What is a faxless payday loan?

Faxless payday loans are made to remove all of the pain and paperwork that come with most payday loan applications by going completely virtual. Instead of wasting time trying to send documents, payday loans are designed to help those who need money fast before they get their next paycheque.

Why is it not a good idea to use a payday lender to get a loan?

Payday loans are bad because of the very high-interest rates and fees that cause borrowers to get stuck in a vicious cycle of financial problems. Many payday lenders are predatory and people have difficulty paying them off, getting stuck in an ongoing cycle of debt.

How do payday loans collect?

Payday loans are short-term cash loans based on the borrower’s personal check held for future deposit or on electronic access to the borrower’s bank account. Borrowers write a personal check for the amount borrowed plus the finance charge and receive cash.

How long does a payday loan stay in the system?

Payday loans do not work like regular loans. The records of traditional loans may be kept for 6-10 years. Payday lenders do not usually report to the credit bureaus, even in case of overdue repayments. But the payday loan may be filed once it is passed to the collectors after the lender sells the debts.

Can payday loans hurt your credit?

Probably not. Payday loans generally are not reported to the three major national credit reporting companies, so they are unlikely to impact your credit scores. Debts in collection could hurt your credit scores. Likewise, some payday lenders bring lawsuits to collect unpaid payday loans.

What happens if you get a payday loan and close your bank account?

If you close the checking account to keep the lender from taking what you owe, the lender might keep trying to cash the check or withdraw money from the account anyway. That could result in you owing your bank overdraft fees. The payday lender might send your loan to collections. Then there will be more fees and costs.

How do I know if I owe a payday loan?

Typically, the best way to discover outstanding loans would be to check your credit report as traditional loans are reported to credit bureaus such as Equifax, Experian, and TransUnion.