About a No Fax Needed Payday Loan

By J. Edward Casteele

  • Overview

    When looking for a payday loan online, many lenders require you to fax them a number of documents to verify your identity and the fact that you are employed. This can be a hassle and in some cases can delay your loan for several days until you have access to a fax machine. No-fax payday loans pride themselves on not having this requirement, generally being able to substitute a phone interview for verification purposes.
  • Function

    No-fax payday loans allow individuals to borrow a small amount of money for a period of generally 2 to 4 weeks. The loan amounts can range from as low as $200 to as much as $1,500, based on the individual's income. They are referred to as "payday loans" or "payday advance loans" because the payment due dates are focused around when the individual gets paid; the loan provides needed funds quickly when payday is too far away.
  • Significance

    No-fax payday loans provide a level of convenience similar to that of local check advance lenders. Online loans can be inconvenient because the lender needs to be able to confirm the borrower's identity and finances, and this is often done by having him fax documents such as a copy of his driver's license, a copy of his Social Security card, a bank statement, and a copy of his most recent paycheck stub. Payday loans where no fax is needed generally substitute telephone calls for this verification, getting needed information directly from the borrower and calling his employer to confirm that he actually works there.


  • Loan Terms

    Most payday loans are for a period of 2 to 4 weeks, and no-fax loans generally fall into the same repayment window. Interest rates are generally higher for payday loans than with other forms of lending due to the short repayment period; most loans will be repaid before a significant amount of interest can be accrued. Many lenders for these loans will use a flat rate based on the amount that you borrow instead of a specific interest rate, though interest will be applied if the repayment period is extended beyond the initial 2 to 4 weeks.
  • Benefits

    The main benefit of payday loans with no fax needed is that they are convenient. They feature the same convenience as standard payday loans in regards to letting a borrower get the money that she needs now, instead of having to wait until she receives her next paycheck, as well as the added convenience of not having to fax in a large amount of paperwork. Depending on how easy it is for the borrower to get access to a fax machine, the removal of the faxing of paperwork can significantly decrease the amount of time that it takes her to verify her identity and receive the money she wishes to borrow.
  • Verification

    Most no-fax payday loan companies will verify information by making two phone calls, one to the borrower and one to his employer. The calls do not take long (especially the one to the employer, as it's just a means of making sure that the borrower is actually employed), and once the calls are complete the loan will be issued. If there is some problem with verification, then the borrower may still be asked to fax in specific items to complete the verification process.
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