If you expect to receive a tax refund this year and need some quick cash, an instant tax refund loan might be something to consider. Available throughout the tax season, this loan lets you borrow against your expected refund and potentially forgo any fees.

In this guide from Alabama Title Loans, Inc., we will dive into tax refund advances, their benefits, where to find them, and how to get them. We will also explain alternatives to instant tax refund loans, such as payday loans.

What Is A Tax Refund Advance Loan?

A tax refund advance loan is a short-term loan that you repay via your tax refund. Typically provided from December to February, the amount you can qualify for ranges from $100 to $4,000, helping you cover unforeseen circumstances without acquiring additional debt.

Normally, they're dispersed within one working day on a prepaid card. However, some providers use direct bank account deposits. You'll receive it within several business days if this is the case. Once your tax refund is issued, the amount you borrowed will be deducted.

For most rebate advance loans, you must have your taxes filed by the loan provider. As such, you may pay a preparation fee. On top of that, the preparers may impose a minimum refund amount to qualify, and you'll likely only receive a part of your refund via the loan.

Where To Get A Tax Refund Advance

If you decide to get a tax refund advance, it’s essential to consider all of your options. Different loan providers will offer different rates and loan terms. Learn more about tax refund advance loan providers to determine which can best help you get the money you need.

Many companies offer instant tax refund loans, but the following three are the most popular:

1. Jackson Hewitt

Jackson Hewitt offers two refund advances: the Early Tax Refund Advance and the No Fee Refund Advance Loan. The former has a 35.96% annual percentage rate, while the latter has a 0% APR.

To get approved for the biggest Early Tax Refund Advance, your expected refund must be $4,600 or more. To access the No Fee option, the minimum expected refund is $3,600.

2. Intuit TurboTax

WebBank and First Century Bank fund the zero-interest Refund Advance loan offered by TurboTax. When you file your taxes through the provider, you can apply for a TurboTax refund simultaneously. If you're approved, you must open an account with Credit Karma Money to access the cash. 

Keep in mind that the minimum expected federal tax refund amount required to gain approval is $500. This allows you to borrow from $250 to $4,000 without incurring interest.

3. H&R Block

Like Jackson Hewitt, H&R Block provides two advances — the Emerald Advance and the Refund Advance — both issued by Pathward, N.A. The Emerald Advance works like a normal personal loan with a 35.9% APR. You may use your refund to pay the loan back or choose check, debit card, or money order.

The Refund Advance doesn't come with extra fees or interest. The only caveat is that you must file your taxes via H&R Block. Unlike the other providers we've mentioned, H&R Block does not specify a minimum expected refund amount.

The Benefits of a Tax Refund Advance

If you need to unlock cash for urgent personal expenses, an instant tax refund loan is one way of doing so. It allows you to access cash that's technically yours anyway, proving particularly beneficial when waiting for the IRS to process your return is inconvenient.

In addition, it's useful if you have a poor credit score and aren't likely to be accepted for a regular personal loan. Since the provider knows they're almost guaranteed to be repaid, tax refund loans are low-risk for them.

The following are some of the benefits of instant tax refund loans:

• Immediate access to funds
• No credit check
• Simple application process
• Some providers do not require fees or interest

How To Get A Tax Refund Advance

Now that you understand more about tax refund advance loans, you can begin the process of getting approved for one. While every provider may have a slightly different tax refund loan process, the basics remain the same.

Here’s how to get a tax refund advance and borrow against your tax refund:

1. File your taxes with the provider of the instant tax refund loan. Some lenders allow you to do it online, while others require you to head into their storefront to file them in person.
2. The preparer will look at your application. Typically, they won't only look at your return but also at your credit rating. 
3. Depending on the refund loan provider, you may need to open a prepaid card or checking account with a specific institution to receive your loan.
4. If you gain approval, you can access the funds on the same day.
5. When your tax refund comes in, the loan amount, alongside any extra charges, will be taken from the balance.
6. The provider deposits the leftover amount into your account. 
7. If your refund is smaller or arrives later than anticipated, you could end up owing the provider. Ask them about how you can repay them.

Borrow Money With Online Payday Loans In Alabama

Due to the strict eligibility requirements, you may not always qualify for a tax refund advance. That doesn't take away your need for rapid access to money. You can get a cash advance in Alabama to borrow money from a future paycheck.

At Alabama Title Loans Inc., we offer online payday loans that let you borrow $100 to $500 to fund emergencies like medical bills, veterinary fees, home repairs, or car repairs. You don't need to have a credit score, ensuring you can get the emergency money you need without undue restrictions. 

To get approved for a cash advance in Alabama, you need only five required items: your driver’s license, most recent pay stub, social security card, 30-day bank statement from your checking account, and a blank check for an active checking account in your name.

Here's the process for how to get online payday loans in Alabama:

1. Complete the online form. We also offer title loans, so make sure you select the right loan type.
2. Answer the phone to discuss loan terms with our representative. During the conversation, you can ask about requirements, loan amounts, repayment, and other details.
3. Bring your required items to the Alabama store location nearest to you. Once there, our loan rep will verify your requirements to ensure you have everything you need.
4. If you have the requirements and get approved, you can sign documents to complete the approval process. The in-person process can take less than 30 minutes, and borrowers can receive their money the same day or the next business day.

Get Online Payday Loans In Alabama – Borrow Up To $500 Today!

If you can't qualify for an instant tax refund loan but still require quick cash, you can always get in touch with us at Alabama Title Loans, Inc. Our online payday loans in Alabama are easy to get your hands on, and the whole process takes less than a day. Get your tax refund loan today with Alabama Title Loans, Inc. Fill out our simple online form to apply!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.