When you need an emergency loan or cash advance, it may seem difficult to find the right one. Unexpected medical expenses or sudden car repairs can shock our budgets and leave us in need of some help. And it can be all the more difficult if the lender requires a fax or unreasonable documentation. I mean, does anyone even own a fax machine anymore? Fortunately, there are plenty of options out there that won’t require these things. Just beware, because no fax payday loans could potentially make your situation worse.
Traditional lenders will want to follow the tried and true methods of verifying your creditworthiness. Credit checks, payment history, and all the other financial activity of your past will come into play. But when you need a cash advance right now, should the past matter?
Circumstances like bad credit, bankruptcies, and other financial missteps can affect your ability to get a loan quickly. When borrowers cannot get a loan at a bank they may turn to payday loans. But this may put you in more financial danger than they’re worth.
What Are No-Fax Payday Loans?
A payday loan is one of the quickest and easiest ways if you need money now. Thousands of payday lenders operate in the US. This makes them some of the most accessible financial products in the world.
Payday loans are short-term solutions to short-term financial problems. They work best when they can be repaid by the end of their loan term. They are essentially cash advances designed to provide emergency funds that help people get to their next paycheck.
Payday lenders have long been known for their fast application, approval, and disbursement process. Additionally, a payday loan application requires no credit check. This is one thing making them attractive to borrowers with bad or not-so-great credit.
In the days before the Internet, a borrower would go to a payday lender and fill out an application. If they are approved, the borrower will write a check for the amount of money they need, plus the interest and any of the lender’s necessary processing fees. The payday lender would then give the borrower the loan. At the end of the loan term, the lender cashes the check, which the borrower’s recently deposited paycheck should cover.
As technology advanced, application processes were sped up even more with fax machines. This allowed documents to be transferred over phone lines between lenders and borrowers. Thanks to the Internet, payday lenders now offer a process that skips the hassle of collecting and transferring paperwork. It’s called no fax payday loans or fax-less payday loans.
Applying For Fax-Less Payday Loans?
Fax-less payday loans cut through some of the bureaucracy of acquiring a loan. They do this by verifying only the essential information needed to approve or deny a loan. Because of the little need for paperwork, lenders process them within minutes. This allows borrowers to fill out an application and get money all within the same day in some cases.
For approvals of fax-less payday loans, borrowers will need to meet a couple of requirements and present just a few pieces of information:
- Must be at least 18 years of age
- Must be a US citizen or permanent resident
- Have a valid, government-issued ID
- Have a steady job or source of income
- Valid email address
- Active checking account
Instead of traveling to a brick-and-mortar location to apply, fax-less payday loan applications are available online through the lender’s website. That means that a payday loan can found in the comfort of your home or even on a mobile phone or device. And since the process is all done online, you can typically apply for payday loans online 24 hours a day, seven days a week.
With no need to fax or send paperwork back and forth, everything about the fax-less payday loan process runs faster, from the application process to approval and then to the best part: the deposit of funds to your bank account. But just because they’re fast doesn’t mean they’re safe…
No Fax Payday Loan Cautions
A fax-less payday loan, without question, makes getting you the emergency cash you need very easy and lightning fast. This process is so fast that many people avoid no-fax payday loans altogether with a “too good to be true” attitude. While caution is entirely understandable, receiving a quick payday loan without handing over mountains of paperwork is possible. When considering fax-less payday loans as an option, don’t forget that the payday industry is one to beware of.
It is essential to realize that payday lenders process your information differently than a bank would. For example, some fax-less cash advance lenders may work with a third party to verify your loan application and even finance the loan itself. As a result, you may not fully understand who has had access to your information until you receive a decision.
No fax payday loans are subject to the same interest rates and loan terms as any other payday loan. Unfortunately, that means that a fax-less payday loan borrower will have to trade high-interest rates and fees for speed and convenience.
What To Watch Out For
Typical payday loans have terms that require repayment in full anywhere from 14 to 30 days from the disbursement. If you don’t pay the loan in full, it may become a new loan to allow the borrower to avoid defaulting on the loan and continue making payments on the balance.
However, since that balance is technically the principal of the new loan issued by the payday lender, interest and fees will be applied to it once again. Therefore, it is essential that when you take on a fax-less payday loan, you will have to prioritize your budgeting.
Many fax-less payday lenders advertise the ease of the process without helping people truly understand the risks involved with not being able to take on a loan. As a result, when people are desperate for financial relief, they can be easily convinced that getting money now is more important than considering the long-term consequences.
Fortunately, government agencies like the Consumer Finance Protection Bureau enforce regulations that promote transparency in lending. Additionally, many states have specific laws that place particular limits on interest rates. So before you borrow, check to see what the rules are where you live.
Build an Emergency Fund
While fax-less payday loans seem like a blessing, using them only when absolutely necessary will help any borrower keep their overall financial health in good condition. Nevertheless, emergencies can and will arise, so building an emergency fund is essential. As soon as you recover from any current financial problems, it’s important to start saving again.
Your emergency savings fund should be part of an overall financial plan for your income and expenses. For those typically in need of assistance like payday loans, budgeting can effectively streamline spending and provide a clear overview of a person’s financial situation. For those new to budgeting, there are tons of sites and apps available to help track income and expenses.
No-fax payday loans are cash advances ready for you when you need them the most. However, it is critical to remember that payday loans are high-risk loans that need to be repaid as quickly as possible.
Before you fill out that payday loan application, take as much time as you can to find the right lender. After all, since payday applications take only minutes to complete, you can use your spare time to make good decisions!