Payday Advances Online Make Life Easier
An increasing number of cash advance lenders are eliminating the need for a borrower to fax or submit paperwork by offering this service online
.What exactly is a payday advance online?
Why, it's the same as a normal payday advance, only with the ease of being able to apply in your pajamas! Payday advances are very convenient for people. When they find they need to get their car repaired before the next work day, getting money as soon as possible is very valuable.
Or what about the little old lady down the street who needs medication quickly but doesn't get her social security check for another two weeks? And let's not forget the family whose furnace goes out in the dead of winter.
Any of these circumstances, along with hundreds of others, prompt people to seek out payday advances. Only, with the Internet, it is even easy to avail one.
Borrowers can now complete everything needed for a payday advance very quickly.
With a no faxing cash advance, borrowers can ask for as little as 100 dollars and up to 1000 dollars or more. A borrower who has full-time employment with regular pay is more likely to get his or her application approved.
Cash advance lenders will verify the borrower's identity, bank account, and employment in the same manner that other payday lenders do, namely by asking for a copy of the borrower's bank statement and pay stub.
The borrower will be required to confirm his personal information over the telephone. Since the institution providing the faxless payday loan is offering the borrower a cash advance on his pay check, employment and bank account information are deemed important.
You might wonder how the lender ensures that his money will be repaid. Instead of putting up a car or a home, in essence, the borrower's paycheck is his collateral.
Therefore, the borrower will have to produce his most recent 30-day bank statement or get his bank to fax it to the lender, which will in turn conduct the employment inquiry by contacting the borrower's employer.
Once the initial verification has been performed, the borrower's employer will not be contacted as a prerequisite for issuing any future faxless cash advance loans applied for and approved thereafter.
A cash advance lender will only question an employer about the borrower's current contact information and current employment if the borrower defaults or the lender suspects fraud.
Once the payday advance lender verifies the information, it instantly sends an email communicating to the borrower whether or not his/her payday loan application has been approved.
The faxless payday loan is then directly deposited into the borrower's checking account, and the lender electronically withdraws the loan payment or finance charge on the borrower's next payday.
Each state is governed differently in regards to how much interest to charge and what the maximum loan amount can be. Make sure to research your state to find out these details.
Finance charges vary from $10 per $100 borrowed to $30 per $100 borrowed. The most common rate is $25 per $100, which translates into a 650% annual interest rate (APR) if the consumer repays the loan in two weeks.
That seems like an astronomical APR. Well it is, compared to traditional loans. But the payday advance online cannot be compared to normal loans. These loans are meant to be very short term so you don't end up paying too much for too long.
It is possible for people to default on their loans and need to extend them. Make sure you avoid this at all costs. Because it will indeed cost you very much. Check with your lender to find out what their fees are if you need to extend your loan.
Consumers should, of course, always beware of any hidden fees or charges. Under the Truth in Lending Act, lenders are required to disclose the cost of no faxing cash advance loans, as they are with respect to other forms of credit.
Institutions offering the faxless payday loan must also submit in writing to the borrower the finance charge as well as the annual percentage rate or APR (the cost of credit on an annual basis).
Once all this is completed, the borrower gets his money in a few short hours!
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