When To Take A Faxless Payday Loan?
Alice Smith
February 12, 2008
The growing popularity of faxless payday loan offers have greatly increased competition and made it a "buyer´s market"! Today, it is even possible to get a cash advance against paycheck at 12% interest for 2 weeks! However, the Consumer Federation of America conducted a survey on 100 payday lending companies, and it was found that typical finance charges, on a no fax payday loan, are still in the range of $20-$30 per $100 borrowed. And the most common paycheck loans still cost $25 per $100 of advance amount.
Who Needs Cash Advance Against Paycheck?
Living on a paycheck-to-paycheck basis, it becomes very difficult to handle emergency financial situations in the middle of the month. There could be unforeseen hospital bills to pay for, or there could be some unexpectedly high utility bills in a month! Or maybe you were obliged to help out a relative´s family who had been thrown out of their home because of a default in repaying their home loan! A faxless pay day loan can get you out of the mess.
Lenders advocate that such high interest rates (400% to 800% APR) on an instant no fax payday loan should not be compared with traditional loans. Instead, these advances are meant for saving people from incurring those late payment fees and penalties from other sources, when sufficient credit cannot be arranged in time. Here is a quick comparison between the costs of an instant no faxing payday loan and the alternatives it guards against!
A $100 payday advance costs about $15 for 2 weeks.
A $100 bounced check generally incurs a merchant-fee of $48 for 2 weeks.
A $100 credit card balance accumulates a late payment penalty of $26 for 2 weeks.
A $100 utility bill, if not paid on time, would lead to the discontinuation of service, requiring $50 reconnection fees.
From the above data, it becomes obvious that in such situations, it is better to take a faxless payday loan than play with your credit ratings!
Caution!
Remember that you pay a heavy amount of interest on such loans, and that too on a cumulative basis. It means that if you don´t clear the loan after 2 weeks, you will have to pay further interest on the interest as well! On a repetitive basis, this could become very expensive! Also, if your post-dated check against the loan gets bounced due to insufficient bank-balance, you accrue bank penalties and the lending company can accuse you of fraud! So take a faxless pay day loan only if you can repay it on time.
Faxless payday loan, which is also known as an instant no fax payday loan, requires no credit verification. Hence, this no fax payday loan or instant no faxing payday loan gets approved almost within minutes.
Who Needs Cash Advance Against Paycheck?
Living on a paycheck-to-paycheck basis, it becomes very difficult to handle emergency financial situations in the middle of the month. There could be unforeseen hospital bills to pay for, or there could be some unexpectedly high utility bills in a month! Or maybe you were obliged to help out a relative´s family who had been thrown out of their home because of a default in repaying their home loan! A faxless pay day loan can get you out of the mess.
Lenders advocate that such high interest rates (400% to 800% APR) on an instant no fax payday loan should not be compared with traditional loans. Instead, these advances are meant for saving people from incurring those late payment fees and penalties from other sources, when sufficient credit cannot be arranged in time. Here is a quick comparison between the costs of an instant no faxing payday loan and the alternatives it guards against!
From the above data, it becomes obvious that in such situations, it is better to take a faxless payday loan than play with your credit ratings!
Caution!
Remember that you pay a heavy amount of interest on such loans, and that too on a cumulative basis. It means that if you don´t clear the loan after 2 weeks, you will have to pay further interest on the interest as well! On a repetitive basis, this could become very expensive! Also, if your post-dated check against the loan gets bounced due to insufficient bank-balance, you accrue bank penalties and the lending company can accuse you of fraud! So take a faxless pay day loan only if you can repay it on time.
Faxless payday loan, which is also known as an instant no fax payday loan, requires no credit verification. Hence, this no fax payday loan or instant no faxing payday loan gets approved almost within minutes.
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