible.
The amount you can loan should be within the amount of tax refund you would be receiving. In most cases, available loan amounts are under $2,000 only, but who knows if you will be able to get a higher loan from other lenders. It will still be up to you if you can manage to find a lender with better options.
Have you ever wondered how much will this loan cost you? It is just reasonable that you are already thinking in advance on the possible costs you need to repay once approved. While you are just waiting for your tax refund to be processed, it is still better to know how much it costs and other underlying charges.
Almost all of the tax preparation service providers offer this loan option without any interest or fee for the amount that you borrowed. Wait, before you jump for joy here. It doesn’t mean that they have stated it is free; it is 100% free. The cost of this loan is already embedded in the price of their service. For instance, you hire a company to file taxes on your behalf, you might be paying them $59 to do so, but it is already way higher than what they usually charge.
With this, you might want to be aware of the fees and the hidden fees on a tax refund loan. You might think that it will not cost you if it is issued through a debit card. Well, the truth is, there is still a small cost that comes with it. Reality check: nothing is free in this world, especially if it talks about the loan, tax preparation, and the provided service.
Therefore, depending on the loan you are applying for, you should be expecting a change from its price. It could be at a reasonable price, or it may cost you even more than you imagined.