A faxless payday loan is a type of loan issued in anticipation of a paycheck, and is offered online without the need to fax any documentation. For people without access to a fax machine, this method is often a convenient and easy way to get payday loans. These loans are given prior to one's payday, typically for emergency reasons when people need cash quickly, but do not yet have a paycheck. They are then paid back, with interest, typically within a week or two of receiving the paycheck that was advanced.
In most cases, a payday loan requires one to fax the check stub, or to physically go into the loan location and provide documentation. A faxless payday loan skips this step; typically, the online application will allow the borrower to simply fill in information about his or her employer, his average monthly income, and any information from the previous check stub. Only people who are employed are typically eligible for a faxless payday loan, though credit history is not usually an issue, and they may be given to people who have poor credit or are even in bankruptcy proceedings.
A faxless payday loan will typically have a number of limitations, such as the amount of money that can be loaned. It generally cannot be more than the previous week's pay stub, for example. In addition, some require a minimum monthly income, but this can vary between different lenders. Applicants for these loans will usually need to be at least 18 years old, and often cannot be members of the military. These limitations mean that a payday loan should generally only be used as a last resort, after any emergency savings or credit cards, and it should not become a habit to get these loans.
Once a person fills out an application for a faxless payday loan, the money is typically deposited within one's checking or savings account immediately, or within just a few hours. People without checking or savings accounts are often not eligible for payday loans. It is then available to be used as needed. Of course, it is very important to make sure the company is legitimate before providing any checking account information. The loan documents will also specify when it is due, typically within one to two weeks. It is generally advisable to repay the loan as quickly as possible, because the interest rates on payday loans are generally quite high.