Fax Bad Credit Payday Loans

A payday loan is simply a short term loan that person agrees to pay off on their next payday, hence the term payday loan. People with bad credit who have good jobs are able to get payday loans because they have a regular salary that will be used to pay off the loan.

Most people get payday loans from special shops and store fronts but there are companies that will give such loans via fax. The advantage to fax loans is that a person doesn’t need to go to a physical location to get the loan.

How a fax loan works

A fax loan works by having a person send the lender the documentation to get the loan via fax. The documents usually have to be faxed in because they require a signature. Many lenders will accept scanned documents sent in via e-mail in a fax loan application.

Most people who get a fax loan will locate an online lender, fill out the paperwork online and print it up. Then they will fax the loan paperwork into the loan company once they have signed it.

The loan company then makes a determination on the loan and sends the person the money. Many people like fax loans because they are quick and easy to get.

How a fax loan is paid

Most fax loans require a person to have a checking account because the money borrowed is deposited directly into a checking account electronically. This enables the borrower to get the money fast and cuts down on mailing costs.

The fax loan company will generally require a person to agree to have the money to pay off the payday loan in the bank account on a certain day. The loan company will then withdraw the money on that date.

It is generally impossible to get a fax loan unless a person is willing to provide the routing and account numbers for their checking account. Those who are worried about security might consider opening a second checking account just for the fax loans.

Interest and Terms

The interest charged on payday fax loans is usually high because the loan company is taking a risk by making such loans. The high interest is what enables the loan company to overlook a person’s bad credit record when making these loans.

The terms of such loans are usually fairly rigid a person has until next payday to pay them off or extend them. Such loans can be extended but the lender will probably charge a fee for the extension.

Payday loans

Fax payday loans can be a quick source of money for people with bad credit but the high interest rates and strict terms can be very costly.