Things To Know As Tax Season Arrives

As the deadline to file taxes is around the corner, it’s wise to consider some warnings and tips to maintain good credit and look at money issues in general. The Illinois Attorney General recently issued a warning about tax scams – the possibility of scam tax preparers and things to know about tax refund loans (or any loans to pay taxes). Those looking for help preparing their taxes should consider the Internal Revenue Service’s Taxpayer Advocate Service, an offering of information on services available and how to avoid scams, especially low to moderate-income people. People with disabilities, over age 60, and limited-English speakers are often in need of help. Help is also available online with the IRS Free File Online Lookup Tool along with free in-person tax assistance at locations available on the IRS website.

Aside from direct tax concerns and available help, at a recent Transunion forum in Chicago it was noted that over 60 million U.S. adults fall outside the credit ecosystem or don’t have enough data for scoring by standard risk models. Not all consumers are on a standard credit path, causing a need for the use of alternative sources of data when offering first-time credit in order to reduce risk to lenders. Understanding how lenders score borrowers can help borrowers know how to best approach lenders for the highest chance of approval.

It’s also important to consider small businesses in need of cash given the above factors and others unique to businesses. The fall of Silicon Valley Bank and Signature Bank has caused some lenders to tighten credit offerings and retain capital. Loan approval rates have fallen significantly in
recent months, which may indicate other offerings such as direct online loans may offer better terms and higher approval rates.

In fact, in light of the above factors, going to the right sources means there’s no need for an excellent credit score or history. Banks are often stricter about who they lend to, making online loans 2023 all the more helpful this year and beyond. Individuals and small businesses can
make use of loans that don’t have as many requirements with faster processing.

Nevertheless, although there are sources of loans that have lower approval qualifications, it’s important to maintain a good credit history for improved interest rates on other purchases such
as a home, car, insurance, and so forth. Getting a copy of your credit report and learning how to improve your score is a good place to start. Many factors go into having a good credit score such as payment history, amount of credit used compared to total amount available (utilization),
how much you owe, mix of types of loans and other credit, and other factors. Your complete report is the most important beyond just the score – something to consider.

While it may be more difficult to get credit from certain sources as discussed at the recent Chicago
credit forum, and tax season is here, there are options out there for you regardless of credit history or amount you need to borrow. Following the tips in this article will get you ahead in the game.