Tax refund loans were always a bad idea but this year appears to be worse. Some companies stepped up their advertising this year with claims of large loan approval amounts. But now some tax preparers who use these services report that the majority of cases they submit are approved for only $500 refund even if the refund is much larger.
The fees charged seem to be in the $130 range so that’s an incredibly high amount to pay just to have a little money two weeks sooner than you would otherwise recite a tax refund.
I discourage clients from seeking these refund loans but I do offer a free checklist of ways to get your refund into your hands most quickly. Text me at 856-265-0306 with the word “refund tips” for a list of the proven ways to speed up your tax refund.