The trend of getting an online application for a payday cash advance is by far the most convenient, most cost-effective, and the most efficient way to borrow short-term funds for emergencies. However, due to the increasing incidents of fraudulent and predatory lending practices by some online lenders, many consumers are now hesitant, to submit their online applications for faxless online cash advances.
But for those who are desperate for a faxless online cash advance to meet their urgent cash needs, they still continue to submit their online applications. In fact, in a report of the Consumer Federation of America, many Americans are tempted by the promise of quick cash and pay an average of $520 a year in fees for short-term faxless online cash advances. Aside from that, a separate study conducted by Pew Charitable Trusts’ Safe Small-Dollar Loans Research Project, found that an estimated 12 million Americans who submit online applications for faxless online cash advance loans have an average of eight loans per year averaging $375 each. This is a tremendous increase despite the fact that the economy is having a financial crisis.
Usually, in the course of 2 weeks (when the instant cash loans become due), an average of $15 is charged by an online lender per $100 borrowed, with a calculated 391% annual percentage rate. Despite the expensive cost of a faxless online cash advance, many still patronize these lending institutions because they do not require a credit check or documents that need to be faxed to get the cash they need.
One of the most common problems associated with these short-term loans is indebtedness. In a survey, an average borrower of a faxless online cash advance loans takes out 8 loans in a year and is indebted for approximately 5 months after because they continue to renew the original loan. As a matter of fact, there are millions of Americans who have submitted their online applications to online lenders and been approved in minutes, but have struggled for months to repay their loans.
In view of this, it is important that any borrower who wishes to apply for a faxless online cash advance must be well-informed about what he will be facing upon the submission of his online application to an online lender. Basically, here are the basic steps to cost-effectively get a faxless online cash advance:
1. Selecting a Loan Product and an Online Lender
You need to provide some very basic information about yourself and the type of loan you seek. Most online lenders will ask you about your contact information and employment information, as well as a brief description of the type and amount of faxless online cash advance that you want.
2. The Borrowing Process
Once your online application for a faxless online cash advance is approved, you will be presented with an electronic agreement covering the details of the loan terms. You will also be called by an authorized representative from your online lender to verify the details on your online application in order to move forward with the process. So, make sure to review the terms of your loan before providing your consent via electronic signature or over the telephone, depending on how the provider reaches to you. The completion of the borrowing process comes with instruction on how you can withdraw the electronic transfer from your checking account. Usually, this will take one to three business days, depending on the online lender you deal with.
3. Repayment of the Cash Advance Loan
On the due date of your loan, make sure that your account has sufficient funds because the repayment will be automatically withdrawn from your bank account. Should you need additional time to repay, contact your online lender and inquire about a repayment option for an extension of the loan for another pay cycle. However, keep in mind that there will be for an additional charge. Make sure to avoid this option, as much as possible, to steer clear of falling into a cycle of debt.
To cost-effectively get a faxless online cash advance, research on your own to get the best rates and the best online lender.