The True Cost of Tax Refund Loans

The True Cost of Tax Refund Loans

During tax season, many people need help preparing their taxes. Some of these tax preparation services also offer ways to receive your refund faster via RALs and RACs. RALs, or Refund Anticipation Loans, are short-term, high-risk, high-cost loans, usually 1-2 weeks in duration. These loans are secured by your tax refund and include costly fees and high interest rates, which reduce the overall amount of your refund unnecessarily.

Source: Generations Federal Credit Union

Add a Comment

Login or register to post comments


PorterElsen's picture

The economy is gradually getting better, but most American customers are still feeling the pinch in their accounts. A new study claims that a record number of taxpayers plan to put their tax refunds into savings this year and give up any splurge spending. Source for this article: More Americans plan to save tax refunds