What Are the Pros and Cons of a Tax Refund Loan?
It’s always important to weigh the benefits against the downsides of any big financial decision. Before you take advantage of a tax refund loan, make sure you understand the facts about this kind of loan and how it may be a good choice or one better left for another time. The pros and cons of a tax refund loan tend to lean toward pros, but everyone is unique and has a different financial situation that needs to be considered first.
Pro – A Tax Refund Loan Gives You Cash When You Need It
An obvious pro to getting a tax refund loan is that it provides you with money. If you need cash to pay the rent this month, to put gas in the car so you can make it to work and not get your pay docked, to make sure your kid can get those braces, or for any other expenses that you just don’t have the money for right now, this loan can help. It is fast and convenient so that you get the cash you need when you actually need it, not a week or more later.
Pro – Bad Credit Applicants Are Considered for Tax Refund Loans
Unlike some other loans, a tax refund loan does not disqualify applicants immediately only based on credit score. A big bonus to applying for this particular loan is that if you have been denied in the past because of credit you stand a great chance of getting approved this time. All you have to do is try to get approved. It takes only a few minutes to apply, so even if you do get turned down you won’t have wasted much time. And, in most cases people do get approved for this loan, in spite of a poor credit score.
Pro – A Tax Refund Loan is Available Always
No matter when you need the extra money, these loans are always available to you. The lenders work throughout the year, so the loan is not just for tax season. They also work around the clock and over the weekends. The network of lenders is large enough to ensure that even if you apply on Sunday night or in the wee hours of Friday morning, you will get access to a lender and you will get your application considered.
Con – Only You Can Tell if You Can Afford a Tax Refund Loan
The only real con here, and this is true of any loan, is that the lender can’t determine if this is the right move for you. Only you can say if it makes sense to take out a tax refund loan right now and if you will be able to afford it and to make repayments. There are consequences of not repaying a loan on time, from paying more in interest fees to taking a hit to your credit score. It’s up to you to make the right choice about borrowing and no one else can tell you if it makes sense or not. So, take what you know about loans and your own finances, and make a smart, informed decision.