Many people don’t really get it when you talk about a payday loan and let alone a faxless payday loan. Therefore in order to explain the purpose of a faxless payday loan we can begin by looking at what a payday loan is. A payday loan is basically a soft loan that is given in the form of credit to someone in need of cash and they can payback the amount after they receive their salaries. In other words a payday loan is as good as a cash advance. Thus payday loan lenders borrow you cash knowing that you will be able to pay it back as soon as you get income.
Faxless payday loans are no different either; the only difference is in the applying procedure.
A faxless payday loan is different from an ordinary payday loan as there is no need to send a fax when you are appling for it. So you won’t go through the trouble of having to scan your documents and sending them via fax. Now that you have understood what a faxless payday loan is, it is now time we understand its purpose.
A faxless payday loan has advantages for both the lender (creditor) and the borrower (debtor). We are now going to look at how a faxless payday loan is important for each party i.e. the creditor and the debtor.
The purpose of a faxless payday loan for the creditor
Faxless payday loans are unsecured loans that are given to persons facing financial difficulties and are in need of cash urgently. The creditor gives a payday loan borrower the money because he/she will gain as the borrower will return the money plus interest. Since faxless payday loans are unsecured loans they attract higher interest rates than ordinary loans, thus a faxless payday loan provider has a chance of making more profits through lending out money in the form of payday loans as opposed to ordinary loans.
The purpose of a faxless payday loan for the debtor
For the debtor or borrower a faxless payday loan gives so much relief when one is in need of cash particularly when faced with emergency cases. You may have a family member that has fallen ill suddenly and they are not insured and yet you have no cash and your payday is far off. Going to the bank to try and apply for a loan will definitely take long and at times the money may be approved way after you have already received your salary. On the other hand with a faxless payday loan you will not be required to provide a lot of documents for your loan to be processed and in actual fact it will be processed in minutes. Although faxless payday loans generally attract higher interest rates providers of such loans are not interested in a borrower’s credit rating. So it is possible to get a faxless payday loan even when you have a bad credit rating. Now how good is that for the borrower?