No Fax Payday Loan

no fax payday loansMany people that try to get a payday loan online are surprised when asked to fax in some documents, and end up looking for a no fax payday loans as an alternative.

Rather than viewing the request for faxed documents as an inconvenience to be overcome, it’s better to understand why a lender would want faxed copies of your information, and also what type of lender will not require this sort of paperwork.

What the Fax?
Many places that give out payday loans online will require you to fax in your supporting documents such as your pay stub, driver’s license, or a canceled check. Finding a place that doesn’t require these things is rather easy, but comes with its own cautionary concerns.

Disadvantages of No Fax Payday Loans

You might think it’s rather inconvenient to have to fax in your information, but it actually means that you’re dealing with a place that is following protocol a little better than a place that doesn’t require a fax.

Many state laws require lenders to keep some form of paper documentation on file so that there is a record of what happened and it just keeps things more legitimate. Think about it, if a lender just takes people on their word, and on their digital data, they are bound to get scammed out of some cash at some point. And when it comes to lenders, they pass on their losses to the other customers in the form of higher rates.

Offline is Best
The best way to get a payday loan is to visit your local payday loan company. In most instances, those with a brick-and-mortar presence will have regular audits by the state that they’re in, as well as internal audits from within the corporation. What this means to you is that these places will be on the level. They will follow everything according to protocol, because they don’t want to get popped on their next inspection.

They will also be required to keep your data secure within their premises, and you’ll be able to have a face to face interaction with the people that are giving you the money, rather than keeping things completely covert by conducting the transaction entirely online.

If you don’t have a local lender, or you have burned your bridges at your local establishments, you should try to find an online lender that operates as closely to an offline lender as possible. This means that they will have similar requirements, rates, and regulations.

Advantages of No Fax Payday Loans

The benefits of getting no fax payday loans is of course the convenience of not having to fax in your documents. It’s true that faxes are getting less and less popular as email attachments and PDF files become more and more the norm when it comes to sending documents.

Because you won’t have to hunt around town for a FedEx Office to send in the fax, it’s much easier to get your application started at lenders that don’t require a fax. But aside from this, there are no real benefits to going with these sorts of lenders. You should raise an eyebrow at a lender that will give you cash based entirely on what you’re typed into their online application.

Since they don’t know you from Adam, it makes it somewhat of a riskier decision. If they had more of a file on you, at least they would be able to show this type of proof in court if the situation escalates down the road. You might find this advantageous in the moment, but as a consumer you should want to do business with reputable and reliable lenders that run an honest business.

Top No Fax Payday Loan Results
When you’re searching for no fax payday loans you’ll find a crop of lenders that have made their way to the top of the results. This doesn’t mean that they are the answer that you need, it just means that they have optimized their website to show up for these search terms.

For example, PayDay One is the first result, and even they say that some states will require them to fax in the documentation. They can get around this requirement in other states, either through a loophole or just because the laws are less strict in those states. Having to verify the information should not be seen only as something the lender should want, but really it’s something you should want in place as well.

Automatic Withdrawals
Most places that don’t need a fax will require your checking account information. They’ll want the account that your paycheck gets directly deposited into. Their plan is to automatically debit your account when you get paid. But they will also try to debit the amount whenever they can.

Many people run into problems with these sorts of companies, because they won’t have the funds available in the account when the transaction goes through. This means they not only end up paying the high rates from the lender, but also the whopping NSF charges from the bank each time they attempt to take out the money unsuccessfully.

If this continues, it ends up ruining your checking account, forcing you to burn your bridge at the bank, end up on ChexSystems, and go through the hassle of changing your direct deposit at work. This could lead to a lot of hassle trying to open a new checking account, and forces many people to start using prepaid debit cards instead.

Be Sure What Type of Loan You’re Getting
Just because a lender doesn’t require a fax, does not mean they are a scam or a shady operation. It just means that it’s probably not technically a payday loan, but rather an online loan. Online loans are not connected to your paycheck as tightly as a payday loan is, and are not regulated by state or federal legislature in most instances.

You can tell a payday loan from an online loan by a few characteristics. A payday loan will always be due on one of your paydays, and not on a random day from the time you take it out. An online loan will usually involve monthly payments that start a month from the time you take out the money.

Payday loans will also be due in full on your next payday. Online loans will be due in installments on a monthly basis until both the principle and the fee have been paid off.

Payday loans will typically have a fee that is regulated by state laws, and which varies only by how much money you take out. An online loan will have higher fees than a payday loan, which can be exceedingly high. You’re also able to take out more money with an online loan, in some cases $2500 or more, while with a payday loan you’re usually limited to about $600, more in some states, less in others.

They are really two different animals and should be used for different purposes. A payday loan is meant to get you out of a tight jam that you can see the light on the other side of the tunnel. An online is more towards getting you ahead of the game once and for all, but you have to be sure that it will fix all of your financial problems, and that you’ll be able to make the payments on it for the long haul, or you’ll be worse for it.

Where We’re Headed
In the future there likely won’t be a need for faxing in documentation to get a payday loan. As lenders find more and more sophisticated ways to get to your money, they will need less and less assurance that what you say is factual. But right now we’re still at the point where they still have only a few tools at their disposal when it comes to collecting for non-payment.

The Perfect Customer
If you know for a fact that you will be able to complete your transaction on your payday, then going with a no fax loan is not a bad idea. It only creates a problem if you default on your loan, and set into motion a series of unfortunate financial events.

The sad truth though is that even those with the best intentions to repay their loan on time usually find themselves in another, often bigger predicament by the time next payday rolls around, or they are still unable to make ends meet, and these loan companies only add to the trouble.

To Fax or Not to Fax?
So when it comes down to it, it’s in your best interest to visit a lender in person. When that’s not possible, the next best thing is to go with a lender that asks you for documentation to support the claims you make in your application. If you don’t, you could wind up at an unscrupulous organization that will mercilessly debit your bank account with automatic EFT payments until you either pay or your account gets closed by the bank. Always know what you’re getting into with no fax payday loans.

Add Your Own Experience with a No Fax Payday Loan

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