Tax Refund Cash Advance Emergency Loans Same day Approval
- Tax advance Loans $1,000 to $35,000
- APR 6% to 36%
- Terms 90 days to 5 years
- same day approval
Tax Refund Cash Advance Emergency Loans
When you file an income tax return and a refund is owed to you by the government, it can take weeks or sometimes even months before you receive your refund check or direct deposit. The factors that could delay your tax refund payment are the method in which you filed your tax return and the number of errors that are on it. Any discrepancies on the tax return will cause you to wait at least 6-8 weeks to receive your refund after the problems are cleared up.
For some people, it may be no big deal to wait weeks for their refund. On the other hand, you may be in a situation where you are depending on that refund to pay your bills. Perhaps you need to pay your school tuition or you have to catch up on your mortgage or car payments. Whatever the reason may be, tax advance loans are the solution. These are emergency tax refunds that you can get right away before the government even issues your official refund out.
what exactly is a tax refund advance?
Well, the name speaks for itself. A tax refund advance is basically when you request a loan from a tax preparation service provider or some other third-party entity, such as a private investor, based on the amount of your anticipated tax refund.The reason these entities will likely agree to give you a cash advance on your tax return is because your tax refund is guaranteed by the government. This makes it a dependable source of collateral for the lenders who will have no problem issuing you the tax refund advance, even if it is a same day tax refund that you want.
How Much Can I Get with a Tax Refund Advance?
The amount of money you will eligible to receive through tax advance loans will depend on a few factors. First, the size of your expected tax refund will certainly play a role in how much you get approved for. Obviously, if you are expecting a $1,000 tax refund then you are not going to get approved for a $20,000 tax refund advance. The amount of the tax refund advance relies heavily on the amount of income you had for that year. This gives the lender a reassurance that you will be able to pay back the money plus interest.
Secondly, the investor or tax preparation service provider will generally have a limit on the amount they will offer for a cash advance on your tax return. Remember these entities are not banks and they are not typically in the business of giving out money to individuals. That is why if you go to a professional tax preparation service provider, like Jackson Hewitt or Liberty Tax, you will get no more than $1,300 for an emergency tax refund.
Even though there are usually no hidden fees or interest charges attached to loans issued by these organizations, you are required to have your income tax return prepared and filed through one of their employees in order to qualify for the loan. And, as you probably know, the costs of these tax preparation services start at around $200. This is a lot of money for someone to pay upfront if they make less than $20,000 per year.
That is why going to a private investor who solely deals in tax advance loans is the better option because you will be offered a same day tax refund that has a much bigger limit than what is offered by these other so-called professional tax preparation service providers.
Although these third-party entities are not banks, the tax advance loans issued work very similar to a bank loan. The only difference is these third-party lenders do not perform credit checks or background checks on you. In fact, you do not even need to verify your current employment to receive a same day tax refund.
Tax Loan and Terms:
For example, you will be offered much more flexible loan options from $1,000 to $35,000. These tax refund advance loans will have an APR that ranges anywhere from 6% to 36%. The exact amount of the APR on your emergency tax refund will depend on your income level, the amount of your expected tax refund, and the amount you are requesting to borrow.
The term on the loan can be anywhere from 3 months all the way up to 6 years. If the loan is a smaller amount, then expect the term for paying it off to be smaller. But if you borrow a bigger amount, like $35,000, then you will get around 6 years to pay it off.
The upside is that the bigger loans tend to have smaller APRs while smaller loans tend to have bigger APRs. So, if you were to borrow a short-term emergency tax refund of $1,000 with 30% APR and you had 12 months to pay it off. Then you would end up paying $300 in interest alone on top of the base amount.
To reduce this amount of interest, you would obviously want to pay back the money as quickly as possible. Your ability to do this would depend on how fast you get your official tax refund from the IRS.
How Fast Can I Get Tax Advance Loans?
The fastest tax refund is a same day tax refund. By getting a cash advance on your tax return, you can expect to get the money on the same day. These tax refund advances are also called “instant refunds” because there is virtually no waiting period. The investor or tax preparer that you go to will review your tax return and see how much of a refund that you are entitled to receive. Once that is done, a decision will be made right on the spot as to whether you are eligible to receive a same day tax refund and the loan amount that you want to borrow.
However, before you go filling out a refund anticipation loan application. The IRS has to approve your income tax return first before anyone give you a same day tax refund. So, you cannot request an emergency tax refund unless you have filed and accepted by the federal government yet.
If refunds like these were to be issued, it would increase the risk of the lenders being defrauded. That is why these lenders like to wait until the tax return has been officially filed and accepted first. Once that happens, you can request a same day tax refund at any point after that.
If you look on the internet for same day tax refund lenders. You will find numerous lending organizations that are neither banks nor tax preparation service providers. The only thing is they are not the actual entities that will be granting you the emergency tax refund. Instead, they are intermediaries having access to a network of private investors who will lend money for seeking tax advance loans.
This is how you would be able to borrow up to $35,000, which is clearly more money than what most people would get in their tax refund. But the reason these investors are willing to lend this much money is because they don’t want you to pay off the loan quickly. They want the loan size to be greater than the tax refund amount so that you will have to make payments on the loan over a certain period of time. Meanwhile, these private investors are making money off the interest of the loan.
About P2P Loans:
More than $1 billion has been borrowed through peer-to-peer lending in USA. So, this is a more common practice than most people realize. Investors typically take more risks with their loans than a traditional bank would. Because these investors offer same day tax refunds, there is no time to do credit checks on the applicant. Their sole decision to approve or deny an applicant is based on the tax return itself. If the applicant has a significant income amount and their tax refund advance is reasonable enough. Then the investor will trust the applicant enough to issue the loan.
If you can, try to contact p2p investors directly because the intermediaries will charge a finder’s fee. Some intermediaries may charge a fixed price of $100 to $300 while others may ask certain percentage.
Ask your parents, siblings, and distant relatives if they can give you a loan first. If they say no, then you can start searching on investor contact websites like personalloans.com, Prosper. Some of these sites may charge a small fee but they are the cheapest intermediaries around on the internet.