Faxless Payday Advance

A faxless payday advance is another way of describing the use of an online fourteen day loan company that lends money for a very short amount of time based on the date a person is paid at a regular job. In years past, a borrower seeking one of these types of business transactions would have to fax various forms to the lending company to secure a payday advance, but now a borrower can just fill out a simple form online and if the borrowing request is approved, receive the money the next day in the form of a direct deposit. Thousands of these lending companies have sprouted up all over the world to take advantage of the credit crisis occurring in so many people's lives. In the United States alone, seventy percent of Americans live paycheck to paycheck and have no viable savings to handle rainy day emergencies. Today, many faxless payday advance loan companies exist online as well as thousands locally within the United States. Instead of even having to make the trip a mile or two away, a borrower can employ a local company to handle his borrowing needs online, or choose a company located many states away.

Whether it is a faxless payday advance service that a borrower uses or a local office in a person's own neighborhood, these lenders of fourteen day money up front lending agreements are not without critics, including the government who has moved in to regulate many of the lending practices of such loan companies. The payday lending business meets the needs and/or takes advantage of those persons who are desperate for money in the days before they receive their weekly or bi-weekly paycheck. One of the main reasons government has begun to regulate payday money up front enterprises is because of the large interest rates foisted on borrowers who may be in that desperate mode. In the United States fourteen day cash money up front loans have gone from sometimes over a hundred percent or more down to a regulated high of thirty six percent or less in most cases. In Ohio a faxless payday advance service may not charge over fifteen dollars per hundred lent to a borrower. The fifteen dollar user fee does not include some handling and loan origination costs, but these are also regulated. Other states have much higher rates allowed by law and so if a borrower is going to use a cash or payday money up front service, it is extremely important for that person to do some investigative work before completing a transaction.

Now all the Ohio figures may sound fairly reasonable, but if a person fails to pay the money back because of more hard luck, the loan has an allowable three hundred and ninety one percent annual percentage of interest. So if a hundred dollar faxless payday advance is not repaid in Ohio, it would grow to almost four hundred dollars by the end of the year. A six hundred dollar advance failing to be repaid would cost over thirty six hundred dollars in a year's time! In the neighboring state of Pennsylvania, a hundred dollar faxless payday advance will cost twenty five dollars and some extra charges. If the loan is not repaid in a year, the payday advance company is allowed to charge a thousand one hundred and forty percent rate of interest and the hundred dollars become a debt repayment of a thousand one hundred and forty dollars. Yikes!

If a person fails to pay back a faxless payday advance loan on the day he gets paid at work, the borrower may get a loan extension in some states. States attempting to curb personal debt from spiraling out of control do not allow a loan to be carried for more time. Those allowing the opportunity to carry the loan further will have to pay the costs associated with the original loan and then pay more fees for the extended lending agreement. Seeing a person becoming totally ensnared in this vicious cycle of debt obligation is not difficult to comprehend. King David once said "He that putteth not out his money to usury nor taketh reward against the innocent, he that doeth these things shall never be moved." (Psalm 15:5) Usury, an old word for high interest lending is not a favored practice in God's eyes.

To secure a faxless payday advance loan, a person need not worry about having bad credit or a high debt to income ratio. Companies giving these kinds of lending agreements are concerned with an email address, how much of an advance a person wants, what state does the borrower live in and how often is a person paid at work; weekly, biweekly or monthly. In addition a payday advance lending company will want to know the name of the borrower's bank, the account number and the routing number. Under no circumstance will the company be concerned in the least about a credit score of 350 or a debt to income ratio of sixty percent. Leave those cares to the banks and credit unions.

If a person is determined to have a financial need met by a payday loan advance business, there are some things to remember. Make sure all fees are disclosed upfront either online or in the business's office. Be sure that the loan company is licensed. Look for membership of the lending company in the Better Business Bureau or certification from a national fellowship of similar lenders espousing responsible lending. Doing homework now can help avoid a headache later.

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