Month: May 2020

How to Have a Great Financial Record after College?

Life as an individual truly starts only after college. Unfortunately, most people in their 20s are usually left to fend for themselves in terms of financial affairs. This can be extremely stressful, especially when considering the fact that your 20s are both the best years to invest time and money into building up your credit score, as well as the period when you can enjoy the most freedom.

Contrary to popular belief, organizing your life so that you can have complete financial freedom right after finishing college isn’t too difficult. While you do need to plan things thoroughly, there are a few principles that you can follow to not live under the stress of tomorrow while also building up your credit score for your 30s and 40s.

This having been said, keep in mind that all of the following 4 methods and principles should be used together to ensure success. Each of them will give you varying amounts of financial stability, however, only if you use them together will you be able to have a large degree of financial freedom.

Find ways to generate passive income

One of the best ways to gain a lot of financial freedom is to start generating passive income. There are hundreds of ways to generate revenue 24/7, even while you sleep. Whether you choose to start a vlog and to build a social media community that you can then use to make money or start farming cryptocurrency, making money even in your sleep isn’t impossible.

If vlogging, blogging, or creating content isn’t your thing, you can always start an online store that will allow you to earn without having to ever keep any sort of inventory. There are thousands of companies that enable you to custom-make clothes or decorative objects that you can then sell through your store. With a bit of research, you should be able to set up a system where every time you get an order, it gets redirected to the manufacturer that you are working with.

Lastly, there is the option of using what you’ve learned in college or something that you’re very good at to create a webinar or an online course. Depending on what platform you choose to use, the course can be automated so that it will require minimal effort on your part.

Avoid accumulating bad debt

When you’re in your 20s and you want to buy something, there aren’t many options to get the money for it, especially if you want to make a big purchase. You can either wait to raise the money that you need or you can borrow it from a bank.

Whenever possible, try to be patient. Taking out no credit check loans, or using too much credit can cause your credit score to drop. Furthermore, the more high-interest debt you have, the harder it will be to manage your earnings and you may reach a point where you will be working solely to make your monthly payments on time.

Take care of your financial history and work to build up your credit score

One of the most important things to do after college is to be patient, especially when it comes to making important financial decisions. In other words, always make sure that you only borrow what you know that you can pay, without falling behind on your payments. Always budget your finances so that you can repay the money that you borrow. This will allow you to have a clean financial record and build up your score.

This having been said, debt should not always be avoided. Instead, try to focus on good debt such as a mortgage on a house, or home equity loans. If you pay these on time, they can help show creditors that you have complete control over your financial affairs and they will be more inclined to lend you money in the future.

Try to avoid consumerism at all costs

This principle applies to both what kind of products you buy, as well as what you spend on them. Your 20s should be focused on enjoying life and earning money, not on paying off your debts. In other words, try to only buy what you need. Do not focus on getting gadgets or other electronics that are very expensive, unless they are actively helping you make more money.


Getting a job after college is a great feeling, especially if it pays well. However, this should not mean that you can go and spend everything that you make on extremely expensive products that may be just for show. Instead, use the money to invest in your future. Buy a house, buy the furniture that you like and make sure that you’ll be able to use it for the years to come.

Nobody is saying that you should not also get the things that you like, whether it’s a new iPhone or a next-gen laptop, but always keep in mind that they should be an investment. If you buy something expensive, make sure that it won’t affect your finances too much.

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How to Get a Tax Refund Anticipation Loan?

All residents of the United States must report their income and pay taxes to the state. Incomes that the people earn in the US or other countries are subject to taxes. Employers must withhold taxes from their employees. After determining the taxes that each employee must pay and the withholding tax, the employees will receive the difference as a refund.

Taxpayers can get their refund 21 days after they filed their tax returns. However, if one is in dire need, he can apply for a tax refund anticipation loan. Banks and some firms that prepare taxes for companies or individuals extend this type of loan. These tax preparers would sometimes offer the loan interest-free to attract more clients.

Here are some steps to take when applying for a tax refund loan.

Prepare the Requirements

Before applying for a tax refund loan, check the documents that you must submit with your application. You must supply the lender with the name and address of your employer, as well as the contact number. Have a copy of your current and past W-2 form. The W-2 form is also called the Wage and Tax Statement.

The paper contains your total annual income and the amount of withholding tax. Your employer must also submit this to the IRS or the Internal Revenue Service. However, borrowers can apply for a loan as early as December, and lending institutions would approve them without knowing how much your refund would be. If they approve an amount more than your tax refund, you have to pay what you have borrowed.

Some lenders might ask for your pay stubs or estimated income, as well as a driver’s license. You might not need all but it pays to prepare all to prevent delay in your loan approval.

Find Banks and Other Institutions that Offer Tax Refund Loan

Remember that each bank or lending institution has different offers when it comes to your tax refund loan. The difference would be in terms of the maximum amount that you can borrow and the rate of interest, as well as the terms of payment.

Some tax preparers offer tax refund loans without interest and with easy repayment terms to attract more clients while some lenders may extend loans at high interest. Shopping for lending institutions will help you find the most beneficial deals for you.

Fill Out the Application

Nowadays, lending institutions allow applicants to submit the application form online. Make sure to provide all the information that the lender requires.

Advantages of Applying for a Tax Refund Loan

One major advantage of a tax refund loan is that you get to use your excess payment for your tax. Here are the other advantages of applying for this type of loan.

No Need of a Credit Score

When you apply for a tax refund loan, the lenders would not look at your credit score. You are borrowing money that you would receive shortly and the lenders can directly deduct the payment from the amount that you will receive. Some banks and tax preparers partner with the government, assuring them that they can get paid when the Internal Revenue System (IRS) releases a refund.

Quick Approval and Release

Since tax refund loan payments would come from your tax refund, the lenders have the assurance that they could collect payment. Approval is quick and creditors release the funds within the day or the next day of filing.

Easy Application

Once you have applied for a tax refund loan from any tax preparers, you are sure about its approval. Lenders do not have to worry about your capacity to pay back what you borrowed because the tax refund goes to these tax firms. As long as you have submitted your application, your loan will get approval.

How to Use Your Tax Refund Loan?

Many taxpayers wait for their tax refund to arrive while a few who are in dire need may take a loan against their tax refund. Just like other loans, you do not use this to support a luxurious lifestyle. Use your credit for emergencies only. If you are not in dire need, waiting for your tax refund check will save you from worrying about paying back your loan in the future. If the money you borrowed is more than your tax refund, you might find it difficult to make the monthly payments.

Using your tax refund to pay up the amount that you borrowed against it is one best way of avoiding having to pay for your loan long term.

If you are an employee and you have paid your taxes religiously, you can expect a tax refund after filing your taxes. Borrowing against the amount that you expect can help you deal with emergencies that would come your way.

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