Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP® Joel Ohman

UPDATED: Aug 3, 2021

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The original process of obtaining a payday loan involved going into a little storefront shop on the corner next to a liquor store and applying for the financing in person. Borrowers would have to return to the same store to make payments and extend their loan term if applicable.

Then, as technology improved, those stores began offering what was called fax payday loans. The problem with this type of money transfer is that the process was largely inefficient. Documents had to be faxed back and forth which required machines on both ends to be turned on, both phone lines to remain unoccupied, and borrowers had to keep their fingers crossed that all of the transmissions made it. Diligent borrowers might spend more time on the phone checking to make sure documents went through or checking if they don’t receive approval documents.

If there was in interruption in the line or if a document was forgotten, the dilemma could only be identified after a series of phone calls made between borrower and lender.

But technology continued, and now borrowers can obtain faxless payday loans.

What Are The Benefits of Faxless Payday Loans?

Faxless payday loans allow borrowers without a fax machine to obtain a payday loan from the comfort of their home. It expedites the cash advance and provides a much more efficient business relationship between lender and borrower.

However, the no fax method comes with a different set of obstacles to jump. Before, when storefront financing was the preferred (and only) method, borrowers only needed to write the lender a post dated check in exchange for a loan. No fax payday loans, on the other hand, are issued without the trading of any physical documentation. As a result, lenders now require borrowers to submit bank account information. If income or other documentation is required, borrowers can send pictures from their phones and other electronic documentation to be processed the same business day. The online application generally gets the information lenders need.

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Are Faxless Payday Loans Secure?

Going fully online and disclosing sensitive financial information like your bank account number can scare some away. In particular, older borrowers might still feel more comfortable with paper documents and applications. While your own computer should also be free of viruses, the sites used for faxless loans generally encrypt the data to keep it secure.

When loans are approved, the funds are sent via direct deposit. So it’s immediately available without a borrower ever going into the store. These loans are available for good or bad credit. Any credit report is run and authorizations are signed online. While it may seem counterintuitive in some ways, online payday loans create connections between borrowers in need and direct lenders.

Is A Payday Loan The Right Option for You?

If you’re looking for quick cash to cover a necessity, a payday loan may be a good option. It provides a quick application process and a limited amount of cash. These types of loans are based on credit score, income, etc., but they are much simpler to get.

The problem comes when people rely on them repeatedly or put off paying them off by making minimum payments only. If you take out a payday loan, it should be a quick loan meaning you should be able to pay off the entire amount within 30 days or less. Otherwise, interest rates are extremely prohibitive.

If you need emergency cash regularly, exploring financial planning options can help you stabilize your situation without the risks of the payday loan application process. For some people, this may involve personal loans with lower interest rates. 

Apply for a Loan

For more options, you can enter your ZIP code below to view lenders with cheap loan rates. Loan approval for online loans that meet your needs could be easier than you think.