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What We Want You to Know: Avoid Refund Anticipation Loans (RALs)

Tax season is just around the corner and at NuVision, we want to make sure you get the most out of your money. With this goal in mind, we recommend you avoid Refund Anticipation Loans (RALs).

A Refund Anticipation Loan is a loan made by a lender and is based on and usually repaid by your anticipated federal income tax refund. They are offered starting in January through the end of the tax season in April and seem like a great solution to get your refund money early.

However, RALs often carry extremely high interest rates. In addition, there are often other charges like electronic filing fees, application fees and a fee to cash the loan check. When all the costs of an RAL are added up, you can be spending more than 10% of your efund just to get the money a few days sooner.

RALs are also not guaranteed by the tax preparer. If there is a mistake on your refund, and your refund ends up being less than you thought, you will still owe the full amount of the RAL plus fees and interest to the tax preparation agency. If you can't pay it off immediately, there could be additional interest, penalties and other charges that you owe.

The mediocre benefits of RALs are not worth the risks involved. Your best solution is to file your taxes using the option to automatically deposit your refund into your bank account. Your refund will arrive days and/or weeks before a refund check. Or you can simply wait a few weeks to get your refund and not waste a good portion of your refund on fees.

NuVision offers loan solutions like the 9FOR9 Personal loan designed specifically for tax season expenses. Talk to a representative today to find out how you can get the money you need at the right price.

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