You may be familiar with a payday loan, but have you heard of a faxless payday loan? These types of short-term loans let you skip the paperwork and get access to cash quickly without faxing documents.
Read on to learn more about faxless payday loans and why they may be a great option if you need fast cash.
Key Points
- A faxless payday loan is a quick, short-term loan that doesn’t require faxing documents.
- Faxless payday loans allow for fast online approval and quick funding.
- Consider the high cost and short repayment periods of faxless loans before applying.
What Is A Faxless Payday Loan?
A faxless payday loan is essentially the same thing as a traditional payday loan, except that the documentation required by the lender can be submitted electronically rather than having to be faxed.
Lenders can get the information they require within minutes, and approvals can even be given within a couple of hours. In some cases, repeat borrowers with the same payday lender can go straight to loan approval without having to re-submit their paperwork, since the lender will already have it all on file.
Features Of A Faxless Payday Loan
| Loan Amount | Up to $1,500 |
| Loan Term | By your next paycheque (up to 62 days ) |
| Loan Cost | $14 per $100 borrowed (35% AIR in QC, YT, NU, NT) |
| Eligibility | -Be of the age of majority in your province -Be a Canadian citizen or a resident of Canada -Have a steady source of income -Have an active bank account |
| Application | -Applications can be completed online without any in-person visits -Documents proving identity, income and/or employment can be submitted online |
| Funding Method | Usually, direct deposit or e-transfer |
What’s The Purpose Of Faxless Payday Loans?
Faxless payday loans are designed to make it very easy for borrowers to apply and get approved for these short-term loans. The process is simple and fast since you don’t have to go through the hassle of faxing documentation.
With all the technological advancements, faxing documents is no longer an option for many payday lenders.
Where Can You Get An Online Payday Loan?
What Do You Need To Be Eligible For A Faxless Payday Loan?
To qualify for a faxless payday loan, you’ll need to meet the following criteria:
- Be a Canadian citizen or a resident of Canada
- Be the age of majority in your province or territory
- Reside in the province or territory where the lender works
- Have an active phone number and email address
- Have an active bank account with recent banking history
- Have a steady income
How To Apply For A Faxless Payday Loan
To apply for a faxless payday loan, follow these steps:
Step 1: Find A Faxless Payday Loan Lender
Use an online loan aggregator to find faxless payday lenders and compare their offers, including their interest rates and terms, based on your personal and financial information. You can easily and quickly find these lenders with the help of Loans Canada.
Step 2: Apply For The Faxless Payday Loan
Once you’ve chosen a specific faxless payday lender, visit their website and apply online. You’ll need to provide the requested personal and financial information and upload any required documents.
Personal information may include the following:
- Full name
- Birth date
- Contact information
- Social Insurance Number (SIN)
- Address
Financial information may include the following:
- Income
- Employer
- Employment status
- Salary
- Next payday
The lender may require you to upload your pay stubs, bank statements and other documents to verify your income, debt, and assess your overall financial health.
| Instant Bank Verification (IBV) Many faxless payday lenders use instant bank verification to quickly access a borrower’s financial information without requiring any documentation. This allows for quick approvals by securely verifying income and identity. Learn more: What Is Instant Bank Verification? |
Step 3: Receive Loan Approval
Within a few minutes following loan application submission, you should receive pre-approval if all your financial and personal information meets the lender’s requirements. Once the lender verifies your information, you should receive a loan approval and contract to sign.
Step 4: Receive Your Funds
After signing the loan contract following loan approval, you’ll receive your funds within a few minutes if sent via e-Transfer, or within the same day (or next business day if applying after business hours) if the funds are sent via direct deposit.
Benefits Of A Faxless Payday Loan
There are several perks of applying for a faxless payday loan:
No Fax Required
Years ago, you would have been required to have access to a fax machine to both send and receive documents when applying for a payday loan remotely. No physical papers are necessary to apply for a faxless payday loan. Instead, everything is done online.
All you need is access to a computer or mobile device to apply for a loan and submit all required documents.
Quick Application And Fast Funding
The entire application process can be done within minutes and from wherever you happen to be, as long as you have an internet connection.
You can get access to the borrowed funds shortly after loan approval. The funds will be deposited directly into your account or via e-transfer, so there’s no need to visit a storefront to pick up a cheque.
