You probably are familiar with payday loans, where you get an advance before your paycheck arrives and pay off the advance when you have the funds. With the Internet age, there is a new product line that can get you money quickly and easily. These faxless loans come with both advantages and disadvantages, so knowing that they are right for you is the first step you should undertake before signing up for this type of funding.
The main benefit of faxless payday loans is timing. You can literally get your money in an hour. You simply go online, fill out a brief form, show proof of income, and that’s it. Another advantage is that most of these online companies offer 100 percent acceptance, so you are basically guaranteed the loan before you apply, assuming you have a job and the income you’ve reported. Finally, this type of payday loans business rarely or never pull your credit report. That means you can have completely wrecked credit and still qualify for a loan.
Now, the downside. These loans tend to be for relatively small amounts, generally maxing out at $1,000. That means you will not be able to get a lot of money at your disposal, even if your income is much higher than the loan amount. Above all else, the expense of this type of loan means you want to limit your involvement with them. For example, a 20 percent fee is generally the going rate, which means if you borrow $100, you’ll be paying back $120. That’s if you pay back on time. If you don’t, another $20 will be assessed and you’ll have interest added as well. You can see how this type of lending is very profitable for the lender and not a good deal for the borrower.
When does this type of transaction make sense? If you have poor credit and an emergency. For example, if your car breaks down and you cannot charge the repair, you could use faxless loans to get your car back up and running so that you don’t lose your job. In addition, if you are risking having your utilities or phone service turned off (and would have to put up a hefty deposit to get them turned back on), then the fees you pay for this type of payday loan would be far better than the alternative.
- Information on 30 Day Payday Loans (debt-consolidation-2u.com)
- Military Debt Consolidation – Pros and Cons (2010taxes.org)