No Fax Payday Advance

Payday loan companies operate online, over the phone, and through retail shopping centers to individual borrowers. But where an offline lender doesn’t require much validation of information beyond what can be provided face to face, online and over the phone payday advance companies usually require a faxed copy of income reports, employment proof, or even the loan application. However, recent changes to company policy and state regulations now allow for borrowers to access small amounts of cash through a no fax payday advance.

Companies offer borrowers a no fax payday advance because they are considerably more convenient for borrowers. Companies report that it is early in the lending process before documents are signed and sent back that borrowers often seek out additional sources for cash, or simply give up all together. Most American homes never had a FAX machine, and the only access individuals have to a fax machine is either at work, or through an office supply company, which often charge $1-2 to send a one-page fax long distance.

No Fax Payday Advances
No fax payday advances do not require a physical signature, and often require only very little proof of income, expenses, or personal information, since the majority of loans are for amounts of $500-1500.

A no fax payday advance works just like any other, but because no documents need be faxed to the company, nothing needs to be signed. Instead companies use what is known as an online signature. To sign, borrowers need only type their name in a text entry which is then considered by the law to be a legal signature of the loan agreement.

Steps for No Fax Loans:
To access a payday loan without faxing documentation, you’ll need to follow the following steps:

Gather tax and income information – Ordinarily, a payday loan company will request income verification or tax documents in order to determine whether or not you’re a credible borrower. This varies by company, as some require confirmation of income, while others may simply pull your credit report to determine whether or not they will issue you a new payday advance.

Determine loan terms – Depending on your present situation, you may want a loan for two weeks, a month, or more. A two-week loan is less costly, since fees are minimized (fees are usually charged monthly). However, if you aren’t likely to be paid within the next two weeks, then it may be best to accept a loan with a payoff date one month in the future. One month is, for most people, time enough to accumulate cash from a monthly paycheck, or from two bi-weekly paychecks.

Seek out a lender – When shopping for a lender, you’ll want to compare both the fees and interest charges for your future loan. Loans with high fees will have a lower APR. Loans with low fees will have a higher APR. In some cases, it makes sense to accept a higher APR in exchange for a lower monthly fee. For example: A $500 loan with a $20 monthly fee and 10% annual interest rate will have an effective annual interest rate of greater than 60%, since the $20 monthly fee is essentially a 4% monthly interest charge.

On the other hand, borrowers who suspect that they won’t be able to pay off the loan quickly will benefit from a higher APR loan with lower fees. Monthly fees are not normally assessed based on the total amount borrowed, and can be flat charges based on a range of account balances. If you were to borrow $500 and pay a 20% APR, you’d pay $100 interest over the course of the loan. With a $10 monthly fee, the interest rate would rise to a total of 20% plus $120, or 24% of the loan balance, for an effective annual interest rate of 44% annually.

When No Fax Makes Sense
Payday loan companies generally auto-approve most loans of less than $1000, so it is not required that you fax information for such small amounts.

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