Fax Versus Faxless

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Fax Versus Faxless

Should you use a payday loan that requires you to fax documents or should you opt for a fax-less or no-fax payday loan? There are advantages and disadvantages of both types of online payday loans. They only differ in the methods used in verifying the borrower’s employment and his bank account. But both types begin when a potential borrower fills out an online application form. This application is received by the lender and then the verifying process begins.

In regular online payday loans, the borrower is instructed to fax his driver’s license, payment stub or social security number, and sometimes a voided check. The main advantage of this type is that the borrower has maximum privacy and confidentiality. And if the borrower has all the required documents on hand, this type of online payday loan can be the quickest loan – a same day loan.

The main disadvantage of a fax payday loan is that not everyone has access to a fax machine. A borrower may need to find a fax machine to send copies of his documents. This entails time and additional expenses. And if the borrower does not have or cannot submit all the documents required, his loan application will surely be rejected.

The main advantage of a fax-less payday loan is that the borrower need not go hither and thither to find a fax machine. This machine is not exactly as common as the television. To verify the potential borrower’s employment, the lender makes a phone call to the employer. And to verify the existence of the bank statement, all the borrower needs to do is to phone and request his bank to fax his recent 30-day bank statement to the lender’s toll-free number. This won’t be any real hassle to the bank since banks have fax machines.

The main disadvantage of a fax-less payday loan is that it might be embarrassing for the borrower when the lender calls his employer. Confidentiality is slightly compromised. But, once the borrower has established an account with a lender, there will be no more phone calls made every time the borrower applies for a payday loan, except when payment is missed or the check issued by the borrower bounced due to NSF. Another disadvantage is that the bank may not immediately fax the bank statement. This can delay the loan process.

Sometimes, the lender is unable to verify the borrower’s employment using the phone. A representative from the payday loan company will contact the borrower and will inform him that he needs to fax some documents after all.

Whichever type of online payday loan you choose, both are relatively fast when compared to other types of loan or financing alternatives. The borrower will only evaluate his situation (does he want confidentiality? or is he lacking in documents?) to decide which online payday loan he will apply for.

Faxless Payday Loan