As the deadline to file income taxes gets closer, many who file early are looking at getting refund anticipation loans. An income tax refund anticipation loan is a way for taxpayers to get their money early, which can be an enticing offer.
Many taxpayers use these refund anticipation loans for emergencies, to pay off debt, or just to get their refund instantly so they can simply spend the money on whatever they wish, but is a refund anticipation loan a good idea?
There are refund anticipation loans available from a variety of tax preparation companies, but unless you go with a reputable tax preparer you are likely to get a high interest rate on your loan, but refund anticipation loans aren’t always that affordable from a reputable tax preparation company either.
No matter whom you choose to prepare your taxes, if they offer a refund anticipation loan, they want to make money from that loan. So, creating more debt for yourself, just to get money owed to you faster may not be the best idea. If you are looking into a refund anticipation loan, be sure it is in your best financial interest to obtain one and that there is simply no way for you to wait for your actual refund.