Refund Express Loans

Refund Express: The Line of Credit that Lasts!

When you have your taxes prepared through Alternatives Federal Credit Union, we are pleased to offer you a fast, affordable loan secured by your federal refund that far surpasses other types of Refund Anticipation Loans. If you don't have an account with us, we'd be happy to open one for you.

When your tax return is complete, we will be happy to set up a Line of Credit that will be secured by your federal refund. Your tax refund must be directly deposited into your Credit Union savings account. When your refund is deposited, we will transfer the money to pay off the Line of Credit. If you would like to keep your Line of Credit after you receive your refund, we will review your financial situation to see if you qualify for an unsecured Line of Credit. If you qualify, the refund will be available to you and the Line of Credit is yours to keep. If you don't qualify for an unsecured Line of Credit you have the option of retaining a secured Line of Credit. Your state refund will not be included in the loan, but will be directly deposited to your account.

There is no annual fee for the Credit Line, and the Annual Percentage Rate (APR) is 12.95%. Let's take a look at what a low-cost, affordable option this is. If your refund is $2,000, you will pay:

ALTERNATIVES CREDIT UNION'S REFUND EXPRESS:

Cost of Tax Preparation	FREE
Refund Express Loan Fee	$20.00
Line of Credit Fee	FREE
14 days interest @12.95%	$9.94
TOTAL COST	$ 29.94 (effective interest rate is 12.95%)

RAPID REFUND LOAN:
This information is based on the actual cost paid for a 2001 tax return prepared by a well-known national tax preparation service.

Cost of Tax Preparation	$120
Loan Fees	$100
Application Fee	$30
TOTAL COST	$250 (effective interest rate is 325%)

The advantages to you are clear:

• Immediate savings of more than $200
• The option of having an ongoing Line of Credit
• The ability to repair or build a traditional credit history
• Assistance with financial planning and goal setting

To take advantage of this service please contact the Consumer Loan Department at 607-216-3413.

How Much Will My Refund Express Loan Cost?

Twelve to 48 hours after we've filed your return, we receive an acknowledgement from the IRS that your return has been accepted. We then give your file to the loan department; they are normally able to set up your loan that day. Once your loan is set up, we will call you to let you know that your funds are available at the Credit Union. You can then come to the Credit Union to borrow against your refund.

The cost of your Refund Express is the estimated interest (2 weeks at 12.95% APR) plus the $20 Refund Express fee. Below is a chart that shows the estimated interest and the total cost of your loan. To find your cost, find the amount of your federal refund on the left column, then follow to the far right column for the estimated total cost.

Federal Refund Amount	Refund Express Fee	Estimated Interest	Estimated Total Cost
$100-1000	$20	$5	$25
$1000-2000	$20	$10	$30
$2000-3000	$20	$15	$35
$3000-4000	$20	$20	$40
$4000-5000	$20	$25	$45
$5000-6000	$20	$30	$50

We will extend to you the amount of your federal refund minus the Estimated Total Cost.

Example: If your refund is $1,500, we will extend to you $1,500 - $30, or $1,470.

Please see a VITA volunteer or an Alternatives staff person if you have any questions.