Payday Loans

What Are The Benefits Of Borrowing A No Faxing Cash Advance?

There is no straight answer to this question. Though there seems to be an array of attractive features that a no faxing cash advance program offers, there are several negatives aspects as well, which you must be well aware of. You can make an informed decision only after reviewing both its pros and cons thoroughly. You have to look at both sides of the coin. Where payday loan companies have been doing aggressive marketing for these short-term cash advance programs, the Federal Trade Commission and several other organizations on the other hand have been warning consumers against borrowing these loans. Likewise, you also need to look into the harsh fact that sixteen states have strictly banned this type of lending program.

Lenders Advertise It As A Fast And Easy Loan

You must now be wondering if lenders make false claims when they advertise no faxing cash advance programs as fast and easy loans. No, these are not false claims. The loans are indeed easy to obtain and the approval in most cases comes within a matter of just a few hours. As the term suggests, the applicants are not required to fax any document or go through complex paperwork. Besides that, lenders do not even check their credit score. Even if the applicants have poor or bad credit, they can still qualify for it, as the eligibility criteria for these loans are very simple. You just have to be a US citizen and at least 18 years old with a decent employment record and with an active checking bank account in your name. So, as you can see, the loans are indeed fast and easy; the only thing is that they are extremely expensive. Lenders try to hide the costly nature of these loans through the wallpapers of lucrative features. In general, a $100 of loan taken for as small a period as 14 days can cost you anywhere around $150-$170. The overall outstanding debt balance grows much faster if you miss the due date and are late by a few months in repayment.

The FTC Warns Consumers Against It

This is the predatory nature of no faxing cash advance programs why the Federal Trade Commission warns consumers against it. Since these short-term loans have been designed in a way that traps most of the borrowers into a viscous cycle of debts, many states have strictly banned payday lending in an attempt to protect consumers from such trap. Even the majority of other states, where payday lending is legal, there are certain legal restrictions on lenders.

There Are Better Alternatives Available

As you can see, no faxing cash advance programs are not just extremely expensive but can also be quite risky for you. That is the reason why financial experts advise against borrowing these loans. Considering the lucrative features that these loans offer, you may feel tempted to go ahead and borrow these cash advances, but it does not make a wise financial decision, especially when there is a wide array of better alternatives available out there. You can visit the ‘payday loan alternative’ section in this blog for more information on how you can avoid no fax payday loans and still get the much needed cash to meet your financial emergencies.

Overall, there are definitely some attractive features with no faxing cash advance programs, but the risk factors associated with the same do not make it a wise financing solution, especially for people with limited monthly income.

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