Your tax refund will arrive to you in one way or another. When it comes to deciding whether a tax refund card is right for you, you need to understand all of your options. This way you can find out what a card is and whether it will benefit you.
Filing taxes is relatively simple. If you have a refund coming, there are a few options of how to receive it. The first is to let the IRS mail you a check. This process could take several weeks (if not longer). The second is to have the money direct deposited into your checking account. This could be quick but you need a bank account. The third is to use a tax refund card in the form of a prepaid Visa. This method is fast and you don't need to do anything special.
What a Tax Refund Card Is
A tax refund card is a prepaid Visa or MasterCard that you get from the company that you are filing your taxes with. In some cases you can get the card before you are done with your taxes. In order cases, you will get it as soon as the money is loaded onto the card. Another option is if you have one from past years, the money can be loaded directly onto the one you already have.
Since it's a prepaid Visa, you can use it anywhere that the credit card is accepted. The money will appear on the card within days of filing your return. As soon as your return is accepted by the IRS, it may take less than a week to have your return on the card. This is one of the fastest methods available, which is why it's increasingly popular.
Depending on the company that issues the card, there may be no additional fee to get the tax refund card. Check with the actual bank or provider issuing the card for details to determine if it's the right method for you.
Perks of Tax Refund Cards
Tax refund cards come with a number of perks. Many of these perks coincide with other prepaid credit cards and other credit cards. The other stems from the fact that it's for tax refunds, providing you with a fast and secure way to get your refund.
The top perks of the refund card include:
- Online account management
- Ability to shop anywhere
- Pay bills online
- Load cash onto card
- Avoid going into debt
Logging onto the card's website with a username and password provides you with online account management. Here, you can find out the balance on your card, look at previous transactions and contact customer support. This ensures you know all the details on your card and provides you with a way to track spending effectively.
With a Visa or MasterCard logo on the card, you can shop anywhere the card is accepted. Pay for gas at the pumps, visit merchants online or around the world easily and even visit ATM machines to pull out cash.
A tax refund card allows you to pay your bills online. By logging on, you can enter the details of the person or business you need to pay. This includes setting up recurring payments to make your life easier. You won't have to write checks anymore. The money is right there to let you pay what you need to pay.
When your tax refund money is out, you can continue enjoying the benefits of the card. It's possible to load more cash on the card from a number of retailers around the country. This is a great way to manage money and not run out of money on the card.
You can only spend what you have on the card. Transactions will be denied if you run low on funds, preventing you from going into debt. For large purchases, the card encourages savings. No interest rates exist, either, which means you won't go into debt no matter what kind of purchases are made with the card because the money has been pre-loaded.
You need to get your tax refund. When you want a prepaid card with a lot of benefits and your tax refund quickly, a tax refund card could be the best way to go. It's a great way to have a credit card without dealing with the interest.