subject: Bad Credit Loans Loan In Canada Clarification Of Bad Credit Payday Loans Part Thirty Nine [print this page] There are many alternatives to applying for bad credit payday loans. One of these alternatives is an instant tax refund loan. Instant tax refund loans are also known and referred to as rapid refunds and also as twenty four hour refunds or forty eight hour refunds. These refunds are all treated as a type of loan. Even the traditional financial institutions refer to these tax refunds as loans. There are quite a few lending businesses that offer these refund loans including some tax preparation service companies. The way that a tax refund or rapid refund works is that the borrower gives the loan company, lending company or tax preparation service their W2 and the lending company then calculates an estimate of what the borrower's tax refund will be on their completed tax form. The lending company will then grant a loan to the borrower which is equal to the tax refund that the borrower will eventually receive from the tax man, minus the lending company's loan fees and charges.
As these tax refunds loans are virtually the same as bad credit payday loans, the company that calculated the borrowers tax refund will keep the borrowers tax refund when it arrives and then deduct the loan and the associated fees from the tax refund before giving the balance of the tax refund back to the borrower. In essence it is the same as a bad credit payday loan except that the source of income is not the funds that should be placed in the borrowers account to pay back the loan but it is the money that will be returned to the borrower by the tax man that will be the source of income to pay back the tax refund loan. Therefore the principle of a payday loan, compared to that of a tax refund loan, is exactly the same. Tax refund loans have exactly the same advantages and disadvantages as bad credit payday loans.
Tax refund loans are also assigned abnormally high interest rates, like bad credit payday loans, as a direct result of the loan fees and charges that are assigned to the tax refund loan. The annual percentage rate of tax refund loans can range anywhere from seventy one percent to seven hundred and one percent which is the same scenario for bad credit payday loans. As is the case with bad credit payday loans, tax refund loans also have interest rates attached to them that are much high than most credit card and car loan interest rates. So, are there benefits to paying this high interest rate for tax refund loans worth it? One of the advantages is that the borrower will receive their money eight days earlier than they would receive it from the Receiver of Revenue or the Internal Revenue Service (IRS). However, the Revenue or the Internal Revenue Service (IRS) would obviously send the borrower their money free of charge.
To read about the various types of Canada loans available at BHM Financial or to apply directly online for a Canada loan in any one of the Canadian provinces namely, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan, visit the loans in Canada website at bad-credit-loan-in-canada.com. You can also text chat with a BHM Financial loans consultant now, online, about your Canada loan, by accessing this link Canada loans text chat.
