DiscountAdvances – Payday Loans vs. Tax Refund Loans

What is a Tax Refund Loan?

For many people, a tax refund loan is an easy way to get tax refund money.

Tax refund loans are short term payday loans made against a customer’s anticipated tax return. The customer usually applies for a tax refund loan through a tax preparer. The payday loan amount is related to the amount of the tax refund.

A problem with a tax refund loan is the preparer might increase the payday loan amount to increase fees. This can create problems for the borrower if the refund is less than what they expected. The IRS is considering restricting tax refund loans, as they may encourage fraud.

Payday Loans are a Great Alternative

While tax refund loans might sound like a great way to get your money fast, payday loans from DiscountAdvances can offer the same benefits. When you take out payday loans, you'll always know the amount of our payday loan fees because we clearly state them on our website.

Unlike a tax refund loan, a payday loan is usually acquired in order to hold the customer over until his or her next paycheck. Since the customer usually knows how much their next paycheck is going to be, they have a better idea of how much they can borrow and be able to pay back. With a tax refund loan, a customer is not always sure what they will be getting back from Uncle Sam.

Payday loan companies encourage customers to have bank accounts that are open and have been in use for at least 90 days. Many consumers who take out tax refund loans do not have bank accounts. A payday loan from DiscountAdvances requires that the customer to have an active bank account and at least $1000 in monthly income or deposits.

Payday loans offer better solutions. DiscountAdvances' friendly customer service representatives are standing by to answer any questions you have about our payday loans. Call us today and find out if a payday loan is right for you!