In fact nothing is farther from truth. To elaborate, let's first discuss the main reasons which can affect credit rating negatively. They are

1.Too many loans from a number of lenders

2.Exceeding the credit limit on your credit card

3.Defaulting on a loan

4.Writing bad checks.

5.Persistently late payments.

6.Too many credit cards with large balances

Except for third, fourth and fifth point, none applies to the quick online payday loans and since there is facility of deferral available with such loans, you can easily avoid the application of these points. Moreover there is no credit check performed while granting approval for payday loans by payday Loan companies.

Payday loans

Faxless payday loans are short term loans which are required to be paid back by the next payday. Thus the tenure of these loans is very short, lasting for just 2-3 weeks. The amount of loan is small and can range from ?500 to ?1500. The interest rate for this sort of loan is on the higher side but since the tenure is very small the actual interest figure does not amount to much.

Quick online payday loans, because they are so fast and hassle free, are very handy when there is some sudden expense and there is not enough money to cover it. In fact they are only help available to the people who have bad credit history and have maxed out on their credit cards. Here is how they can benefit you.

?No credit rating check is done by payday loan company, thus you can avail loan even if you have bad credit ratings.

?No need to leave the comforts of home or office - You can apply on the phone or even online.

?Fast processing ? within minutes your loan is approved and you would get the cash within 24 hrs in your a/c.

?These are no fax payday loans i.e. paperwork is almost nil.

?There are no upfront costs involved.

?It's discreet and secure because the information is not shared with anyone.

Comparison between faxless payday loan and personal loan

Time of approval

It takes anywhere between 3 days to 10 days for the approval in case of personal loan while payday advance is approved within minutes of applying.

Ease of processing

You would need to furnish whole lot of documents such as income proof, identity proof, residence proof etc. to apply for personal loan. In case of payday loans, no documentation is necessary. You can apply on phone or online from the comforts of your home or office. Not even faxing of documents is required for faxless payday loans.

Credit history

There is no way you can get personal loan if your credit history is not up to the mark. On the other hand, credit history is no criteria for approving payday loans. Thus for people with adverse credit rating, payday loan is the only option of borrowing money.

Tenure

The tenure of personal loan is longer (from 1 year to 3 or 4 years) while payday loans are very short term loans, lasting till about your next payday.

Interest rate

Annual interest rate charged by payday loan company for payday loans is on the higher side but since loan tenure is very short, actual interest paid does not amount to much.

Amount of loan

Amount granted is higher in case of personal loans.

Repayment

Personal loans are repaid through Equated Monthly Installments (EMIs) over the tenure of the loan. Once the agreement is in place, it becomes very difficult to alter repayment schedule. While in case of payday advance, repayment can be deferred by some weeks after paying a certain fees very easily.