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What Are Faxless Payday Loans?

Faxless payday loans are one of the most popular ways to raise money quickly, especially for people who have poor credit. Why are they so popular? Mostly because they don’t require any sort of credit check whatsoever.

In 2015, the word “faxless” may sound especially strange, but believe it or not this form of lending remains quite popular in certain parts of the country. Technically, faxless payday loans come in two different forms:

  1. Online Faxless Payday Loans – Payday Loans processed entirely online
  2. Traditional Faxless Payday Loans – Payday Loans that don’t require any faxing, but do require you to visit the lender’s office to sign paperwork, etc.

The rest of this post details how faxless payday loans then, before explaining why you might want to think twice before taking one out.

How Do Faxless Payday Loans Work?

First, keep in mind that a faxless payday loan is a form of unsecured loan (meaning a loan that does not require the use of collateral). Because of that distinction, you don’t have to offer up anything of value to get a faxless payday loan (this is what makes them popular, but it’s also a major drawback – we’ll get to that in a bit).

Faxless payday loans got popular when fax machines were still a common presence in offices and home offices across the country, but that era is now long gone. Typically, everything can now be handled either over the phone, or via email, which makes the faxless payday loan a bit of a relic.

However, they’re still offered by quite a few lenders, and for certain portions of the population, this remains a pretty popular option when needing to borrow money quickly.

These loans are a form of short term lending that awards you a loan based on the value of your next paycheck.  Because they’re “faxless”, you’re able to apply for them and receive them without having to send or receive any faxes. You may, however, be required to do some scanning and emailing in order to get one of these loans.

Once you receive a faxless payday loan, you start racking up interest charges that will have to be repaid at the time of your next paycheck. The worst thing about any sort of payday loans is that they aren’t very convenient, because they don’t allow you to pay back your loan and fees in incremental installments (a little bit at a time).

If you aren’t able to raise the money to pay your loan back at the time you receive your next paycheck, then you’ll be in for a world of hurt, because you’ll accumulate penalties, additional interest charges and other fees that could dramatically increase your cost of borrowing money.

The reason that people continue to use payday lending (in general) and faxless payday loans specifically is because they’re often easy to acquire quickly and easily.

Requirements for Faxless Payday Loans

Virtually all faxless loans still require you to send paperwork back and forth (just like the faxed payday loan did), but now it’s all done online instead of via faxing.

Some of the typical bits of information that you’ll be required to provide to a faxless payday loan lender include:

  • Your Citizenship Status
  • Your Address
  • Your Age
  • Your Proof of Employment/Income (usually with paystubs)

You may be asked to provide other details as well, as each lender has different requirements.

One of the bright sides of payday lending is that you probably won’t have to face a credit check, so don’t worry about your previous financial history getting in the way of having your payday loan approved.

Pros of Faxless Payday Loans

There’s really only two pros to this form of lending:

  1. It’s fast – meaning that you can get the money within the same day that you request it. Many forms of traditional lending can’t operate that quickly, which is why payday loans became so valuable in the first place.
  2. It’s easy – meaning that you don’t need good credit or a huge income or a valuable piece of collateral to get approved for the loan. As long as you’re getting regular paychecks, you’re likely going to be able to borrow money (even if it’s not much money)

A third potential benefit would be that you can use the money you get from a payday lender to pay for anything you want, but many other forms of lending offer the same flexibility (other than mortgage loans, car loans and student loans).

If you’re in a huge hurry to raise some money for some emergency situation (like paying the t check before they kick you out of your apartment, or paying the utilities bill before they shut off your power and water), but you’ve got terrible credit, then faxless payday loans might be a good option for you.


Cons of Faxless Payday Loans

The downside to faxless payday loans is that they’re mostly bad news, because it’s one of the most expensive ways to raise money, no matter how much of a hurry you’re in!

Payday loans have acquired a pretty terrible reputation, and have even been banned in several states, because they charge some of the highest interest rates of any form of lending, and because they are notoriously difficult to pay back.

In fact, payday lenders virtually rely on their borrowers not being able to come up with the money that’s due at the end of their payday loan period (typically just two weeks from the time the loan was funded).

Failing to pay back your loan on time can lead to enormous repercussions, but mostly, it means that you’ll be paying far more than you originally thought you would to borrow that small amount of money you got.

