Hr Block's Refund Anticipation Loans: What's The Deal?

H&R Block offers refund anticipation loans to qualifying taxpayers. The loan is issued by Pathward, N.A., and is available in amounts of \$250, \$500, \$750, \$1,250, or \$4,000. The loan is offered at 0% APR, meaning there is no interest or loan fees charged. However, there are fees associated with the prepaid Mastercard that the funds are loaded onto, including charges for reloading and ATM use. The loan is repaid directly from the taxpayer's refund, with any remaining balance sent to the taxpayer. While H&R Block claims that the loan has high approval rates, some customers have expressed disappointment with the loan amounts they received, suggesting that there is a lack of transparency around the criteria used to determine loan amounts.

Refund Advance loan availability

H&R Block offered refund advance loans from January 3, 2025, to February 28, 2025. The loan is a no-interest loan of up to $4,000, issued by Pathward, N.A., and is available to qualifying taxpayers who file their taxes with H&R Block. The loan is offered in five amounts: $250, $500, $750, $1,250, or $4,000. The approval and loan amount are based on the expected refund amount, eligibility criteria, and underwriting.

The Refund Advance loan is a 0% APR loan, meaning there is no interest and no loan fees charged. However, fees for other optional products or product features may apply. To be eligible for the loan, individuals must meet certain requirements, such as e-filing a tax return at a participating H&R Block office, expecting a sufficient refund by the IRS, and providing appropriate identification. The loan proceeds must be placed on an H&R Block Emerald Prepaid Mastercard or deposited into a Spruce account.

If approved, the funds are typically available the same day, and an H&R Block tax professional will assist in setting up repayment from the tax refund. The loan amount will be automatically deducted from the tax refund, and any remaining balance will be sent to the borrower. While the Refund Advance loan has high approval rates, it is important to note that it is not the individual's actual tax refund, and the loan must be repaid.

In previous years, H&R Block offered similar refund advance loans, as evidenced by customer reviews and discussions from early 2024. However, the specific terms and conditions may vary from year to year.

Tax refund anticipation loan proceeds

H&R Block, for example, offers a Refund Advance loan of up to $4,000 with no interest and no loan fees. The loan is issued by Pathward, N.A., and is available to qualifying taxpayers who file their taxes with H&R Block during specific periods, such as between January 3 and February 28 of a given year.

If approved for the loan, the proceeds are typically disbursed on the same day and must be placed on an H&R Block Emerald Prepaid Mastercard (also known as an "Emerald Card") or deposited into a Spruce account. These accounts offer a one-time transfer of funds by check or automated clearing house (ACH) without any additional fees.

It is important to note that the loan proceeds are not the actual tax refund itself. The loan is repaid from the anticipated tax refund when it is received, ensuring a seamless and convenient repayment process.

While the loan proceeds can provide quick access to funds, it is essential to understand the eligibility requirements, terms and conditions associated with tax refund anticipation loans before applying.

No-interest loan

H&R Block offered a no-interest loan, also referred to as a refund anticipation loan, to qualifying taxpayers who filed their taxes with the company between January 3 and February 28, 2025. The loan amounts ranged from $250 to $4,000, and the funds were disbursed to a prepaid card or checking account.

A no-interest loan, as the name suggests, is a loan where the borrower is not charged interest on the principal amount. In other words, the borrower repays only the principal without any additional interest. No-interest loans are typically available for a limited time, and the borrower must repay the loan within the given period to avoid interest charges and penalties. These loans are often used for large purchases, such as a car, appliance, or furniture, and can be obtained from dealerships, retailers, cash advance apps, or lenders.

While no-interest loans can be a good option for those who need quick access to funds, it is important to carefully consider one's budget and ability to repay the loan within the specified timeframe. Failure to comply with the loan terms and deadlines can result in penalties and backdated interest being applied. Additionally, no-interest loans may come with stringent eligibility criteria, and a good credit score is often required to qualify.

It is worth noting that no-interest loans are not as common as loans that charge interest, and they may come with certain conditions or fees. It is always advisable to read the fine print and understand all the terms and conditions before committing to any loan.

High approval rates

H&R Block's Refund Advance Loan program has high approval rates. The loan is a no-interest loan of up to $4,000, issued by Pathward, N.A., and is available to qualifying taxpayers who file their taxes with H&R Block. The loan is offered in five amounts: $250, $500, $750, $1,250, and $4,000. The approval of the loan and the loan amount are based on the expected refund amount, eligibility criteria, and underwriting.

To be approved for the loan, applicants must file their taxes with an H&R Block tax professional, apply, and meet certain eligibility requirements, such as ID verification and a sufficient expected tax refund amount. They must also meet the lender's underwriting requirements. The bank will evaluate the application based on standard underwriting criteria and decide whether to approve or deny it.

H&R Block's Refund Advance Loan is a great option for those who need financial assistance while waiting for their tax refund. The loan provides quick access to funds, with approved funds available the same day in most cases. It is important to note that the loan is not the actual tax refund but is repaid from the refund.

Repayment options

Firstly, it is important to note that the H&R Block Refund Advance Loan is a no-interest loan. This means that the loan is offered as a 0% APR loan, and there are no loan fees charged. The loan amount will be automatically deducted from your tax refund when you receive it from the IRS.

Secondly, the loan funds are disbursed onto either an H&R Block Emerald Prepaid Mastercard or a Spruce account. The Emerald Card has several fees, including charges for reloading, ATM usage, and inactivity. There is no charge, however, for a one-time transfer of funds by check or automated clearing house (ACH) from your Emerald Card or Spruce account to your bank account.

Thirdly, there are two main methods of repayment to choose from:

• Refund Transfer: For a $42 fee, the loan will be repaid from your Refund Transfer Account, along with tax preparation fees and other authorized amounts. The remaining funds will then be delivered via the chosen disbursement method (Emerald Card, Spruce account, direct deposit, or check).
• Repayment Account: If you do not select Refund Transfer, you can choose to direct the loan to be repaid from a Repayment Account. The remaining amount will then be loaded onto your chosen disbursement method.

Finally, it is important to remember that the H&R Block Refund Advance Loan is not your actual tax refund from the IRS. It is a loan that you will need to repay, and you will also need to pay H&R Block's tax preparation fees.

Frequently asked questions