Loan Facts – No Fax, Job Verification, No Documents, Completely Online
If you are in search of some money fast, then you might want to look at the possibilities of taking on a payday loan. These loans are designed to meet the needs of people that do not have enough money to survive until their next payday. These loans typically do not require the applicant to fax over any documents, and in fact the whole process is done via the internet. In this article, we will be taking a closer look at some of the finer points to do with these types of loan.
“Payday loans range in size from $100 to $1,000, depending on state legal maximums. The average loan term is about two weeks. Loans typically cost 400% annual interest (APR) or more. The finance charge ranges from $15 to $30 to borrow $100. For two-week loans, these finance charges result in interest rates from 390 to 780% APR. Shorter term loans have even higher APRs.”
The Application Process
Applying for a payday loan online is usually straightforward as most of it is done via the lenders website. In the past, you had to fax over proof of your identity, but that is becoming less popular, and it is more likely that you will just be expected to be in possession of a checking account, with a charge card.
Obtaining an online payday loan is much more convenient than going to the office of the lender, as it can all be done from the comfort of your own home. There is a greater risk of identity fraud though, as there is no guarantee that the person that the lending company is dealing with is actually you.
These types of loans are good for those people that want cash paid into their accounts really quickly, and that is something which attracts a lot of people. However, in order to avoid the risks of their identity being stolen, it is important to make sure that the website being used is secure.
Be Wary Of Fraudsters
An extra issue that may impact the client’s decision to apply for an online loan is the security of their personal details and info. It is important for the safety of your identity that you only deal with online loan companies that show proof that their website is secure. On top of which, you need to know that you are not being scammed, and that could mean picking up the telephone and speaking to someone at the lending company.
If you come across a website that does not show proof that it is secure, and that any data you send to them is going to be encrypted, then move on and look elsewhere. Plus, if there is no contact information on their website, it might be a website set up by criminals in order to capture your identity and banking information. So again, it is best to look elsewhere. The reason that you are looking at these sites is because you do not have much money, so do not let criminals get their hands on what little cash you do have.
So Just How Easy Is It To Get A Loan Such As This?
It is said that these loans are, in actual fact, too easy to obtain, and that is one of the reasons why so many people are attracted to them in the first place. The lending companies have been accused of preying on the most vulnerable and needy sections of society, and then offering those people amounts of cash that they are unable to pay back. This difficulty in paying back the loan is made even more difficult due to the short length of the loan, with turnover times as little as a few days to a month.
One criterion that you will need to adhere to is the one that states that you have a job, although there seems to be more lenders now than ever before that do not even need this info. However, some online lenders do, and in order to prove that you are in employment, you will be asked to provide the name and address of the company that you work for, as well as the name of your boss.
Along with the difficulty in paying back the loan, there is the added problem of using up all or nearly all of their next paycheck when the time comes to repay the loan. Either way, it is not unusual for people to discover that they do not have much money, if any at all, available to them, when they next get paid. By sending a large part of their monthly income to the online loan company to cover their debt repayments, they will soon find that they do not have much money left over, and certainly not enough to see them through until their next payday.
This is something that is known as a cycle of debt, or the debt trap, and it can be difficult to escape from. When their money runs out, and there is no alternative, then it is back to the online loan company for yet another loan to cover the following month’s expenses, and this continues until the cycle is broken.
No Documents To Sign And No Waiting Days For A Decision?
In the past, the only way to get financial help was to go to a bank or the store of a lending company, fill out reams of paperwork, offer collateral, tell the bank clerk what you intend to do with the money, sign an application form and then go home empty handed. That is not to say that you had been rejected, it was just that the bank needed a specialist risk analyst to go through your application in order to discover whether you were in a position to pay back the loan, plus interest.
This used to be a procedure that took a few weeks to complete, and then you would either receive a letter from the bank informing you of their decision, or they would ask you to visit your local branch. If you had been turned down, then that would be the end of the matter. If you had been accepted, it meant returning to the bank, signing more paperwork, before finally getting your hands on the money. So, as you can see, it was a particularly difficult and, not to mention, time consuming process. Then computers came along, as did credit scores, and it took less time to get a loan. However, there were still lots of paperwork to fill out.
The Birth Of Speedy Cash
Of course, all of that changed when the internet came into existence in the latter years of the 20th century, and all of a sudden it became even easier and quicker to get a loan. There was still the problem of credit worthiness, as well as those annoying credit scores, but at least the process was much more streamlined overall.
Nowadays, it can be easy to get a loan in a few hours, even if you have a really poor credit score. It is loans such as these that many people are turning to in their hour of need. These loans are well known for their high fees, rates of interest that when worked out as an APR, can reach four figures quite easily, as well as having the ability to trap people in a cycle of debt.
However, before a person rushes out to get one of these loans due to desperation, they need to look at some of the alternatives, and in the paragraphs below, we will look at some of the more popular ones.
Other Ways To Get Some Cash
Seek Help From Those People Closest To You
In spite of the fact that it is not exactly the easiest solution to a monetary shortfall, it might be worth asking those people that you are closest to if they can help. They may not want to see you heading to a payday loan company, so they may be happy to help you with a short term cash loan. Asking family members and friends if they can lend you money can be difficult, but it is a good way to get some much needed cash without the stress that comes with worrying about repayment dates and charges.
Budgeting And Saving
Saving money on what you spend on a daily basis for items such as food is something that most people fail to do, and this is something that people need educating about. It is important because saving even the smallest amounts of cash over a period of time is enough to have a small amount of money to use in an emergency. Even if you only have a couple of hundred dollars put aside, that is a couple of hundred dollars that you do not need to borrow from an online loan company.
Seek Assistance From Your Employer
There are a number of online lenders that can offer a cash advance service at times when you require money in a hurry, and this can be an answer to your money problems. However, you may want to ask for an advance on your next salary check that will not require you to pay any money back, let alone interest. This solution is to ask your employer for an advance on your next paycheck, as some companies do allow this in exceptional circumstances.
The Bottom Line
These loans may seem like an answer to your financial problems, however, they are only a good idea if you have enough cash to pay them back, without being left with any cash out of your next salary check. Getting the cash is as easy as filling out a couple of online forms, and you could have the money in your account in the same day. It is important to understand the problems that you could face when taking on a loan such as this, and some of the things that you need to be wary about are the high rates of interest, and the penalties for late payment.