A faxless cash advance is a short-term loan that is approved based on employment income and confirmation of payroll direct deposit. A cash advance is also known as a payday advance and is due in full on your next payday. There are no credit checks done with a cash advance. Instead, the applicant is required to provide detailed financial information for a short-term loan.
In a faxless cash advance, the applicant completes an online form and provides the company with the website address for their bank, their bank account number, and password. A representative from the finance company uses this information to access the banking details and confirm the payroll is being deposited directly into the applicant’s bank account. At the same time, the company checks for any other outstanding payday loans.
In a standard cash advance, the applicant is required to provide paper copies of their most recent pay statements, the last 30 to 60 days of banking transactions. A standard form is printed, signed, and faxed back to the company along with all the other documents before the loan is approved. Although this industry is growing quickly, there is a great deal of criticism surrounding the very high interest rates being charged. The general perception is that these firms prey on low-income people with bad or poor credit.
Many companies that offer a faxless cash advance are Internet-based firms, with no physical storefront. Keep in mind that anyone with your bank account and password can log into your online banking and transfer the funds to another account. In addition, any fraud protection provided by your bank is void if you willingly gave your security information to a third party. If money is transferred into another account without your permission, you will have to go to court in order to have those funds returned. If you choose to use this type of financing, change your banking password immediately after the loan has been confirmed.
Keep a close eye on your banking transactions to ensure that all the transactions are legitimate. This is a very expensive form of financing, with interest rates ranging between 35 to 65% annual interest rate. Any finance, application, or processing fees are added to the interest cost. There has been an explosive growth in the use of faxless cash advance firms in recent years, even though the interest rates are very close to those charged by loan sharks. In recent years, several government agencies have asked for legislation to set a new limit on the interest rates that can be charged by cash advance firms.