What is a tax refund loan?  I’ll admit I hadn’t heard of it myself until a few days ago.  Apparently if you can’t wait for your tax refund check to come in the mail, you can take out a tax refund loan to pay for your expenses, and then pay it back when your check arrives.  The tax refund lender uses your tax refund as collateral for the short-term loan.

As anyone who has ever been employed knows, you have to do your taxes.  The positive side to filing taxes is that you are eligible for a refund.  According to how much you pay in taxes, the government cuts you a check if they think you have paid too much.  Many people assume they will receive a certain amount and start to spend it before it rides.  The anticipation gets the best of them, or they have to purchase something while it’s still on sale.  Whatever the reasoning, when a consumer needs funds quickly they can take out a tax refund loan.

However the fees and interest on tax refund loans are higher than payday loans and cash advances.  When you take out a tax refund loan you can expect to pay tax preparation fees, administrative fees, finance charges, loan fees, and processing fees.  There is also high interest associated with these loans.  There is a one time fee and interest associated with payday loans, but the customer ends up paying less with an online payday loan.

If you need quick cash before you receiveyour cash refund check, the better option is to take out an online cash advance.  A cash advance, cash loan, or payday loan is a short term loan that is paid back on your next pay period.  At Cornerstonepayday.com you can apply for the loan 100% online.  The application is safe & secure, and approval is instant.  Applicants receive their cash within 24 business hours of applying.  The amount you can borrow ranges from $100 to $1,500.  The amount you are approved for depends on your income, credit, and other factors established by our online payday loan lenders.  We only work with licensed payday loan lenders, so our lenders always abide by industry best practices.

Get the cash you need and avoid the heavier tax refund loan fees and interest.

Many people don’t intentionally break the law.  However, when you do break the law there are consequences including heavy fines.  When governor Swartzenagor took office in California he increased fines to double the amount all over the state.  A mere speeding ticket can now cost you over $300. When you get a traffic violation you can’t afford, a quick and easy online cash advance can get you the funds you need to pay it off on time.

Most of us take our driver’s exams when we are teens in high school.  We study the laws well enough to get that license, and then the facts seem to slip our minds.  There are violations which we can all avoid by paying attention to posted signs, but sometimes it’s too dark or the sign isn’t positioned right.  Sometimes signs are just plain confusing, and other times you just really needed to make that turn at that time.

However, there are violations which we commit while being totally oblivious.  For example, my good friend Jamie was on her way to school one afternoon when she noticed a pile up down the street.  She could see a school bus parked in the right lane with its back lights flashing.  There were quite a few cars piled up, so as she waited she had time to notice that there were also no children in the vehicle.  As she got closer to the seemingly stalled school bus, she saw that cars in the right lane were merging over to the left lane, she also noticed a police officer in the middle of the street.  The police officer was moving his arms in a way that made it seem like he was directing traffic around the school bus.  At this moment she decided to do as the other vehicles had done, and moved over to the left lane.  Had she had known she was doing anything illegal, she definitely would not have done so since there was a police officer standing in the middle of the street.

As she approached the intersection the police officer then instructed her to pull over.  It was at this time that she noticed a line of cars pulled over to the side.  She had been unable to notice this earlier, because the school bus was obstructing her view.  The police officer then proceeded to write her a ticket.  Jamie was confused and frustrated.  When a school bus’ lights are flashing, vehicles on both sides of the street are supposed to stop.  This law was created to protect the children exiting the bus.  Should one of the children decide to run into the street, no harm would be done since the surrounding vehicles would be in a stalled position.

However, the situation Jamie was in was a trap set up by the police department.  A “police trap” occurs when police officers set up a scenario, expecting citizens to break the law.  Sometimes they set up speed traps, where multiple police cars line up out of view and wait for citizens to drive by speeding.  Other times they target an obscure law that many citizens don’t remember or know about.  One way police officers profit is by setting up a stalled vehicle trap.  Did you know that if a car is on the side of the road and being serviced by a tow truck, or a police officer is giving a citizen a ticket, you are required to switch lanes?  Daniel was the victim of such a trap.  A tow truck was positioned on the side of the road, and five cop cars lined up behind it.  The police officers gave a ticket to each car that passed without switching lanes.

