Finance 101: Tax Refund Loan Dangers

CHICOPEE, Mass. (Mass Appeal) – In this edition of our Finance 101 series, we learned all about Tax Refund Anticipation Loans . Financial Counselor Todd Christian from Cambridge Credit in Agawam explained what we should know.

Who offers Refund Anticipation loans?

  • Jackson Hewitt- Offers anticipation loans of up to $1,300 the day they file your tax return for you and upon approval. From the IRS.  As long as you receive your refund via an American Express Serve card or a Wal-mart e-gift card then there are no fess for the loan and no interest.
  • Liberty Tax-Offers  advance loans in the amount of$500-$1300 for tax payers who qualify.  The loans are secured by the tax refund and are available in the form of a check printed in the office, pre-paid MasterCard or direct deposit. These loans are available from Jan.3rd– Feb. 28th.
  • H & R Block- Offers the Emerald Advance line of credit of up to $1000 starting in November, and must be paid back by February 15th   this is a line of credit NOT a onetime loan.

Get your refund sooner:

  • File Early- You can file as early as Jan. 1st IRS starts accepting returns on Jan. 23rd
  • Have all your information together– Impatience could cause an error delaying your refund.
  • File Electronically- Filing by mail adds about 4 more weeks to the 21 days
  • Use direct deposit- the quickest way to receive your refund