Get Your Money Faster: How Tax Refund Loans Can Help You Get Your Refund Sooner

Tax refund loans, also known as refund anticipation loans or tax refund advances, are short-term loans for those who have filed tax returns and are expecting a refund. These loans are typically available to eligible taxpayers at the beginning of each year, usually through mid-to-late February, as per a report by Capital One on January 10, 2023.

If you need cash while waiting for your income tax refund, some tax preparation services — including Jackson Hewitt, H&R Block, and TurboTax — offer 0% interest tax refund loans. (Photo: nerdwallet.com

To obtain a tax refund loan, individuals must file their tax returns with a tax preparation service and complete a tax refund advance form. The amount that can be requested varies by service, as do the costs associated with each service. For example, some services charge a fee unless the loan is for a certain amount and set a minimum amount that must be borrowed.

The advantage of tax refund loans Is that they do not require a credit check and are fast funding options. However, they also come with disadvantages such as fees and interest charges. You may also be obligated to open an account with the service to get your money, according to Capital One.

Tax refund loans are offered by various tax preparation services, including H&R Block, Jackson Hewitt, and TurboTax. It is important to do your research and check the Better Business Bureau website to see if the company is accredited and has good ratings from past customers.