Credible Takeaways
- A tax refund advance is a type of loan that lets you access some of your expected tax refund early.
- Personal loans could be a better option if you need to borrow a larger amount of money, plus they are available year round unlike tax refund advances.
- Your tax refund may be less after filing; if your refund is less than your advance, you’ll have to pay back that money.
The average refund for the 2023 filing season was $2,972, according to the IRS. So far for 2024, the average refund is slightly higher at $3,145. If you're due a refund and would prefer not to wait for the money, you have options. One of which is a tax refund advance.
A tax refund advance is a low-cost (or free) loan that can give you early access to your refund, and it uses your tax refund as collateral. It can be a convenient way to get needed funds now, but there are some downsides to keep in mind.
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How a tax refund advance works
A tax refund advance loan lets you access some of your expected tax refund early — often within 24 hours, depending on the tax preparation company you choose. Many tax refund advance services also come with no interest or fees.
Once your refund is processed by the IRS, you’ll repay the tax company the amount you borrowed in advance while keeping the remainder of your refund.
You might qualify for a tax refund advance loan even if you have poor or fair credit.
Good to know
Unlike other types of credit (like credit cards or personal loans), you won’t have to worry about paying higher interest charges if you have less-than-perfect credit.
However, there are some drawbacks to consider:
- Your tax refund could be less than you expect. Your tax refund advance is based on your expected refund. However, keep in mind that the IRS could deny certain deductions that you claimed or find errors that reduce the amount of your refund. If your refund turns out to be less than you expected, you’ll have to repay the difference to the lender.
- You typically can’t access your full refund. Most tax preparation companies only let you borrow a portion of your expected refund. For example, if your expected refund is $3,000, you might only be eligible for a $1,500 loan.
- There’s usually a cost to file your tax return. While tax refund advances are often advertised as having 0% interest and no fees, there's still the cost to file your return. Tax preparation companies typically charge you a fee to file your returns, which you’ll have to pay to qualify for a tax refund advance. Prices often start at $30 to $40 for a federal tax return (depending on the company), with additional fees if you need to file a state return or have a complex return. If you don’t pay these fees upfront and choose to have them deducted from your refund later, you might have to pay another fee to get a tax refund advance loan.
- There might be fees to load your refund onto a debit card. Many companies will load your refund advance onto a debit card. However, these cards might come with additional fees, such as for ATM or over-the-counter withdrawals or account inactivity.
Learn More: How to Get a $5,000 Loan
Where to get a tax refund advance
Many tax preparation companies offer tax refund advance loans, including the following major businesses. Note that none of these are Credible partners.
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| | $500 to $6,000 (depending on loan type and customer relationship) | |
| Same day as filing, if approved | Debit card: Within 24 hours of approval Direct deposit: Within 1 to 5 business days after approval | Typically within 3 hours of approval |
| | $0 to 2.5% of loan amount (depending on loan type) | |
| Must file a return through H&R Block Must submit a loan application to MetaBank (H&R Block’s partner lender) Must expect a sufficient tax refund Must provide ID | Must file your taxes with Jackson Hewitt If applying for Early Refund Advance Loan, must provide income verification | Must e-file your taxes with TurboTax Must be approved for a Turbo Visa Debit Card by Green Dot Bank Refund must be $500 or more Must be 18 or older Must have a U.S. address that matches the address on your tax return Must not live in IL or NC |
| Jan. 4, 2021 to Feb. 28. 2021 | Early Refund Advance: Dec. 14, 2020 (returning clients) or Dec. 16, 2020 (new clients) to Jan. 17, 2021 No Fee Refund Advance: Jan. 2, 2021 until Feb. 21, 2021 Go Big Refund Advance: Jan. 2, 2021 to Jan. 31, 2021 | |
Check Out: Where to Get a Personal Loan
Personal loan vs. tax refund advance
If you need to borrow money, especially if you'd like a longer time to repay it, a personal loan could be a better option. Personal loans typically offer higher loan amounts than tax refund advances and offer repayment periods from one to seven years (or more, in some cases).
Tip
The time to fund for a personal loan is generally a week or less, though some lenders might get you your money as soon as the same day you're approved. And unlike tax refund advance loans, personal loans are available at any time of the year.
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If you’re considering a personal loan vs. a tax refund advance, here are several points to keep in mind:
| | |
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| $600 to $100,000(with Credible partner lenders) | Typically $200 to $4,000
(Possibly higher, depending on the company) |
| Might come with origination fees | Generally no origination fee or APR (Though there might be a fee if you don’t pay your filing charge upfront) |
Credit score requirements | Typically need good to excellent credit (670 and higher) (Though some lenders provide options for poor and fair credit) | All credit scores accepted (Including no credit history) |
| Typically within 7 business days (Depending on the lender) | A few hours up to five business days (Depending on the company) |
Tip
If you take out a personal loan instead of a tax refund advance, you could use your tax refund to pay off your loan later on, too.
If you decide to get a personal loan, be sure to consider multiple lenders to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes. It won't impact your credit, but prequalified rates aren't offers of credit. You'll need to formally apply for that. Once you do, your credit score could be impacted.
Check Out: How to Prequalify for a Personal Loan
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Read full reviewOverview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full reviewOverview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full reviewOverview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewKeep Reading: Are Personal Loans Tax Deductible?
Other tax refund advance alternatives
If a personal loan or tax refund advance doesn’t seem right for your needs, you might be considering other fast loan options, such as payday loans, pawn shop loans, or car title loans.
However, while these same-day loans might get you quick cash, they should only be used as a last resort. These types of loans typically come with sky-high fees and interest rates — often in the triple digits.
Plus, you’ll generally have to repay the loan in a matter of weeks, which might not give you enough time to pay it off without getting further into debt.
Learn More: Are Payday Loans Safe?
Tip
Even if you have poor credit, you might still qualify for a personal loan.
Some lenders even specialize in bad credit personal loans that you might be eligible for. Just keep in mind that these loans generally come with higher interest rates.
Another option is applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Having a creditworthy cosigner could help improve your chances of getting approved for a loan.
Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
No matter which loan option you choose, it’s a good idea to consider how much the loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator below.
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Meet the expert:
Kat Tretina
Kat Tretina is a freelance writer specializing in personal finance. Her work has been published in The Wall Street Journal's Buy Side, U.S. News, and Money.com.