Fax-Free Payday Loans - Secrets Lenders Don't Want You to Know

Online consumers love fax-free payday loans because they are fast and hassle-free. So, online lenders try to take advantage of this opportunity by promoting all online payday loans as fax-free. The question you need to ask before you apply is this: Are these loans ALWAYS 100% fax-free? The answer is an emphatic "no." Not always!

You see, online lenders are in business to make money, so they will be foolish to lend money to people they don't know or can't ascertain their ability to repay their loans. For a lender to approve this type of loan, it would have to find some way to establish your creditworthiness without asking for documents.

So, here are the fine prints you should know before you fill out an application for faxless payday loan.

All online lenders verify application information. If a lender does not require you to fax your paycheck stub or bank statement showing direct deposit of your pay, it must at least be able to verify the information you provided on your application. This verification process sometimes involves using teletrack and other national databases. If it is unable to verify your application information, it will most likely ask you to fax certain documents to establish your ability to pay back the loan.

Lenders may require good payment history. Some lenders would only approve this type of loan for returning customers. The reason for this policy is simple: They want to extend the privilege only to customers who have proven payment history with them.

Laws in your state of residence may not allow fax-free loans: Another factor that determines whether or not you can get this type of loan is the in the state where you live. In many states, lenders are required to have certain documents in their files before approving an advance loan request. For example, Colorado laws require payday lenders to obtain a paycheck stub from a borrower before approving a loan. This means that no state-licensed payday lender will offer 100% fax-free loans to residents of Colorado, no matter what they claim on their websites.

So, don't believe the hype. The phrase- 100% fax-free payday loan- does not always mean what it says. You can only get approved for this loan if the lender can adequately verify your application information; the laws in your state of residence allow it or you are a returning customer with good payment history. Otherwise, you will be required to fax one or two documents before your loan request can be approved.