Faxless Payday Loan Pitfalls

Posted by on Aug 3, 2006 in Pitfalls

Faxless Payday Loan Pitfalls

Faxless payday loans are convenient for people who do not have access to a fax machine.

This convenience comes at a price.

‘No fax’ cash advance loans tend to be slower, more indiscrete and may expose your personal information…

Cash advance lenders usually require you to fax information including:

  • latest pay stub (to verify employment)
  • identification (to verify identity)
  • banking information (to verify banking details and checking account history)

Faxless payday lenders must verify all this information by phone or other electronic means.

What does this mean for borrowers? It could mean:

  • longer wait times for approval/cash (everything has to be verified manually)
  • a phone call to your employer (discrete lenders will not say who is calling but not all lenders are discrete)
  • personal information risks (there is less chance of a privacy leak using a fax machine)

There are online databases that will verify employment but they are expensive and unreliable. It is cheaper and easier for payday lenders to call your employer if they don’t have a faxed pay stub from you.

If possible, try payday loan alternatives or seek offline (brick-and-mortar) lenders. If you must use an online lender, try to find one that uses fax to transfer information.

It is faster and safer to forgo faxless lenders and use the fax machines at Kinko’s.

If you use a faxless online lender, be sure to find one that:

  • uses encryption to transfer information
  • has a well-made, standards-compliant website
  • has a solid privacy policy
  • is an actual lender (not an affiliate or publisher)

To prevent information leaks on your end, always keep your own computer fully updated with the latest anti-virus/spyware definitions.

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