What are Tax Refund Loans?

Taxes

February 23, 2021

Blog Categories

If you’ve ever heard of a tax refund loan but have no idea what it is, you’re not alone. Simply put, tax refund loans are loans that are given in anticipation of receiving a tax refund. After filing your taxes, you could potentially go to a lender and takeout a loan for the amount of your expected refund.

What are the benefits of a tax refund loan?

With a tax refund loan, you can have access to your money sooner, rather than waiting for the government to process your return. When your return is processed, the government will send the funds directly to your lender, instead of you. If your return takes longer than expected, check the IRS “Where’s my return?” page. Getting a tax refund loan could be a way for you to get your money sooner, and have some flexibility in your spending.

What are the drawbacks of a tax refund loan?

Like all loans, there are fees associated with a tax refund loan. It’s also important to remember that if your return ends up being less than anticipated, you’re still responsible for the entire loan. For example, if you expect a return of $500 and take out a loan for that amount, but in actuality you only receive a $300 return, you are still responsible for the full balance of your loan.

What does World Finance offer?

At World Finance, we’re here to help take some of the stress out of tax season this year. We don’t just offer tax refund loans, we’ll also help you figure out and file your taxes. We offer remote filing, in-person filing, and drop-off filing, and right now, you can take advantage of $20 off filing fees. Visit or call your local branch to make an appointment to talk with one of our helpful team members.