According to the IRS, the processing of refunds has become so rapid there is no longer a reason for consumers to seek out Refund Anticipation Loans (RALs) as they have in the past. This, according a to a statement released in August of 2010, is the reason for the IRS decision to stop supplying the debt indicator, a number that banks say has allowed them to make informed decisions about potential lending pitfalls in the past.
For consumers, however, the “10 days doesn’t make a difference” thinking isn’t a commonly held assumption. Many consumers, as evidenced by the millions who have sought out RALs in recent years, are determined to get their tax refund cash as soon as rapid cash possible. In the past this meant opting for some type of RAL, whether instant or “classic” –a version that generally took 1 to 2 days. While these loans are still available, they are much harder to come by and many consumers who have poor credit histories are being turned down –despite having received approval in the past. A recent Pew research study revealed that over 60% of people who had experienced a negative economic effect during the recent recession were forced to access their savings or retirement income to make ends meet. Is it still possible to find a loan if you’ve already been or are afraid you will be turned down by an RAL? The fact is, there are people who are finding cash advance loans necessary.
For Many Taxpayers, Access to Refund Cash is a Necessity
These same consumers are often in need, some desperately, for quick cash. Whether they need the funds for emergencies such as dental work or unforeseen vehicle repairs, unexpected expenses such as a higher than normal utility bill, or to avoid bank penalties or late fees on their monthly expenses, the difference of ten days can have a substantial effect on their financial outlook and personal well-being.
Despite Roadblocks, Access to Quick Cash Is Possible
The many taxpayers that are finding the door closing on RALs may not be aware of alternative sources for quick cash that they can spend as they see fit, and repay with the funds available from their tax refund. Today, cash options aren’t limited only to people with perfect credit scores or those who can afford to wait for the traditional loan process to take place. Access to quick cash is possible through a payday loan. Normally repaid with your next paycheck, a tax refund that is on its way to you gives you more fund sources from which to repay the loan. You should have a plan in place as to how exactly you will repay before taking on any loan. A tax refund, if properly budgeted, should give you the money you need to repay a payday loan in full at the agreed upon date.
Let your lender know of when you expect your tax refund to arrive. Always be clear and upfront with the lender about your financial means so that their representatives can work with you on the best solutions to your cash flow problem.