What makes faxless payday loans so convenient?
These days, there are various types of loans. And a wise borrower plans one’s debt well to make sure that this will come out to be profitable. If you need to borrow a small amount of money and want to get it fast, you can choose faxless payday loans with instant online application. If you have no idea what these loans are all about then may as well read along.
Perhaps you may think that faxless payday loans must be paid during pay days, you need to know that this is not always the case. The truth is; they carry such name because the amount released for the loan will all depend on your salary rate. Obviously, you cannot borrow an amount that you are not capable of paying back. Hence, you may be required for employment records or pay slip to prove that you can do the necessary loan repayment.
Payday loans with no faxing are also known for their high interest rates. However, you need to know that these are regulated by the government accordingly to prevent possible usury. There is a limit imposed on annual percentage rate that lenders can claim from their clients. But still, the interest charged on this type of loan is higher than other forms of lending. In fact, you can be charged to as much as $15 or more for every $100 that you borrow in just a space of 2 weeks. Hence, it always pays to compare interest rates. This way, you will have the advantage of saving on the interests.
However, consumers give less importance on the implemented APR (Annual Percentage rate). After all, Payday Loans are meant to be paid in just a few days or weeks. However, you still need to be aware that a $15 dollar interest for every $100 loan means paying to as much as 390% annual interest. Therefore, you must only avail instant application payday loans when the need for fast cash is really urgent. And according to a study conducted on faxless cash loans, the default rate of these types of loans can cost to as much as ¼ of the borrowers annual income.
The common practice done nowadays is lending someone an amount that one has to pay when payday arrives. However, some may opt to extend their term but this would mean bigger interest to pay as well. For security, the lender may require proof of income on the borrower. This can be through a bank statement or pay slips. The traditional way of doing it is issuing a post dated check in exchange for the amount that was cashed out.
However, the amount reflected on the check has its corresponding interest rate and fees on top of the loaned amount. The borrower is expected to return on the maturity date to pay the amount in cash. However, failure to appear will compel the lender to deposit the check. Should there be insufficient fund on the account; the borrower will be forced to pay the fee for the bounced check on top of the amount that one has to give to the lender.