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2 Bumps

Refund Anticipation Loan?

My SO &I are thinking about getting an RAL. We are in a tight spot financially&this seems like our only way out. It will be filed in just his name (Im in a custody battle with my ex& neither of us can file taxes claiming our daughter until courts settled). Both our credit is shot, we have no way to borrow money, this seems like our only chance.

Has anybody gotten on of these loans? How do they work & would you recommend them?

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WonderMom2008

Asked by WonderMom2008 at 8:05 PM on Nov. 28, 2010 in Money & Work

Level 7 (153 Credits)
Answers (9)
  • You might not qualify if your credit is shot because eligibility is based on your credit as well as other qualifications.
    gumby11883

    Answer by gumby11883 at 8:09 PM on Nov. 28, 2010

  • I would highly recommend against one. You can get your refund back so quickly now that there is no reason to pay an arm and a leg to get it back a week or so sooner. Usually the RAL company Jackson Hewitt, Liberty, or some other tax return company charge a very large portion of the return. What do you need this money for that you cannot wait a week or two or three to get it?
    tootoobusy

    Answer by tootoobusy at 8:10 PM on Nov. 28, 2010

  • Do NOT do it, it is a LOAN. just file your taxes regularly, you can get the tax return very quickly. Some of the loan rates are like 20% or higher and if your refund doesn't cover the whole thing, you will be paying a lot more. if you have a basic tax return, you can get a check in 10 days if you file online.
    lilblu399

    Answer by lilblu399 at 8:29 PM on Nov. 28, 2010

  • I would suggest you hold off and not do the RAL because they charge quite a large fee for doing it and that is more money that you can have to yourself if you just hold on for another month or two. There are many qualifications you have to pass to get one too, which seems like a waste of time. I never did one but a friend of mine did at HR Block- they charged over $500 to process everything!!! My tax lady only charges me $150 ish, so to me it sounds better to have that extra money to keep.
    Sharell8710

    Answer by Sharell8710 at 8:31 PM on Nov. 28, 2010

  • Im gonna jump on the bandwagon here and say DONT DO IT!!! it is an anticipation loan meaning something could go wrong and then what? Your stuck paying back a loan until you fix your taxes and such!!! You can get your refund back in like two weeks!! So by the end of January if you file on the 15th and get your W2s by then!! Heck I think you can even use your last paystub...that would be a better route than getting a loan hun! I know your in need but seriously just try to work out some kind of payment plan..its only like 2 months....pay what you can but keep creditors and such informed!!! Dont create more debt! youll end up with more money back to spread around just being patient!
    sweetstkissez22

    Answer by sweetstkissez22 at 10:19 PM on Nov. 28, 2010

  • You can get your taxes done for very little. There are places that will help you for nothing. You can even go to your federal tax office and they will do them for you. If you go online you could probably do it yourself. If you are having money problems, do not throw the money away.
    tootoobusy

    Answer by tootoobusy at 10:23 PM on Nov. 28, 2010

  • I don't really know anything about them. But, like with any loan, make sure you understand what your interest rate will be, how much your monthly payment will be, how long it will take to repay back, if there are any penalties, ect.
    HotMama330

    Answer by HotMama330 at 11:16 AM on Nov. 29, 2010

  • The interest rates charged on the loans are insanely high! it would honestly be better for you to get a loan somewhere else and then pay it back with your tax refund. That being said, the best option would really be for you to not get a loan at all. Have a garage sale, put stuff on ebay and Craigslist, sell plasma, work an extra part time job (retail during the Christmas season?) babysit, clean a home, mow a lawn, or shovel a side walk... just some ideas.

    Hope things turn around for you soon.
    Erica_Smerica

    Answer by Erica_Smerica at 12:31 PM on Nov. 29, 2010

  • Here's the thing. If your credit is lousy, you don't have many options for loans, right? This RAL may not have good rates and may be really costly to you in the long run but it may be your only option, right? If you can find any other options, this RAL may not be the best idea - it will likely have high rates, maybe a fee for processing, etc. If it is not associated with a tax company like H&R Block (that files and checks your taxes for you) - it is just another loan, so your credit will determine eligibility.

    Another option you may think about - Filing your taxes without claiming your daughter that is beig contested in court.... you can get your refund faster by filing right away, and you can always file an ammendment later if you are judged able to claim her. Just something to think about. Good luck to you!

    Tonya
    .science.mom.

    Answer by .science.mom. at 1:25 PM on Nov. 29, 2010

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