With tax season on the horizon, early filers can apply for a loan based on the amount of their anticipated refund. Caution, however, is the byword. Some of these loans are not what they appear to be.  Several tax preparation services are offering low interest loans , some with attractive finance charges to those filers eligible for tax refunds. If you can apply for either credit and need quick cash, you may want to consider filing your income tax return early and applying for an advance on your tax refund.

To request a tax refund loan, you will need to have your tax return prepared in an office. You will not be able to complete the return online by yourself. Because you will have your return done in an office, you will likely pay a tax preparation fee, which they will typically deduct from your refund. Another condition required to apply for a tax refund loan is, of course, eligibility for a refund. Certain tax preparers may require refunds to be of a certain amount, and these amounts vary by company. Once you apply for such a loan, obtaining the cash can be very quick, often within 24 hours.

While tax refund loans may appear to be great, you should be wary. If you are looking for a smaller short-term loan, you may end up paying an astronomical fee. For example, if you need a $500 loan to pay for a car repair and the tax preparation fee is $200, you could end up with an APR that is over 500 percent. That is much higher than even payday loans. Be sure to analyze the tax prep fee and make sure the loan makes sense before agreeing to anything.

An alternative to a tax refund loan is available to vehicle owners. Car title loans are a short-term solution when you require smaller amounts of money in emergency situations. Embassy Loans has assisted tens of thousands of customers with loans for a few hundred dollars up to a few thousand dollars. The application process is very easy and, on many occasions, car title loans can be processed and completed in as little as an hour. An auto title loan is a great way for those with poor credit to secure funds in a time of need. There are no credit checks, and borrowers still retain possession of their vehicles while they repay the loan. It’s possible to repay most car title loans within 12 to 14 months.