Understanding Refund Advance: A Guide to Getting Your Money Sooner

So you found yourself in a less-than-perfect situation with your finances and need a quick influx of cash? If your friends and family can’t come to the rescue, one option you may have is borrowing money from… yourself.

But how does it work? What is a refund advance, and who can benefit from it? This and other questions will be answered in this helpful guide.

After reading this article, hopefully, you’ll have no doubts about refund advances and how they work.

How Does Tax Advance Work?

Tax advance is another name for a tax refund loan. But it’s not your typical loan that consists of you borrowing money from a lender and then paying it off with interest. In this case, you’re essentially accessing your tax refund early.

In the simplest terms, refund advance loans are loans that are taken against your future IRS tax refund. They offer an opportunity to access your money earlier than it is scheduled in a standard tax refund period.

One considerable advantage of this type of loan is the fact that it is based on your anticipated tax refund. Meaning borrowers have a considerable probability of paying off a tax refund loan with no issues whatsoever.

The only exception to this is when you borrow more money than your tax refund shapes up to be. Even so, most lenders require proof of income before they issue a tax advance loan, ensuring the borrower has the means to cover the cost of a loan even in such an event.

A refund advance loan is a short-term loan, and once you get approved, you can expect to receive your funds even within 24 hours. Usually, they are transferred to your bank account or issued via prepaid card, depending on the lender.

Refund Advance Loans Terms

Since refund advance loans are dependent on tax refunds, they do adhere to some specific terms and regulations. Fortunately, these regulations are not very rigid, and refund advance loans are generally very accessible and easy to obtain.

A common occurrence is that these loans are typically issued close to Tax Day. This usually falls in April, and for this reason, advance loans are usually offered from December to February. 

This, however, is not a hard rule. Some companies present much more favorable loan terms, offering their loans throughout the whole year. This is the case for Income Tax Loans Now, where you can apply for a loan anytime you find yourself needing one. You don’t have to wait till December to apply for an advance loan, and you don’t need to meet any special criteria to qualify for one.

Who Can Apply for a Refund Advance Loan?

What are the criteria one has to fulfill to be eligible for this loan?

• Be of age: To apply for a refund advance loan, one has to be at least 18 years old. It’s due to the fact that minors don’t pay taxes and, therefore, cannot receive a tax refund.

• Present proof of income: As mentioned above, it’s normally required for borrowers to have a reliable source of income in order to be accepted for the loan. This ensures they possess the ability to repay the loan in cases when their tax refund cannot cover its cost in its entirety. Additionally, without an income, it would be hard to receive a tax refund, which is the base of this type of loan.

• Be a U.S. citizen or legal permanent resident: If you’re applying for a refund advance loan in the United States, it’s required that you have a U.S. citizenship or legal permanent residency.

• Have a bank account: Once you are approved for a loan, the money will be transferred to your bank account, so it’s important to have it set up before you apply.

How the Application Process Works

How does tax advance work? It’s very straightforward. The application process can take you less than choosing what to watch on a streaming service. The important thing to remember is that you don’t have to meet a long list of requirements to qualify for this loan.

Here’s what you can expect when you apply for a refund advance loan with Income Tax Loans Now, explained in a few simple steps.

Fill Out an Application

Like with any other type of loan, the first step to receive a refund advance loan is to fill out an online application. But worry not – this isn’t a terribly complicated process. In your application, you’ll be asked to include some personal information, confirm that you have a steady source of income and offer your bank account details.

Get Approved

Once you’ve submitted an application, you’ll have to wait to be matched with a suitable lender. This should take around 90 seconds, so you’ll know almost right away if you are approved for a loan.

Again, you have no reason to be worried, as a considerable majority of our applicants get accepted for a loan. We do not require any credit checks, so even with a bad credit history, there’s a good likelihood that you will get approved.

Sing Loan Agreement

You got your decision? Great! The next step is to sign the documentation sent by a lender. The loan agreement includes information about the sum you’re borrowing and all the costs associated with your loan. It’s important to read through it carefully, and in case of any doubts, ask the lender for clarification.

Have Your Funds Transferred

The last stage of the application process is the simplest. Once your documents have been filed and approved, you are left to wait for money to get transferred to your account. The funds should be accessible to you within a couple of business days.

How Much Does a Tax Refund Loan Cost?

What are the real costs of this loan? It might be difficult to give a straight answer to that question, as the interest rates can differ between lenders and depend on the sums of money you are borrowing.

Next to interest charges, you also might be subjected to fees, which increase the cost of a loan. The most reliable way to learn more about how much you’ll have to pay for a tax refund loan is by reading your loan contract.

But, generally, you may expect to pay up to 10% of your tax refund in fees. With short-term loans, it’s also not uncommon to see fees matching the annual percentage rates (APRs) of 100% or more. For this reason, it’s advisable to make any financial obligations based on your actual repayment abilities.

While refund advance loans are usually more affordable than some unsecured short-term loans, it doesn’t mean they are completely free.

Can I Apply with a Bad Credit?

Yes, of course! While some companies may consider your credit history when applying for a refund advance loan, that is not the case in Income Tax Loans Now! No matter your credit score, you may be eligible for a loan with us!

If you meet the basic criteria we mentioned in this article, there’s a high chance that you will get approved by one of our lenders, and from there, the road to accessing your tax refund earlier is pretty simple.

Final Thoughts

As you can see, refund advance loans are nothing complicated. These short-term, secured loans offer a good opportunity for accessing your tax advance earlier, which can come in handy in some more challenging life circumstances.

While finding the right lender is the most important and time-consuming step, the application process and receiving the money are not. So, if you find yourself needing some cash quickly, don’t hesitate to contact us. We will help you find the best, trusted lender. You’ll get your decision in less than two minutes, no credit checks required.

Learn more about us and what we can do for you today!

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