We all know it’s tax season when the malls take down their holiday lights and we start to see The Statute of Liberty impersonator on every busy street corner waiving at traffic as if to say, “Get your taxes done!”
Of course, if you anticipate a refund, you’re probably very happy tax season is here and may already have plans for the cash you’ll be receiving. Hopefully you’re in the position to wait for the IRS to return your money, but in today’s economy you may need the cash and waiting for the refund might not be an option. If that’s the case, refund anticipation loans might seem awfully appealing.
Refund Anticipation Loans
What’s a refund anticipation loan? It’s when you simply sign a form with your tax preparer, file your taxes, pay a fee and walk out with cash in your hand.
While they might seem convenient, what you may not notice is the exorbitant annual percentage rate you just paid on that loan. So, if you really need the cash right away, take a little time and make sure you are not paying too much for it.
One way to accomplish this is to take out a small unsecured loan* with a credit union such as Truliant. There are solutions available to help you gain access to money without paying an arm or a leg. For instance, we have a loan that allows you to skip the first three payments, which should allow plenty of time for you to get your refund from the government and pay off the loan. This will significantly reduce your expenses and give you the money you need now.
About the Author: Troy Martens (aka, The Loan Guy) is the vice president of consumer and real estate lending for Truliant. He is responsible for existing loan products, new product development and overall loan portfolio risk.
*Loans subject to credit approval.
