No Fax Payday Advance
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A no fax payday advance is another way of describing the paycheck loan business that stretches across the United States and around the world. While some states in America have so regulated these quick loan lenders that many companies have folded up and disappeared, many states have allowed the practice to flourish and even more so during difficult economic times. Critics have decried these lenders as predatory, but they do fulfill a certain need which will be discussed in a moment. The lenders are quick to answer the critics by reminding them that their customers are fully employed and have proven that they have been for at least several months. While their sister businesses are located in a brick and mortar setting, the no fax payday advance genre of lender is an online lender practicing the same type of lending service.
The term no fax payday advance refers to the fact that an online potential borrower can submit all needed information for the loan on a lender's website while zero other substantiating documents are needed. In past decades and clearly portrayed in old movies, a mother needing money for her children's shoes or a father needing to feed his family would walk down a back street or into a pool hall and there would be the neighborhood loan shark, ready to offer the desperate seeker whatever money they needed but at a very steep cost. Of course the story would unfold about the trials and perils the borrowers would have to go through to gather the money to pay the lender back, but often the interest rates had risen over night making the loan impossible to repay. Bones would be broken, children threatened and fathers would sometimes lose their lives over nonpayment of the lending agreements. Today bones aren't broken and fathers don't lose their lives over payday advances not being repaid, but the high interest loans are still with us.
With the convenience of the Internet and the anonymity of an online application, a customer can get a no fax payday advance in as little as few hours. In some cases, a borrower can request a pay day money forward lending agreement by nine pm. Eastern Time and have the money into the checking account by one minute after midnight. Many companies have the policy that any request after nine is deposited the second day after the request. So with these online quick loans, the borrower has convenience, anonymity, no credit check and no investigation about total debt to income ratios. All this ease and no financial x-rays can only spell one thing: a very costly fourteen day loan. "Greater love hath no man than this, that a man lay down his life for his friends." (John 15:13)
Whatever one wants to call it, a quick zero qualification loan or a pay day check advance or an online paycheck loan or a no fax payday advance, the lenders target those people who least can afford such a transaction. While seventy percent of Americans are estimated to live paycheck to paycheck which translates to no savings, a financial emergency most cruelly lands on those making a credible meager living. Slightly above poverty so that government assistance is not in the picture, a hospital co pay of one hundred dollars can be devastating to those with that income level. No family members with any money, no friends with resources and maybe attending a church with little resources, this demographic turns to the payday advance store down the street or goes to the library and applies for a no fax payday advance. Tremendous pride to always pay what is owed may drive these individuals to make bad, bad decisions to borrow very high priced money.
Borrowing one hundred dollars for fourteen days either online with a no fax payday advance or at a local lender will cost fifteen dollars in Ohio and twenty five in Pennsylvania. There is an additional fee of about five dollars for origination costs. The full amount for the loan including the interest and costs will come out either electronically if an online loan or with a personal check at the local store on the next payday. What if the person cannot pay it? Many states allow the borrower and the lender to renew it and try again at the next payday with more interest and costs. Many states allow an annual percentage rate (APR) of eleven hundred percent for a loan. So if a low income wage earner gets into more financial hot water and has to let that loan go unpaid even for a few weeks or a few months, what will the outcome be?
But the question still begs to be answered: where does this demographic go for help in times of emergency if the payday advancers aren't around? Especially if the borrowers are just above the line for government assistance. The reality is stark for those caught in the fly paper of a no fax payday advance that cannot be repaid right away. The very people who have the worst credit and highest debt ratios are those given the easiest credit at the highest prices. The payday cash advance companies wouldn't stay in business if there were a sky high percentage of loan defaults. So the borrowers do pay back the money in the majority of cases. But if on pay day the fourteen day loan repayment costs take away needed groceries and the next payday is another fourteen days away, has another family or individual just joined the millions of other people who are desperate to know when the rollercoaster is going to stop?
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