Online Payday Loans - Now Available with No Faxing25 December 2004
The current demand for payday loans across the United States is incredible. Tens of thousands of people apply for these unsecured short-term cash advances everyday. The popularity of this type of loan is due to the appeal of a cash advance of up to $500, sometimes more, with no credit check at all.
Although a great source of emergency cash if used carefully, the payday loan is often looked upon negatively. Problems arise when individuals borrow more than they can afford to pay back within two weeks. Although many lenders will allow a loan extension, it should be avoided due to the additional fees that will be added on to the loan principal.
While fees associated with these loans are relatively high (usually $10 - $30 per hundred borrowed), the circumstances under which the loan is offered should be considered. By lending cash to a borrower without requesting a credit check, the payday lender is taking a significant risk that the borrower will default on the loan or take an excessive amount of time to pay it back.
The fees are similar to the fees assessed by credit card companies when providing a cash advance, although payday loan fees are more due to the length of the loan. The justification for such high fees or rates is the convenience with which the cash loan is provided. If payday lenders actually charged the same percentage that credit card companies charge in terms of APR, then the fee for a two-week loan for $500 would be a little under $4. If this were the case, how many companies would actually loan $500 cash just to make $4?
One hurdle many internet payday companies face is their requirement for faxing copies of bank statements, paycheck stubs, and driver"s licenses to complete an application. The percentage of payday borrowers who have easy access to fax machines is low. Potential borrowers view a trip to the local store to use a fax machine as unnecessary and inconvenient.
By providing access to loans with no faxing, Payday Loans Connection helps borrowers overcome these hurdles. All of the lenders reviewed by Payday Loans Connection offer cash advances up to $500 with no credit check and no faxing.
About Payday Loans Connection
Payday Loans Connection is an online source for no faxing payday loan information. For more information, try our pay day loan homepage ( http://www.payday-loans-connection.com ).
Source: PR Web via Yahoo
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