Have you ever heard of a “faxless payday loans”? Many are familiar with a “payday loan” or at least heard of it, but how does it differ from a faxless payday loan? Is it better than a regular payday loan?
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.
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 types of short-term loans. Without having to go through the hassle of faxing documentation, the process is simple and fast.
Are All Payday Lenders Faxless?
Basically, all payday lenders these days can be considered faxless. With the advent of the internet, it doesn’t take much to scan and email paperwork to anyone at any time. While you can still choose to fax your paperwork or visit a payday lender in person, just about every payday loan company accepts applications and documents online.
What Are Payday Loans?
A payday loan is a type of short-term loan that consumers take out in order to cover a pressing expense that they don’t have enough money to pay for. They’re usually made for amounts no more than $1,500, and typically must be paid back by the time their next paycheck comes in.
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 permanent resident of Canada
- Be the age of majority in your province or territory
- Reside in the province or territory the lender works within
- Have an active phone number and email address
- Have an active bank account with recent banking history
- Prove your income and employment through various documents, such as a letter of employment and recent pay stubs
How To Apply For A Faxless Payday Loan
To apply for a faxless payday loan, follow these steps:
1. Find Faxless Payday Loan Lenders
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.
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 paystubs, bank statements and other documents to verify, income, debt and assess your overall financial health.
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.
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.
Borrow Up To $50,000
Benefits Of A Faxless Payday Loan
There are several perks of applying for a faxless payday loan:
- No fax required. In previous years, you would have been required to have access to a fax machine to both send and receive documents when applying for a payday loan. Today, all you need is access to a computer or mobile device to apply for a loan and submit all required documents.
- Quick and convenient application process. The entire application process can be done within minutes and from wherever you happen to be, as long as you have an internet connection.
- Easy approval criteria. There’s no need to have stellar credit to get approved for a faxless payday loan. As long as you’re steadily employed and earn a sufficient income, you should be able to qualify. In fact, credit checks are not required, so regardless of what your credit score is, you have a chance.
- Speed of funding. You can get access to the borrowed funds shortly after loan approval. The funds will be deposited directly into your account, so there’s no need to visit a storefront to pick up a cheque.
- Flexibility. The funds you receive from a faxless payday loan can be used for just about any purpose.
- Paperless process. No physical papers are necessary to apply for a faxless payday loan. Instead, everything is done online.
- Safety. Legitimate payday lenders use robust encryption security measures to ensure all your information is fully protected.
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. In fact, it’s not unheard of to see interest rates as high as 500% or more on faxless payday loans. With rates that high, it can make it very difficult to repay the original loan amount plus the added amount in interest.
- Low Requirements – Payday lenders have very little requirements for approval. As such, even borrowers who have bad credit or poor finances may still qualify.
- 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.
- Quick repayment required. Like traditional payday loans, the money you borrow must be repaid in full by the time you receive your next paycheque from work, which can be anywhere from a couple of weeks to a month. This doesn’t give you much time to come up with the money you must pay back.
- 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 it 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.
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.
Additional Reading
Faxless Payday Loan FAQs
Can you get a no credit check faxless payday loan?
Can you get a faxless payday loan with bad credit?
How do I receive payment from a faxless payday loan?
Are faxless payday loans worth it?
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.
