Is there much difference between a cash advance online from a direct lender and one from a tax refund preparer? Some of the leading tax specialist companies as well as many small ones are pushing their cash advance opportunity as the tax season approaches.

A cash advance supports emergency payments.

Tax specialists advertising their version of a cash advance loan are taking advantage of the holiday season. If a direct online lender was to push a cash advance for shopping opportunities, the lender would be accused of predatory lending practices. Because it is a “tax preparation” company, there seems to be fewer problem with their version of a short-term loan.

Direct cash advance lenders are scrutinized for high priced loans, fast payoffs and aggressive practices. Many state governments have passed laws controlling loan limits, fee prices, interest rates and loaning practices. Websites are to supply visible rates and loan terms. Best practice rules and regulations are law in many states. Tax refund companies do not fall into the short-term lender category; therefore do not need to follow the lending rules.

Direct cash advance lenders will display the loan cost on the webpage.

A tax refund specialist will tell you how much you could qualify for, how the money will be transferred to you and the number to call to make it happen. The phone number will connect you to a call center in order to pre-qualify you for the loan. They will find the nearest agent and set up an appointment. Pre-approval does not promise a real loan approval. The tax specialist will need to figure your estimated return based on your last pay stub. This loan is not connected to the IRS in anyway. The earliest IRS refund can be e-filed on January 22, 2013. The money you receive is a loan against the IRS refund. Interest will be high and payments will be expected soon. When this money is not repaid, your actual tax return will repay the loan plus a bunch extra in interest. These lenders will charge around 36% interest which is higher than many cash advance lenders.

It is one more opportunity for someone to get extra money during struggling financial times. With the cost in fees being so high, it would behoove any applicant to evaluate the reasons behind the need for the loan. Just like with any other short-term high interest loan, the end result should be worth the cost. Obtaining extra money for wants instead of needs is usually not a positive financial decision. There is a price of convenience.

A cash advance is one option for emergency money.

When looking for emergency money, don’t let the stressful situation blind the end result. Ask a close friend or relative to help process your options. Budgets take lots of effort to build and are easily broken. In order to protect your future finances, evaluate your options before you make any unmanageable decisions..

Spotya! Cash Advances Online is a direct lender looking to educate their readers. Understand the short-term loan options or learn to rebuild credit so there is no need for a fast cash loan. It’s all relative to an individual’s situation so find what works best for you.