- A Christmas no-fax instant payday loan provides fast cash. It is typically funded the same day the loan application is made or the following business day. Unlike other types of loans, the application requirements are minimal. You must be 18 or older and a U.S. citizen. You also must have a steady, verifiable monthly income that meets a minimum amount set by the lender. The lender may also require that you have held the same job for a certain amount of time, such as 6 months or more. However, you do not need to have a particular credit score or a co-signer, and you do not need to secure the loan with an asset, as you would with a loan from a pawn shop or a home equity loan. The no-fax aspect of this loan makes it a good option for those who do not have access to fax machines or do not want to pay the $1 to $2 per page fee commonly charged by copy shops to send faxes. It also removes a step from the loan process, making things faster and more convenient for customers, potentially widening the payday lender's prospective client base.
- Like any payday loan, a Christmas no-fax payday loan must be repaid by your next payday. If you cannot repay the loan by then, the lender will charge additional fees and interest, on top of the fees you initially agreed to for the loan, as a penalty for late repayment.
- Christmas no-fax instant payday loans are marketed during the winter holidays to appeal to people who are short on cash for gifts and the other expenses associated with the season. Like any payday loan, they have high fees. Lenders typically charge a dollar fee per $100 borrowed, which they refer to as a "service fee" to avoid state usury laws that dictate the maximum amount of interest a lender can legally charge. Because of the short length of payday loans and the high fees per $100 borrowed (such as $10 to $20 per $100), the annual percentage rate (APR) for a payday loans is generally in the hundreds. It would not be unusual to receive a payday loan with an APR of 200 percent, 300 percent or even 500 percent. Some payday loans even have APRs exceeding 1000 percent.
- To apply for this type of loan, you generally need to provide a fair amount of sensitive personal information, so you should consider the reputation of the company you are planning to do business with before handing over data like your Social Security number, driver's license number and checking account number. Along with this data, you will typically be asked to provide your address, phone number, date of birth, employer's name, employer's address, employer's phone number, your supervisor's name, the length of time you've been at the company and your monthly gross income. Also consider whether you have less expensive alternatives to get the money you need, if you can find a way to get by until your next payday without borrowing any money at all, and if you can scale back your holiday spending to avoid taking out a loan.
- A Christmas no-fax instant payday loan may seem like a good solution for a more cheerful holiday season, but this type of loan can quickly turn a short-term cash flow problem into a long-term one. Paying fees to a payday lender reduces the amount of money the borrower has to work with in his next paycheck. For people who are already in tight financial situations, taking out a loan that will make things even tighter is not advisable.
- Instead of paying fees to a payday lender, why not pay that money to yourself instead? Use the money to start an emergency fund so you can become your own fee-free, no-hassle payday lender. And save the money for real emergencies, like a health crisis or a car repair that's necessary to get to your job. While Christmas presents may seem like a necessity and a requirement, they're really optional, and you shouldn't put yourself in financial jeopardy to purchase them. Besides, the recipient of your gift would probably prefer that you take care of yourself first if you are having trouble meeting your financial obligations.
