Why Faxless Payday Loans are the Fastest Loan Option

Getting cash fast when a financial emergency hits can be a huge worry, but with faxless payday loans that challenge is taken care of. They are referred to as faxless because the need to fax documentation into the lender not longer applies, thanks to the ability to fill out an application form online.This also makes it possible to get fast loan approval, so that within 24 hours an applicant can have received the good news that they were given the green light, and the cash can have been deposited in their bank account.However, it is important to realize that, despite these advantages, payday loans are also amongst the most costly loans on the market. So, compromises have to be accepted and criteria met.5 Criteria to MeetThere are clear advantages to getting faxless payday loans, not least their speed of approval. But it is important to understand that, for the lender, there are considerable risks involved in lending money to applicants without checking on their credit history. So understandably, there are some strict criteria applicants need to meet.On the most basic level, each borrower must be a citizen of USA, and be aged at least 18 years old. They must also be able to provide confirmation of having a reliable source of income for a period of at least 6 months prior to the application date. To get fast loan approval, and get the funds in just a matter of hours, it is also necessary to have an active bank account.Finally, applicants should earn a monthly salary of no less than $1,000 so as to be able to cover the cost of repayments with ease. When filling out the payday loan application form online, it is essential that accurate information is provided.Terms and ConditionsThere is one key advantage to getting a faxless payday loan, and that is the speed with which approval can be granted and the money deposited into the bank account of the borrower. It means that, in times of financial crisis, there is a way to access the funds needed to handle whatever the crisis is.However, there are terms and conditions that need to be accepted that make the deal far from ideal, even with the benefit of fast loan approval. For a start, the loan sum is limited to between $100 and $1,500, principally because of the size of the salary check. Another factor is that interest can be as high as 30%, making the loan very expensive.Also, with at a term of only 30 days, the pressure to make the one repayment sum is extremely high. For example, a payday loan of $1,500, at 30%, needs $1,950 to be cleared. That is a large sum to take out of one paycheck, leaving little to meet the regular monthly obligations.Bad Credit InfluenceFor the most part, faxless payday loans can be secured without any need for a credit check. This is because the loan is granted on the back of an upcoming paycheck, so is expected to be repaid in full as soon as the next paycheck is deposited in the bank.But when a larger sum is sought, it may be necessary for the lender to check the credit history. This can happen if the borrower is seeking as little as $3,000, and the repayment term is 90 days. The risk of defaulting is increased, so fast loan approval is not generally available.Also, even if the payday loan is granted, the pressure of repaying almost $4,000 in just 3 months can be too much for some applicants.