Q:

How do you get a payday loan with no faxing required?

A:

Quick Answer

Acquiring a payday loan does not normally require faxing. Instead, the borrower writes out a check for the amount of the loan plus the fee or authorizes the lender to withdraw the amount from his checking account, reports the Federal Trade Commission. The lender gives the borrower the loan in cash or deposits the loan in the borrower's checking account. On payday, the borrower cashes the check or withdraws the loan and fee from the borrower's checking account.

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Full Answer

A payday loan is an extremely expensive way to acquire credit, and the payday loan industry is rife with scams, warns the Federal Trade Commission. If the borrower is unable to pay back the loan within the specified time, typically a few weeks, the lender rolls the loan over for an additional fee. These fees can quickly add up to a considerable sum. Some unscrupulous payday lenders lie about how much the loans cost, and once they have the borrower's bank account information, they extract far more than the loan itself in fees. Borrowers should be wary about providing personal information to unverified payday loan sites/

As alternatives to payday loans, people in need of funds can take out a cash advance on a credit card or obtain a small loan from a credit union, advises the Federal Trade Commission. They can also contact their creditors and negotiate for better terms. People in debt should set savings goals, draw up a practical budget and avoid unnecessary purchases.

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