Early payday loans required the applicant to provide faxed copies of various documents that were used to verify the information on the loan application. Online verification processes have removed the need for lenders to require faxed information from the loan applicant. Anyone seeking online payday loans will begin the process by providing all of the requested information through the web form. A lender will respond to the applicant directly, usually through email, to continue in the process. The borrower must meet certain criteria to qualify for payday loans, including:
• Over 18 years of age
• Valid, government-issued picture ID
• Verifiable, steady employment
• Checking account in good standing
Online payday loans were created because the fax requirement was presenting challenges for the primary customer base. Most people who seek a fast solution to a money shortage are in an emergency situation. Removing the faxed document requirement solves obvious problems.
1. Fax machine availability – Payday loan applicants rarely have easy access to a fax machine at home or at work. Applications that do not contain a fax requirement are easier to complete for these individuals.
2. Cost of fax services – At the price of $1.50 to $2.00 per page, the cost of faxing the required documents is prohibitive for the person who needs emergency cash. Additional costs associated with the application will cause applicants to leave the process.
3. Control over personal documents – Personal information on faxed documents must be secured at all times. Lack of control over paycheck stubs and checking account information causes some applicants to find another source of fast cash.
4. Privacy concerns – A fax machine at work might be available, but the use of that machine requires an explanation. Payday loan applicants are dealing with a financial problem that does not belong in the workplace.
Payday loans offer fast cash for the person who has an emergency. Although other sources of cash should be sought first, there are times when other options are not available. Most emergencies happen when the rest of life is in a state of chaos. Access to an online payday loan that does not require faxed documents can offer peace of mind.
Borrowers must realize that the entire loan balance will be withdrawn from the checking account on the next payday. The entire debt will be repaid, and life can return to normal. Use of a payday loan should be rare because the fees and interest charges will add up quickly. Improvements to the cash flow will prevent future needs for an online payday loan. Repeated use of the payday loan option indicates significant need to increase the household income.