Credible takeaways
- A tax refund advance is a type of loan that lets you access some of your expected tax refund early.
- A personal loan could be a better option if you need to borrow an amount larger than your refund — and unlike tax refund advances, loans are available year-round.
- Your tax refund may be less after filing; if your refund is less than your advance, you’ll have to pay back that money.
The IRS estimated the average 2025 federal tax refund at $2,065 in February. If you're due a refund and would rather not wait for the money, you could try a tax refund advance.
A tax refund advance is a low-cost (or free) loan that can give you early access to a portion of your refund, using your entire refund as collateral. It can be a convenient way to get needed funds now, but there are some downsides to keep in mind.
How a tax refund advance works
A tax refund advance loan lets you access some of your expected tax refund early — often within 24 hours, depending on the tax preparation company you choose. Many tax refund advance services also come with no interest or fees.
Once your refund is processed by the IRS, you’ll repay the tax company the amount you borrowed in advance (often automatically deducted from your processed refund) while keeping the remainder of your refund.
You might qualify for a tax refund advance loan even if you have poor or fair credit.
Good to know
Unlike other types of credit (like credit cards or personal loans), you won’t have to worry about paying higher interest charges if you have less-than-perfect credit.
However, there are some drawbacks to consider:
- Your tax refund could be less than you expect. Your tax refund advance is based on your expected refund. However, keep in mind that the IRS could deny certain deductions that you claimed or find errors that reduce the amount of your refund. If your refund turns out to be less than you expected, you’ll have to repay the difference to the lender.
- You typically can’t access your full refund. Most tax preparation companies only let you borrow a portion of your expected refund. For example, if your expected refund is $3,000, you might only be eligible for a $1,500 loan.
- There’s usually a cost to file your tax return. While tax refund advances are often advertised as having 0% interest and no fees, there's still the cost to file your return. Tax preparation companies typically charge you a fee to file your returns, which you’ll have to pay to qualify for a tax refund advance. Prices often start at $30 to $40 for a federal tax return (depending on the company), with additional fees if you need to file a state return or have a complex return. If you don’t pay these fees upfront and choose to have them deducted from your refund later, you might have to pay another fee to get a tax refund advance loan.
- If you have the advance loaded onto a debit card, it could carry additional fees, such as for ATM or over-the-counter withdrawals or account inactivity.
Learn More: How to Get a $5,000 Loan
Where to get a tax refund advance
Many tax preparation companies offer tax refund advance loans, including the following major businesses. None of these are Credible partners.
Must submit a loan application to Pathward, NA. (H&R Block’s partner lender) Must expect a sufficient tax refund Must provide ID | Must have or open a Credit Karma Money checking account Refund must be $500 or more Must be 18 or older Must have a U.S. address that matches the address on your tax return Not open to residents of NC, CT, or IL | |
Check Out: Where to Get a Personal Loan
Tip
Jackson Hewitt also offered tax refund advances, but the deadline has passed.
Filing early
Forget about April 15 — if you’re trying to get a tax refund advance, filing your federal return in mid-April will probably be several weeks too late.
Depending on the provider, tax refund advance applications may be available starting in December or January and remain open through the end of February. For example, you can apply for a 2025 tax refund advance from H&R Block and TurboTax through Feb. 28. Jackson Hewitt stopped accepting 2025 applications on Feb. 16.
It leaves you with a narrow window to (a) file your federal return to see how much your expected refund will be and (b) apply for the tax refund advance, so file your taxes as soon as possible.
How to avoid high fees
Here are some tips to avoid having fees whittle away your tax refund advance:
- Choose a provider that doesn’t charge loan fees, processing fees, and so on.
- Don’t buy optional products or services from the provider, such as tax software.
- Avoid early advance offers that may come with interest and finance charges.
Personal loan vs. tax refund advance
If you need to borrow money, especially if you'd like a longer time to repay it, a personal loan could be a better option. Personal loans typically offer higher loan amounts than tax refund advances and offer repayment periods from one to seven years (or more, in some cases).
Tip
The time to fund for a personal loan is generally a week or less, though some lenders might get you your money as soon as the same day you're approved. And unlike tax refund advance loans, personal loans are available at any time of the year.
If you’re considering a personal loan vs. a tax refund advance, here are several points to keep in mind:
(Some lenders provide options for poor and fair credit) | ||
Keep in mind that most personal loan lenders don’t charge prepayment penalties. This means you likely won’t have to worry about paying extra fees if you pay your loan off early.
Tip
If you take out a personal loan instead of a tax refund advance, you could use your tax refund to pay off your loan later on, too.
If you decide to get a personal loan, be sure to consider multiple lenders to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes. It won't impact your credit, but prequalified rates aren't offers of credit. You'll need to formally apply for that. Once you do, your credit score could be impacted.
Check Out: How to Prequalify for a Personal Loan
Keep Reading: Are Personal Loans Tax Deductible?
Other tax refund advance alternatives
If a personal loan or tax refund advance doesn’t seem right for your needs, you might be considering other fast loan options, such as payday loans, pawn shop loans, or car title loans.
However, while these same-day loans might get you quick cash, they should only be used as a last resort. These types of loans typically come with sky-high fees and interest rates — often in the triple digits.
Plus, you’ll generally have to repay the loan in a matter of weeks, which might not give you enough time to pay it off without getting further into debt.
Learn More: Are Payday Loans Safe?
Tip
Even if you have poor credit, you might still qualify for a personal loan.
Some lenders even specialize in bad credit personal loans that you might be eligible for. Just keep in mind that these loans generally come with higher interest rates.
Another option is applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Having a creditworthy cosigner could help improve your chances of getting approved for a loan.
Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
No matter which loan option you choose, it’s a good idea to consider how much the loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator.
Read More:
