Rapid Refund Loans May Not Be All Their Cracked Up To Be
You’re getting your taxes done and you’re offered a rapid refund loan. It’s enticing. After all, what’s wrong with getting your money right away instead of having to wait weeks or even months for the check from the IRS to arrive? In today’s instant gratification culture, we’re all about getting what we want and getting it now. But rapid refund loans may not be all they’re cracked up to be.
Ridiculous Interest Rates
When a tax preparer offers you an instant refund, they’re not doing it out of the kindness of their hearts. They’re doing it to make a profit off of you. Instant refunds, also known as rapid refund loans are just that — a loan. And like all other loans, you have to pay interest on that loan.
So what’s wrong with paying interest on a loan? Nothing. But you can pay up to 400 percent interest (yes, you heard me right) on these rapid refund loans. So unless you desperately need your tax refund right away, you might just want to wait the few weeks it takes the government to get you your check.