Every Tax Loan Question You Have, Answered
Tax time can be stressful because you feel pressed to get this awful chore done of filing your taxes. But then on the bright side, you may just be getting a tax refund back. It feels like free money, and you have a million ways you want to use it. Then, of course, you realize it won’t be arriving any time soon and that’s a big let-down. What you can do in the meantime is take advantage of a tax loan and get your refund sooner.
A tax loan is a way that you can get that money sooner. You may need it because the IRS is in no rush to send out the money you are owed. And, if you make even a small error on your tax return, that refund could be delayed even further. If you asked for an extension, it could be several months before you see your refund cash. So, you may want to consider tax loans, but you don’t know anything about them. Let us help answer all your questions.
What is a Tax Loan?
A tax loan is a loan that you can get when you are ready to file your taxes and when you think or know you’ll get a refund from that filing. You may want to get your refund sooner than the government will fund it, and that is why you might turn to a tax loan, also known as a tax anticipation or refund loan.
You don’t have to have proof of a refund on the way to get this kind of loan, but many people feel more comfortable taking out the loan knowing that they will be able to repay it with the refund. A tax refund can be a great way to take care of expenses, but when you have no idea when it will arrive or even if it will be delayed, it doesn’t do you much good. This is why many people use tax loans.
What is a Rapid Refund?
A lot of tax preparation services offer rapid refunds, and this can be confusing. It does not mean that you will actually get your refund sooner. It means that the service is offering you a tax loan. They prepare your taxes for you and then offer you a loan for a fee, and this acts like a rapid, or a much faster refund than you would otherwise get.
The term is actually trademarked by one particular tax preparer, but they are not the only ones that offer this benefit. You can do your taxes yourself, which will save you money, and then turn to a service like Income Tax Advances and get your very own rapid tax refund. Even if you haven’t filed yet, this service will provide you with a tax loan if you meet the right basic requirements.
Who Offers Tax Loans?
There are multiple services, companies, tax preparers, and lenders who may offer you a tax loan, but Income Tax Advances is one service that you can rely on to get you a quick refund based on your tax filing. This is a service that is online and that connects you to a lender that specializes in helping people get approved for quick, small loans just like these income tax loans.
The service is available online, although it is not a tax preparation service. You may or may not have already filed your taxes when you apply online for an Income Tax Advances loan. It doesn’t matter if you have or not; either way, you can get approved and get the refund that you expect to come your way eventually. You can also apply for your tax loan through our service by using a mobile app on your smartphone.
How Does a Tax Loan Work?
The process of getting a tax loan is simple. You only need to understand a few basic steps in order to get this loan and make it work to your advantage. The first step is the online or mobile app application. Complete a simple, short page of information that gives us the details a lender will need to get you approved, and submit it to be connected to that lender.
Once you have gotten approved for the loan your lender is available to talk you through it and to make sure you understand the terms and answer any questions. You don’t have to talk to the lender; if you are ready to get your loan, just e-sign the official document. But, if you want to be really clear on the terms, you can talk to your lender on the phone, even though this is an online loan.
After getting approved and making the loan official, the next step is the transfer of the money. Your lender moves the cash to your bank account, and once your bank has made it available to you, you can access and use it. When your tax refund comes in, make sure it gets deposited to the same bank account. Your lender will draw from that account to repay your loan so that you don’t have to remember the due date or worry about missing it and paying late fees.
Is the Loan Based on My Expected Tax Refund?
A tax loan is generally based on taxes and your expected refund, but it doesn’t have to be. The refund you expect to get from the government is a good guideline for how much you can borrow responsibly. For instance if you are getting about $1,000 back in a refund, it doesn’t make sense to borrow $2,000. If you do, you may struggle to repay it all.
That being said, your lender is not likely to make your refund amount, or proof that you have that amount coming from your tax filing, a requirement of getting approved. There are other factors your lender will consider together to make sure it makes sense for you to borrow responsibly: your income, your history with other loans, and your job history. Approval is not guaranteed, but most people who apply do get approved easily.
Can I Get Approved with Bad Credit?
Yes, you can get approved for a tax loan through Income Tax Advances with a credit score that is less than perfect. While we cannot guarantee that your credit score won’t be checked or won’t be considered at all in the process, our lenders generally do not use a traditional credit check. Instead, they use a proprietary calculation with several factors included to determine if you can be approved for a tax refund loan.
This is a big relief to a lot of people because many have low credit scores. A few mistakes with money when you’re younger can have a big impact on that core, causing you to struggle going forward for years. A bad credit score may hold you back from a number of loans, but it doesn’t have to prevent you from getting your rapid tax refund.
When Will I Get Cash from My Tax Loan?
If you wait for the IRS to send you the refund you’re owed, it could be quite a while. If you check with the IRS website, you’ll see that it can take three weeks for the money to get to you. And there is no guarantee that you will even see it that quickly. If you made a mistake on your tax return, or if you were forced to ask for an extension, the wait time goes up even more.
You can get that money sooner, though, and all it takes is a tax loan through Income Tax Advances. Our service is fast because it is online and because approval is simple and streamlined. The lenders we connect you to for free are experts at getting borrowers approved, so from application to official loan will be about an hour or less.
Then, when you get your cash depends on when you apply, but generally you can expect to have access to the money by the next morning. Your lender makes the transfer quickly, but it is up to your bank to make the cash available. That typically happens by early the next business day. So, if you start now, you could have your cash refund tomorrow morning.
A tax loan is much what it sounds like, but there are more important details that go into these loans than most people realize. By finding out more about them and what you need to do to get one, you have put yourself in a great position for getting your tax refund sooner. Now is the time to start thinking about tax filing, although you don’t have to rush to get it done. You can get your tax loan at any time and start putting your refund money to good use now, not months from now.