Payday Loans

The Hidden Catches Behind Payday Advance No Faxing

Payday advance no faxing programs are very popular among those people who want instant cash without much paperwork. These types of lending programs do not require you to fax any copies of documents as a proof of your eligibility, such as copies of pay stubs, banks statements, residential address and bank details. You have to provide all the details in the online application form. The rest of the things are taken care of by the payday loan company you are trying to borrow from. This is mainly because of all these factors why no fax payday loans look such a lucrative option to borrow money. But, there are certain hidden catches behind these types of loans which you must be well aware of. Following is a brief rundown on it.

How Do No Faxing Payday Lenders Verify The Details Provided By You?

Just because payday advances no faxing programs offer you a paperless application process, it does not mean that the details provided by you are not verified at all. In general, such lenders check your Teletrack report and also avail various other services offered by Teletrack, which is an agency that works similar to credit bureaus, but they work in an unconventional way and their services are mostly used by payday lenders, retail stores and other such companies. Whether it is about checking your bank account details, employment record, your residential status or how risky a borrower you can be, Teletrack collects all the information for the lender. Since Teletrack maintains reports about the financial activities of consumers, the process does not take much time. But still, it may take up to two to three business days before a decision can be made by the lender in question about the approval of your loan application.

What’s The Hidden Catch?

Lenders that offer payday advances no faxing programs often charge a hefty amount of processing fee (to cover the expenses involved in availing Teletrack services), which is deducted directly from your approved loan amount. It means if you are borrowing a $500 of payday loan and your application gets approved, you may actually get only $450

transferred in your bank account; the $50 is deducted as processing fee. The problem here is that lenders often do not disclose these charges in their advertisements. But since the US laws have made it mandatory for all lenders to describe the terms and provisions clearly in their written loan contracts, you are strongly recommended to go through the fine prints thoroughly. You must read the “disclosure” section in particular, where all those terms are made clear that are otherwise not advertised. If certain terms sound vague and not clear, you must not hesitate in demanding a written clarification for the same.

You should sign the loan contract only if you understand all the charges applicable to payday advances no faxing program. Besides that, like any other payday loan, the usual risk factors are also there, such as extremely high interest rates and the chances of debt trap because of provisions like automatic rollovers. So, stop listening to your temptation and make a decision on the basis of a thorough calculation and well researched information.

Payday advance no faxing programs are very popular among those people who want instant cash without much paperwork. These types of lending programs do not require you to fax any copies of documents as a proof of your eligibility, such as copies of pay

stubs, banks statements, residential address and bank details. You have to provide all the details in the online application form. The rest of the things are taken care of by the payday loan company you are trying to borrow from. This is mainly because of all these factors why no fax payday loans look such a lucrative option to borrow money. But, there are certain hidden catches behind these types of loans which you must be well aware of. Following is a brief rundown on it.

;


Custom Search

Tags: , , , , , , ,
Posted in Risk Factors | No Comments »

Leave a Reply

You must be logged in to post a comment.