No Fax Payday Loans
While researching Internet fax services, I have seen several advertisements for “no fax payday loans”. What is a “no fax payday loan” and do I need one?
A no fax payday loan is a type of short-term, high interest rate, loans. The companies that offer them are the online versions of those quick-cash-until-your-next-paycheck services that you may have seen around your town. They provide a small loan — usually in the amount of $100 to $1000 — for a short period of time, usually up to 3 weeks (until your next paycheck, typically.) In exchange for their generosity, these companies pay themselves an exorbitant interest rate. You’ll end up paying 10 to 25% or even more for these short term loans. That rate is significantly higher than you’d end up paying a credit card company, even on a high interest credit card. It’s higher than anyone should pay for a loan of any amount. It’s my advice to stay as far away from these companies as you can.
The “no fax” part of the name, by the way, has to do with the fact that some of these companies don’t require paperwork. You don’t have to fax them a copy of your driver’s license or credit record, for instance. (After all, these companies want to make it as easy as possible for you to owe them money.) Many of them will direct deposit the loan into your checking account, then a couple of weeks later, automatically debit that amount plus their fee from your account. So it’s quite convenient, I guess, but it’s still an incredibly expensive way to borrow money.
Almost everyone runs a little short of cash from time to time, but there are better ways to deal with the problem. If you have ongoing credit issues, a variety of reputable non-profit organizations can help you learn how to get out of debt, and stay out of debt. Also, a wide variety of books and other resources address the issue. I am particularly fond of a syndicated radio host named Dave Ramsey. He can be heard on the radio across the U.S. and is also online at www.DaveRamsey.com. He teaches people how to get, and stay, out of debt so they won’t be at the mercy of credit card companies and short-term loan firms.
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