Cons of faxless payday loans include:

  1. The Short Repayment Time – typically, you’ll only get a week and a half to two weeks (maximum) before you have to pay back your loan, plus interest and any other fees that you accumulated for the convenience of borrowing money. That’s not much time to get your finances in order and come up with the additional cash that will be required to get you out of debt.
  2. The High Interest Rate – traditionally, payday loans have been associated with some of the highest interest rates of any form of lending, whether offered online, offline, faxed or faxless. Most people who follow the financial sector and know about these things would tell you to make payday loans your absolute last line of resort, and would advise you to try to borrow money in any other way before going to a payday lender.
  3. The Limited Funding Options – usually, you can only borrow up to as much money as your next paycheck will be. For most of us, that means all you can get from a faxless payday loan is a few hundred to a couple thousand dollars. If you are facing some serious financial costs, that means these loans won’t be very useful for you.
  4. Excessive Penalties & Fees – unfortunately, payday loans have earned a terrible reputation for being notoriously difficult to get out of, and for good reason. Payday loans don’t just come with some of the highest interest rates of any form of borrowing, but they also often include origination fees for the convenience of being able to borrow money, as well as massive penalties for people who don’t get their entire debt paid back by the deadline. Payday lending has been so problematic for so many Americans that payday loans are outright outlawed in several states who consider them to be a form of “predatory lending”.

To tell you the truth, the only time you’d really want to even consider a payday loan is after you’ve already been told no by every form of lender and you’re facing an absolute immediate need for raising some money quickly.

In virtually every situation, there’s almost always a better way to get some cash than by visiting a payday lender (whether they’re operating in-person or entirely online).


A Better Option: Car Title Loans

Many people still remain unaware of the much safer, cheaper and better option for borrowing money in a hurry: car title loans.

Car title loans are also known as pink slip loans, vehicle title loans and auto equity loans. Car title loans are a form of secured loan, and an example of what we call “installment loans”, because they allow you to pay back your debt in small monthly increments (“installments”), rather than all at once.

Car title loans offer all of the same conveniences of Payday loans (they’re fast and easy to qualify for), without presenting any of the same problems:

  1. Car Title Loans have a much longer repayment period than payday loans. While payday loans only give you about two weeks to pay back your debt, car title loans are regularly stretched out over a period of several years.
  2. Car Title Loans tend to come with much lower interest rates than payday loans, especially considering how much longer you’re allowed to continue borrowing the money you got. Payday loans often charge interest rates several orders of magnitude higher than car title loans, all without allowing you time to come up with the cash needed to pay them back.
  3. Car Title Loans can be used to borrow significant sums of money – far more than payday loans – since they aren’t limited by the value of your next paycheck. Because a car title loan uses the equity of your vehicle as collateral for the loan, you’re able to borrow up to the value of your vehicle (depending on the lender), which could mean tens of thousands of dollars!
  4. Car Title Loans don’t come with excessive penalties and fees like payday loans, but they do come with one risk of their own: vehicle repossession. Keep in mind that you will still have to be a responsible borrower when you take out a car title loan, because defaulting on your loan could mean that you’ll have your car repossessed.

In the end, car title loans are simply safer, more affordable and a better way to borrow money than payday loans.

City Loan Long Beach Can Help

Getting the money you need to day is simple, just call City Loan. We have car title loans that offer some of the best interest rates and easiest requirements in the industry.

Why else do you think we’re widely regarded as the best lender for people with poor credit? We’ve been able to offer funds to people with terrible credit scores, including people with previous loan defaults, car repossessions and even bankruptcies on their record!

If you have credit problems, we may still be able to help! But better yet, unlike auto pawn shops, we won’t require you to leave your vehicle with us throughout the course of your loan, and we won’t even require you to leave it parked in your driveway!

That’s right – when you take out a car title loan from City Loan Long Beach, you get to use the equity in your vehicle to secure the loan, but you also get to continue driving and using your vehicle however you like. In fact, as long as you continue making your monthly payments to City Loan, we won’t place any restrictions on your use of or access to your car.

Find a City Loan Near You

City Loan offers the best car title loans in Texas,  South Carolina, Utah, Missouri, California,  New Mexico, and Arizona. Call any one of our representatives to find out how we can help you..

If you're in the Long Beach area and would like to speak someone, you can find us at: 

3431 Cherry Ave,
Long Beach, CA 90807

Stop by and speak to any of our helpful representatives to find out how you can get the best car title loans in Long Beach. Don't waste your time anywhere else. No other car title loan lender can provide you with the quality of service that City Loan offers. Don't take our word for it, stop by and say hello!

Our title loans offer all of the same conveniences and none of the same potential problems associated with faxless payday loans. If you’re looking to borrow money in a hurry, then your search is over, because you need to call City Loan today.

Even if you have a history of late payments, car repossessions, defaults, or even bankruptcies City Loan Long Beach Can Help can help.


How to Receive a Car Title Loan

You can get your title loan by visiting one of our convenient locations, but for added convenience, you can simply apply online or over the phone.

To start your streamlined, easy application and get the cash you want today, please call City Loan now at 888-238-9085.

Remember, even if you’ve already been told “No” by other lenders, we may still be able to help!