If you're already searching for a no fax payday loan, there's a good chance you have bad credit. You might be wondering whether you'll be eligible for these, or whether they really don't do a credit check. The grass is always greener on the other side of the payday loan fence, however, so consider carefully before deciding automatically that you want a no fax payday loan.
A payday loan differs from a regular loan in as many ways as you can imagine! A regular loan is often for a thousand dollars to far more, and the interest rate is relatively low, but the term over which you repay the loan is also long. This is exactly the opposite of a payday loan, where you take out a little money ($100 to $1,000) for a short amount of time (seven to thirty days).
Another major difference is the application process between the two types of loans. Traditional loans can require anything from bank statements to references before you get approved, and typically take a long time until that happens. Payday loans have a very fast and easy application process, with a quick turnaround before you hear back from them.
Just as traditional loans differ from regular loans, regular payday loans aren't the same as no fax payday loans. Regular payday loans require you to undergo a credit check, and for the reduced risk the lender is taking on you, often you will find the interest rates or fees are reduced. On the other hand, no fax payday loans are very risky for lenders, so the interest rates and fees are usually higher.
If your credit record might not be that bad after all, consider applying to three or four different lenders and see if you can get approved for a traditional loan. At the same time, apply for the same number of no fax payday loans. Once you hear back from a number of different lenders, you can compare the interest rates, fees, and terms to see which is the best deal for you.
No fax payday loans may carry a higher interest rate, but they also provide an opportunity for people who never would have qualified for a payday loan otherwise to take one out. This is why some people refer to no fax payday loans as the "equalizer" of the payday loan world.
After weighing the pros and cons of both no fax payday loans and regular payday loans, you are in a better position to make an informed choice as to which is right for you! Read more...
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