A tax refund advance is a loan that is offered to taxpayers based on the amount they are expecting to receive as a tax refund. This type of loan can be helpful for those who need quick access to funds and cannot wait for their refund to arrive. However, not everyone who applies for a tax refund advance will be approved. In this article, we will discuss the reasons why someone may be denied a tax refund advance and what to do if this happens to you.
Not Enough Information
One of the reasons someone may be denied a tax refund advance loan is a lack of information. When applying for a tax refund advance, the bank looks at your filing history. At McGrant Tax and Bookkeeping, we make sure that the information you submit to the relevant financial institution that approves the loan is correct and most of the time you have an answer about whether you are approved or not within a couple of hours.
Ineligible Tax Refund Amount
Another factor that can lead to a denial of a tax refund advance is an ineligible tax refund amount. Tax refund advances are based on the amount of your expected tax refund. If the amount you are expecting to receive is less than the minimum amount required by the lender, your application may be denied. When we file your tax return at McGrant Tax and Bookkeeping we can check your eligibility by letting you know of the tax refund amount that you will eventually receive from the IRS. That way you can make up your decision and discuss with us whether it makes sense for you to apply or not for a tax advance loan.
Owing Debts
If you owe debts, such as past-due bills or taxes, this can also impact your ability to obtain a tax refund loan advance near me. Lenders will take this into consideration when evaluating your application. They may deny your request if they believe that you may use the funds from your tax refund advance to pay off your debts instead of repaying the loan.
Here are a few steps you can take if your application for a tax refund is denied:
Consider Other Options
If you still need access to funds, you may want to consider other options, such as a personal loan or a credit card cash advance. Keep in mind that these options may have higher interest rates and fees, so be sure to compare your options before making a decision.
A tax refund advance loan near me can be a practical option for those who need quick access to funds. However, not everyone who applies will be approved. If you are denied a tax refund advance, it may be due to a lack of information, an ineligible tax refund amount, or owing debts.
*Fast Cash Advance is an optional tax-refund-related loan and is not the actual refund. All loans have an Annual Percentage Rate of 35.99%.*
