Income Tax Loans – The pros and cons

Income tax loans are short-term loans against a potential borrower’s estimated tax return. Most people that consider applying for income tax loans need the money from their return immediately to avoid overdraft fees, past due bills, and utility shut-offs.

The pros of income tax loans:

The biggest benefit of an income tax loan is the “fast factor.” It takes up to 2 weeks for the IRS to mail a taxpayer his or her return. For many families who need cash, 2 weeks or more is just too long. When a person is approved for one of our income tax loans, they can expect the amount of their loan to be immediately deposited into their bank account and available to be used by the borrower within just one business day. Once their actual check comes in the mail, they can repay the amount they borrowed by simply depositing their refund into their bank account for the lender to receive the payment by draft.

The cons of income tax loans: An income tax loan isn’t a permanent solution for a person’s financial-related problems. If you don’t think you’ll be able to repay the loan or make timely payments, then an income tax loan probably isn’t for you. Income tax loans can become expensive fast if a borrower defaults. Above all, an income tax loan is a loan. You will have to pay interest and fees. If you can afford to wait for your return, then do so. If not, the benefits of getting your cash now may outweigh the interest and fees associated with an income tax loan.

For more information on our income tax loans and other financial services, please click the link.