Is A Tax Refund Loan With Bad Credit Right For You?

You never know when you fall into a situation where you need a sum of money for the short-term. You can use this money to invest in new car. The problem is that you have a bad credit history, so you know that you will not qualify for any traditional loan. You have filed your income taxes and you are expecting to get a refund, but the refund is taking a while to arrive, and you need cash right away. If you are in this situation, do not despair. There is a way for you to get the money you need. You can apply for a tax refund loan with bad credit.

Some tax services will actually advance a loan to you if you qualify for a refund. The loan does not have traditional terms with an interest rate. Instead, the lender claims your refund through your tax return.

How much you can borrow in this type of loan will depend on how big of a refund you are anticipating.

Only the tax service that prepared your taxes for you can offer you this type of loan, and they determine how much you are able to borrow. Some lenders allow you to get a loan up to the amount of the refund. Some places only allow you to borrow a percentage of the refund that you are expecting.

This loan can be helpful to people who filed early who usually get a tax refund. It is also helpful those who have bad credit because there is no credit check involved. The lender knows that the loan will be repaid by the tax refund. So there is less risk for the lender.

The loan might not carry an interest rate, but you do need to pay a fee to your tax service to prepare your tax return. So if you get a tax refund loan with bad credit from your tax preparer, the loan is really not “free.” However, it is a viable option to get money if you have not received your refund yet.