Tax time. That annual dreaded season – but, not for you! After completing all the necessary forms and filling in all the government style boxes you get to the bottom line and not only do you not owe anything, the IRS owes you. Mentally you start spending your rebate. Bills are overdue or that brand new 42″ TV is calling your name. Waiting the 3 weeks for your refund holds little appeal so other options need explored.
H&R block will do your taxes for you, promising a larger refund, and issue your rebate immediately, less their fees. Other tax preparers may have the same option. There is no concern for applications for credit or credit checks since your actual refund goes right to the tax preparer. This is an excellent opportunity if you don’t plan on filing your own taxes and is actually even recommended by the IRS itself, as indicated on one of the articles on their website http://www.irs.com/articles/tax-refund-advance.
Many businesses look forward to loaning you money on your tax rebate. Many stores will happily give you the opportunity to spend your rebate at their store. Payday loan services are also an option, although generally less favorable. Depending on the store or payday service a credit check may not be necessary. Beware of using a payday loan service since the fee is usually advertised as 15%-20%, but because the short term of their loan agreements the actual APR is much higher. If, for any reason, you are unable to make your obligations a payday loan service will make your circumstances worse over time.
If you need the money immediately and didn’t use a participating tax preparer and don’t want to spend your money at a particular store that offers advances on tax rebates you can look into a traditional loan. Before choosing lenders for your loan, research current interest rates and the status of your credit score. Verify that any marks against your credit are valid. It is wise to regularly check your credit rating with the major credit reporting agencies for any surprises. Knowing what interest rate you can expect will help assure you get a good deal on your loan and give you a good understanding of what to expect.
If you are a member of a Bank or Credit Union start doing your lender research there. You will also want to check with other local and online vendors for comparing costs and rates to verify that you will get the best interest rate that you are eligible for. The interest rate you pay will depend on your credit rating and the individual institution. Make sure that you are aware of all the terms, conditions, and fees. Read carefully and ask about anything that you don’t understand.
The bottom line is that the best option for getting your refund, if you don’t obtain the services of a participating tax preparer, is to wait for your account to be credited or for the refund to arrive in the mail. If neither of those options suit your needs there are a lot of other alternatives for getting your refund early.