4 Key Differences between a Personal Loan and a Tax Anticipation Loantraditional personal loan may have its place, and the kind of person who can benefit from one, but a tax anticipation loan is often a better option. Here are some important differences that you need to take into account as you plan on borrowing money this tax season.
. A Tax Anticipation Loan Can Get Your Refund to You Sooner.This year especially, following the partial shutdown of the federal government, a tax anticipation loan makes sense for many people. You may have a refund on the way, but it could take weeks or more than a month even, to get to you. IRS workers are getting caught up, but most refunds are expected to be delayed. With this loan you can get your refund cash sooner. And while a traditional personal loan can get you the money as well, a tax loan is specially designed to get you that money you’re owed, fast.
2. With a Tax Anticipation Loan, Don’t Worry about CreditMost personal loans will require that you have a certain minimum credit score before you can be approved to borrow. This limits who can get approved and who can actually get the cash they need. If your score isn’t great, you could easily be denied when applying for a more traditional loan. But, with a tax anticipation loan, you are judged more on your income and when you receive a paycheck than your credit history. If you work and earn you have a great chance of being approved. And your credit score won’t be a factor that gets you automatically rejected.
3. Get Money Faster and More Conveniently Than with a Traditional Personal LoanFor a traditional loan you need to go to a bank or similar institution, in person and during business hours, to get an application. Then you have to wait a while to get approved and to get your loan funded. With a tax anticipation loan you can get online and apply at your convenience, at any time of day or night, seven days a week. And, because the loan is offered online with money transfers to fund the loan, you get cash faster.
4. Borrow Only What You Need with a Tax Anticipation Loan
4 Key Differences between a Personal Loan and a Tax Anticipation Loan