Faxless Payday Loan

Submitted by: KevinB

A faxless payday loan contrasts from traditional loans for numerous reasons. In general, a payday loan does not rely on your credit history and as such enables many more people to qualify for an application. However, current circumstances will play a strong role to determine if you qualify for a payday loan.

Payday loans are generally short term loans that charge extortionate APR rates. In some states they are against the law, so check that your state permits them before considering an application. If the company offering the loan states that it is faxless, then it is still not entirely true - it just means you don't have to fax information yourself, but they will still require identity confirmation in some form.

Generally the information that is requested by a company offering a payday loan will be a confirmation of employment and bank account information. In the cases where people are not in employment but do have an income from another source such as those who receive social security benefits or disability payments, they will still need to confirm the income they receive.

The faxless payday loan will normally involve a customer confirming identification via the telephone and the loan company will require confirmation of employment and bank information. This will normally be done by contacting the bank and receiving a fax from them and a phone call to the employer. In this instance, the employer is informed of your request for the loan while more standard faxed payday loans, the employer will not need to be contacted if you provide sufficient confirmation of your current employment status.

Traditional loan companies should enforce responsible lending and as such will check your ability to repay a loan before they authorize payment. However, Payday loan companies do not lend money on the ability to repay, but whether there is a proven income to justify a loan being issued. In these circumstances, it is hard to state if responsible lending is enforced as expenditure is not factored into the lending equation. Perhaps this reason alone is why many states have outlawed this form of lending.

Overall, a payday loan should only ever be considered as a last resort. The interest repayment rates are normally extortionate and can have severe implications financially should you not be able to make the repayment. Additionally, confirming if a payday loan is even legal in your state before considering one would be strongly advised.