Easy Approval Criteria
A faxless payday loan is essentially a regular payday loan that you apply for online. Like a regular payday loan, there are generally no credit checks, which makes them a great option for bad credit borrowers. Moreover, depending on the payday lender, you may not need a job to qualify, so long as you have some source of income, including certain government benefits.
Secure
Legitimate payday lenders use robust encryption security measures to ensure all your information is fully protected. Plus, many use IBV services to quickly and securely verify your income and identity.
Risks Of Faxless Payday Loans
While there are plenty of benefits to faxless payday loans, there are a few drawbacks to consider:
High Interest
The interest rates that are charged are typically exorbitant, making payday loans very difficult to repay the original loan amount plus the added amount in interest.
Automatic Withdrawals
Your payday lender will automatically withdraw your payments once they’re due. You’ll need to make sure you have enough money in your account to cover these payments. If not, your loan payments may be considered missed, and you could be charged an NSF fee from your bank and lender.
No In-Person Interaction
If you’re the type who prefers to have some face-to-face dealings with a lender, especially when it comes to submitting sensitive personal information or obtaining your loaned funds, a faxless payday loan may not be suitable for you.
Alternatives To Faxless Payday Loans
Faxless payday loans may be easy to qualify for and can provide you with much-needed funds very quickly, but they can also be very expensive and difficult to repay with such short payment terms. There are other options available if you need fast cash to consider before applying for a faxless payday loan, including the following:
Personal Loans
Rather than having to repay the entire loan amount in one lump sum in a short time period as is the case with a payday loan, a personal installment loan allows the loan to be paid off in regular installments over an extended period of time. In addition, the interest rates are not nearly as high as payday loans. This makes a personal loan much easier to pay off.
Personal Line Of Credit
Many online lenders in Canada offer personal lines of credit, which work somewhat like a credit card. With a line of credit, you can borrow up to a specific limit and pay interest only on the amount withdrawn. Once you repay the borrowed funds, you can continue to borrow from your line of credit over and over again and make repayments according to your contract.
This is a good alternative to a faxless payday loan because there are no stringent repayment dates to adhere to.
Learn more: How To Use A Line Of Credit
Credit Card Cash Advance
If you have a credit card, you may be able to access cash from your account, as long as your withdrawals don’t exceed your credit limit. If you don’t repay the funds withdrawn by the next payment due date and carry a balance month over month, you’ll pay interest on the outstanding amount.
Keep in mind that credit card cash advance rates are very high, typically between the 22.99% to 24.99% mark. Further, interest on credit card cash advances starts to accrue right away, so you’ll start paying interest immediately following your advance. For this reason, you’ll want to pay off your balance as quickly as possible to avoid continued interest charges.
How Much Do Faxless Payday Loans Cost?
In Canada, payday lenders cannot charge any more than $14 per $100 borrowed. In Quebec, lenders who provide high-cost credit products cannot charge any more than 35% AIR on loans. While the Criminal Code sets the framework for interest rates across the country, provincial governments regulate payday lenders in their provinces.
Other fees may also be involved with faxless payday loans, including the following:
- Fee For Dishonored Cheque/Pre-Authorized Debit: When the lender tries to cash your cheque or accept a pre-authorized debit for loan repayment that doesn’t go through, the lender may charge you a fee of up to $20.
- Non-Sufficient Funds (NSF) Fees: If you don’t have enough money in your bank account when the lender withdraws your payment, you may be charged an NSF fee by your financial institution.
| Example: To help you visualize how much a faxless payday loan may cost you, let’s assume you’re borrowing $500 with a 14-day repayment term. In this case, your total loan cost would be $570, given the rate of $14 per $100 borrowed. |
Learn more: What Are Payday Loan Interest Rates In Canada?
Final Thoughts
Many Canadians find themselves needing fast cash to cover last-minute expenses and sometimes turn to payday loans to obtain the money they require. Faxless payday loans make the application and approval process simple and convenient. They don’t require any documentation to be faxed or presented in person.
However, as easy as these types of loans are, borrowers need to be aware that they can be extremely expensive and very difficult to pay back in such a short amount of time. Before you take out this type of loan – or any other type of loan – be sure to do your due diligence and make a sound decision that’s best for you.
