It’s clear that faxless payday loans are more convenient than storefront payday loans. You don’t need to drive to a storefront lender or wait in line.  Simply log onto your computer and find a faxless payday loan site.  Piece of cake.  But be careful! Convenience can come with a high price.  This article helps you balance the convenience with the potential high price.

With a storefront lender, at least you know who you are dealing with.  You can verify the State licensing of storefront lenders by simply looking at the State license that is typically posted in a prominent location in every legitimate payday loan store.  You can get a sense of how good a storefront lender is by checking out the quality of the store.  Is it clean?  Are the employees helpful and knowledgeable?  If you walked into a storefront lender that was set up in a tent or other temporary structure and the employees didn’t know what they were doing, you would walk out.

With Internet faxless payday loan companies, it is difficult to make these decisions.  How do you know which lenders are legitimate and which lenders are basically set up in a tent and who could pack up and leave you hanging with no customer service and no recourse if you have a problem?  Read this article to find out how.

Storefront payday lenders usually require the borrower to submit a photo ID, cancelled check and a copy of a payroll check to process a payday loan.  They also require that you personally sign a loan agreement.  All of these items are easy to provide (and easy for the lender to obtain) when you walk into a “brick and mortar” loan store.  How do Internet lenders process applications?  For example, how does an Internet lender verify your identity and payroll information?  How do you sign a loan agreement?  Advances in technology have made it possible for Internet lenders to verify your identity, confirm your payroll information, and sign a loan agreement.  All in a matter of seconds.

Payday lenders may seek information beyond that which is typically required to make a credit decision.  Beware of the lender that asks for an ATM PIN (personal identification number), license plate number, social security number, mother’s maiden name, height, weight or eye color.  Personal information of this type is not required, should not be given out and consumers should be concerned this information may be used for fraudulent purposes.  Some payday lenders declare all their loans are made by FDIC insured institutions but fail to disclose the name of the institution.  Also, keep in mind, many of these so called lenders are operating out of a foreign country.

Faxless payday loan applications are completed online in a few simple steps.    When you complete an online application, make sure you are dealing with a faxless payday lender that has been around for a while.  You want to make sure you are dealing with a company that has a history, and won’t shut down in a few weeks.

Faxless payday loan websites often act as brokers to find the best payday loans for you.  That is, they are not lenders themselves, but act to forward your faxless loan application to a bunch of lenders to find the best deal for you.  Most faxless payday loan sites follow the same simple application process:

   1. Complete and submit an online application or apply by phone, if offered.

   2. Receive the funds in your account – usually by the next business day.

   3. Repay your loan

A typical site discloses an annual percentage rate for a $100 payday loan with a $25 fee as 652%. Contracts from Internet payday lenders include a range of one-sided terms such as mandatory arbitration clauses, agreements that the borrower will not participate in class action lawsuits, agreements not to file bankruptcy for the life of the loan and the borrower will not close their checking/savings account until the loan and fees are paid in full.  Faxless payday loan sites that have a network of lenders or brokers may also ask the borrower to release the actual site from liability resulting from misconduct.

Finally, a borrower can be threatened with prosecution for bounced checks even though the lender knew at the time he wrote the check he had insufficient funds in his account.  That was the reason for the loan.  It is always the borrower’s responsibility to read the terms and conditions.  Better yet, print them out in the event you have a problem with the loan.  For great faxless payday loans and cash advances, we recommend using an established faxless payday loan broker.