Jackson Hewitt advertises a** “Refund Anticipation Loan” **sevice. It’s where they cut you a check for your federal income tax refund within a couple days of filing. Of course, it’s a “loan”, so I’m sure that they have all kinds of fees for it. But, I’m a little short of cash right now, so it would be nice to have some money without waiting weeks to get my check from the IRS.
So, I’m wondering if any Dopers have used this service, or one like it. First off, you have to “qualify” for this loan. Anyone have any ideas of what you need to qualify? I mean, they’re pretty much guaranteed to get their money (I think the refund check goes directly to them) so what does it take to qualify?
Also, if any Dopers have gotten a Tax Refund Loan, how much in fees was taken out of your refund? Was it an OK deal?
Yes…I know I’m filing a bit late…but it’s no biggie…heck, I’ve basically given the gov’t an interest-free loan
I’ve done it on a few occasions. It’s EXPENSIVE!! Horrifyingly high interest rates. At the time, Mrs. Blue Sky and I were in financial straits and had to have the money yesterday, so we bit the expensive bullet and got the loan. Since then, we’ve gotten a handle on our finances and just wait the 2-4 weeks for the federal and state returns (which are directly deposited into our bank accounts).
If you don’t need the money rightthisminute, don’t do it.
I remember reading a little about this in Consumer Reports, and it seemed that you’d get a better interest rate from a loan shark.
I’m sure the tax guy will sell it to you as “it’s just a few bucks, and you get your money so much sooner”… but do the math: You’re borrowing X amount of dollars for Y amount of time, for Z fee. Convert that into an annual percentage rate, and I’m sure you’ll be surprised and offended.
Take a look. Every tax preparer is now hyping Refund Anticipation Loans. Do you think they’re doing this as a public service, or because they’re making money hand over fist?