While several tax preparation companies offer 0% APR advances on your refund, that doesn’t mean they’re free. You usually still have to pay to have your taxes prepared, which can be upwards of $250 depending on how complex they are.
And most have deadlines some time in February. If you missed the cutoff date, your refund is on the smaller side or you just don’t want to pay to have your taxes prepared, consider these alternatives instead.
Personal loans are a good choice if you have one or two large expenses you want to pay for but your tax refund won’t cover it. Rates are typically low for borrowers with good to excellent credit, and you can find amounts up to $100,000.
SoFi is our top pick because of its competitive rates and large maximum loan amount — with no fees. It also gives its borrowers access to perks such as networking events and financial advisors. However, you’ll need to borrow at least $5,000. And you may be able to find lower rates elsewhere if you have excellent credit.
LightStream offers some of the lowest rates around, with no origination fees and a Rate Beat program to undercut competitors. You can get flexible loan amounts up to $100,000 for nearly any expense. But it’s geared toward borrowers with strong credit, and you can’t check your rate without affecting your credit.
Upstart considers more than just your credit, using education and employment history, so even borrowers with lower scores can qualify. Prequalification is available online without affecting your credit. But the application asks for extra details, and most approved borrowers still have scores in the high 600s.
Cash advance apps are ideal if you frequently find yourself short on cash between paychecks. They’re a low-cost way to get an advance on the hours you’ve already worked, and many can transfer funds into your bank account the same day you apply.
Most of these apps also don’t take your credit score into consideration, meaning they can be a good option if you’ve struggled to stay on top of your bills in the past.
Earnin lets you borrow up to $150 a day, or up to $1,000 per pay period with the EarnIn Card, with no subscription or mandatory fees. Your advance is based on hours you’ve worked, which you verify through your schedule, email, or GPS. Transfers take up to two business days, or you can pay $3.99 for instant access with Lightning Speed.
Cleo is great for freelancers and gig workers because you don’t need a minimum recurring deposit to qualify. You can get cash advances up to $250 once you establish an income history. The app has a $5.99 monthly fee, and same-day transfers cost $3.99.
Varo gives you a full 30 days to repay, more than double most cash advance apps. You can borrow $20–$500 with flat, transparent fees and no monthly, late, or credit-check fees. Same-day transfers go straight to your Varo Bank account, and you just need an active account with $800 in qualifying deposits.
Installment loans can be helpful if you aren’t able to get an advance on your tax refund and need money fast. Most lenders are willing to work with borrowers of all credit types, and many offer next-day funding. Just watch out for high rates and fees that can lead to APRs in the triple digits.
OppLoans is one of the less-expensive options despite its APR maxing out at 195%. It allows you to pay directly from your bank account or debit card — most lenders only do direct deposit. And since OppLoans reports your credit to the three major credit bureaus, you may be able to improve your credit by making on-time repayments.
The lenders in HonestLoans’ network offer loans up to $50,000. Since it’s a connection service, you can compare rates and terms from several lenders by filling out just one online form to help you find the best deal available to you. But while its minimum income requirement is relatively low, just keep in mind you’ll need a higher income to qualify for larger amounts.
NetCredit offers loans up to $10,000. While its APRs are capped at a high 99.99%, it’s relatively lower than where other short-term lenders max out. You’ll also have the chance to build your credit since it reports payment activity to TransUnion and Experian.
Read on for more answers to common questions about alternatives to tax refund advances.
A fully online application sets this provider apart from the crowd.
