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What is a Faxless Payday Loan?
The faxless payday loan is ideal for people who are looking to borrow money on a short-term basis and who are willing to guarantee the loan against their next paycheck. Considering the alternatives such as credit card cash advances and the conventional bank loan, a faxless payday loan is quick, convenient and offers far more competitive rates.
Most lenders do business online. This reduces their overhead costs such as office supplies (e.g. paper, pens used for application forms), and allows them to automate processes such as application assessments. Lenders are able to operate more efficiently, so that the cost savings can be passed on to their customers.
The first step is to fill out the online application form. Many people see this as an advantage, since they do not need to make trips to the bank and wait in line. They can file their application with minimum fuss in the comfort and privacy of their home or office.
This is how information about the borrower is collected. The data gathered is used to assess if the application will be approved or not. With the online payday loan no faxing of documents is required and the application as good as approved, as long as employment and bank account information are easily verified.
In fact, eligibility requirements are quite simple. Borrowers just need to be over 18 years old, employed and have a checking account. A less than perfect credit score is not a problem, since a perfect credit record is a rarity these days and most lenders do not hold innocent bad credit slip ups against their borrowers.
The assessment itself can take anywhere from 30 minutes to a few hours, significantly faster than the process for a conventional bank loan. Any additional information that may be required can be submitted quickly online with minimal effort on the borrowers part. Compared to going back and forth to the bank and waiting in line again this is another advantage of faxless payday loans over conventional bank loans.
Following the approval of the application, funds are transferred to the borrowers checking account within one to three business days. For repeat customers with good standing, it is possible to get the money within the day.
The loan is usually on a fixed interest basis and is payable on the next payday. However, it is possible for the lender and the borrower to work out an arrangement where the term is for a longer period and still on a fixed interest basis. It is in the best interests of both lender and borrower to do this, since it is proof of responsible lending on the lenders part and ensures that the loan is paid on time by the borrower, without putting him or her deeper in debt.
Who Can Benefit From Faxless Payday Loans?
Financial problems bring with them a number of worries. Inability to meet commitments is the foremost of these worries. In such cases, most people turn to loans. However, taking loans without too much thought can lead to a continuous cycle of debt that is hard to get out of. Also, there are indefinite delays associated with procuring loans. Often, such delays mean that a person is unable to meet their commitments on time. This could have disastrous results.
Faxless payday loans are loans that take care of the shortcomings of typical loans. These loans are cash loans that are disbursed without the submission or faxing of any documents. They are short term loans procured against the monthly pay slip. Hence the term faxless payday loans.
Loans such as these are becoming increasingly popular due to a number of reasons. Firstly, they are easy to obtain. The internet has made it possible to avail these loans from within the comforts of your home. You can apply for the loan online and the money will be credited directly into your account after the data is verified. A monthly income and a bank account make you eligible for payday loans.
The hallmark of these loans is the promptness with which these may be availed. The entire process of availing the loan might take a few hours, unlike in the case of typical loans where the process of filing the application, submitting necessary documents and disbursement of the loan is long-winding and fraught with hassles.
Since these loans require no sign-up fee and are free of any other up-front fees, they do not place any additional burden on the applicant.
Since faxless payday loans are short term loans that depend on the pay slip, there is an incentive for borrowers to pay off the loan at their earliest. Therefore, the chances of carrying over the loan to the next month are minimized.
These loans are disbursed urgently and without the submission of forms. Therefore, even people who have low credit ratings can expect to avail the loan to meet their commitments. In short, applicants are assured of the loan almost 99% of the time.
Faxless payday loans are much in demand these days. Therefore, the moment you apply for these loans, a huge number of loan lenders will offer you their best rates.
However, there are certain disadvantages too. Faxless payday loans are convenient, but they charge a higher rate of interest. However, the inherent nature of this loan justifies the higher interest. These loans are for short term emergencies. It is in the interest of the borrower to apply for these loans only under circumstances that warrant it.
As with any loan, payday loans too are designed for certain purposes. These loans are for people who have a fixed income and need some amount of money urgently. When these loans are availed for the right reasons, they offer timely assistance and can be the source of great comfort and relief.