Jamie took her ticket to court, and argued that the size of the bus and the police officers in the street confused her leading her to break the law.  The judge sided with the police officer, and Jamie was forced to pay a $650 ticket.  As a student, Jamie did not have access to $650 on the spot.  She took out an online payday loan for the amount, and was able to pay her ticket on time.  Had Jamie not taken out a cash loan to pay her fine, she risked having her licensed suspended and having her fine increased.

A new law passed by the House of Representatives is going to make it a lot harder for unlicensed payday loan lenders to lend. We’ve discussed this issue on the Cornerstone Payday blog before, why unlicensed lenders can be a nuisance to the good payday loan name. Unlicensed lenders do not have to abide by industry best practices, and they rarely follow government rules and regulations. The laws regarding payday loan lending were established to protect low income Americans from getting trapped in a cycle of debt. Those who lack funds, take out a loan without the ability to pay it back. Without regulations, certain online lenders were charging astronomical rates and fees per loan. The government stepped in, and now all licensed payday loan lenders charge rates and fees that are governed by the state in which they are licensed. The problem is, that there are many unlicensed payday loan lenders still lending in states which have banned cash advance lending. Some people within the industry feel as though the extent of government regulations has pushed many to lend illegally, without a license. The problem with unlicensed lenders is that they can run their business in which way they choose. If you do not pay your loan on time, they may harass you with threatening phone calls. They can also charge higher than normal interest rates and fees. The new law passed by the House of Representatives says that cash loans that were provided by unlicensed lenders will be forgiven. The law is supposed to prevent lenders from operating without a license. This also means that if you took out a payday loan from an unlicensed lender you can avoid paying the high interest and fees they are illegally charging. At Cornerstone Payday we only work with licensed online cash advance lenders. Each of our lenders is licensed to lend in the state in which you are applying. The fees and interest rates are governed by the laws and regulations initiated in those states. Not all online payday loan websites work directly with licensed payday loan lenders, but at Cornerstone Payday we make sure to. Apply for an online payday loan today, knowing that you’re working with someone who is abiding by government regulations.

There probably aren’t many situations where you imagined yourself taking out a payday loan, yet there are many situations in which a cash advance could come to your rescue. For example, my friends Rick and Krystle were searching for a place for weeks without success. Their lease was about to end in two weeks, so the hunt was on.

Krystle was also in the middle of a huge work merger. She was busy in meetings all day, and on the phone, so sneaking away to view apartments was not in the cards. She left the apartment search up to Rick, against her better judgment. None the less, Rick found an affordable apartment in a desired area, and all was well. That is until Krystle went to view the place and noticed the infestation problem. With just one week left, Krystle broke the lease with the infested apartment owner and began searching for a replacement.

Sadly the couple lost their deposit and first month’s rent, because they had signed the lease agreement. This left them with very little to put down on a new place. Luckily, a new one bedroom came on the market one morning, and the couple viewed the apartment immediately. The place was beautiful, newly remodeled, and affordable. They were so excited by the price and lack of roaches that they forgot to check for appliances. The kitchen lacked a fridge.

You never really understand how vital a refrigerator is until you attempt to live without one. They wanted to buy a fridge, but the cheapest they found was for around $350. After losing their deposit, and paying first month’s rent at the new place, they lacked the immediate funds to buy a fridge. That’s when the couple decided to take out an online payday loan. Rick had better credit, so he applied online. He took out a loan for $500, and it was wired to his account within 24 hours. He was able to buy the fridge, and the couple was able to eat at home in their new place. He paid the cash loan back with his next paycheck, and no harm was done to his credit.

Just another example of how online payday loans help people facing a temporary financial crisis.