On their website it states that you can get your refund with a money advance loan check up $2500 if you file now before you get your W2’s. I have done my taxes on TurboTax.com (have not filed anything yet) and estimate that I should get back about $3800. So if I go to H&R Block and do the advance loan thing and they do determine that my refund is around $3800 do they give you a loan check for $2500 and send a check for the remainder of your refund after you take in your W2’s? Any tax experts know how this would work out?
Dec
16
Question about the Instant Money Advance Loan from H&R Block?
Published under $300 Instant Loan by admin.
There are 3 Responses to “Question about the Instant Money Advance Loan from H&R Block?”
#2 JQT - 22 December, 7:17 AM
If you don’t need the money immediately, don’t take out this loan. The APR for this advance loan is greater than 36%, and not to mention it is another inquiry on your credit report and therefore lower your credit score.
However, if you must have the money now. Go back to get the return done as soon as you get your W2. So that you will accumulate additional interest on the outstanding loan.
When you go to an H&R Block office, they will first estimate how much money you’ll receive on your tax return then help you apply for the loan. Most people receive only a loan that is a fraction of their return.
For example, if your estimated return is $3800 you might only get approval for $1900. They will take away about $45 in finance charge and $30 in processing fee (if you choose to get a pre-load MasterCard, the processing fee is waived).
Once you get your actual return done, they will take $1900 to pay back the loan, their tax preparation fee and other fees if you choose to get the money before IRS send you the money.
As I said, if you could wait try not to get the loan, RAC, RAL or IRAL. File the return after you get your W-2 and wait 2-3 weeks for IRS to direct deposit the money into your account.
Best wishes.
#3 madiver - 23 December, 1:23 AM
I could not tell you about the loan. I do suggest that you look at the fees behind the loan, the interest, and the fees for tax preparation. Add everything up. This could really take a good chunk out of your return. Make sure that it will be worth the cost.
no. what happens is they estimate, using your last pay stub of the year, how much you will get as a federal refund when you do file. based on that they give you a loan through the same bank that does the RAL. if the loan is for, say 2500, the fees are taken from that so you may only get a check for about 2390 or something. then, when you get your w2(this is the nice part)you can either file through them or efile or file the paper way. then, you pay back the 2500 loan. you keep the difference. again, they do not file your taxes now, they just use the pay stub as a guidance to know you will be able to afford to pay them back once you get your taxes. you have until feb. 19th to pay them back.