Traditional bank loans take time to process and tend to have strict requirements. For any individual, but especially a person with less than perfect credit, 1 hour payday loans are a simple solution which caters to every borrower with few exceptions.
Application and Processing
Also known as short term loans, the application process at a payday lender, either online or in the store, is famously quick. A one hour loan usually refers to the quick processing and approval time and in some cases the speed with which the money is in the borrower’s account. Information the borrower submits include prove of United States citizenship, state issued identification card or driver’s license with proof of age, gainful employment of at least one month, and a valid and active bank account.
Short term lenders process applications within minutes, will not subject the individual to a credit check, and approve the majority of applicants. Some exceptions are people with negative bank activity history, or other activity which might show up on a ChexSystems report. Depending on the lending institution, a minimum amount of monthly income is required to obtain the maximum sum of cash.
Receiving and Paying
Most lenders cut a check on the spot or wire the money directly to the listed bank account. For wire transfers, the time is usually 24-48 hours after the applicant is approved, but could take less time. A few brick and mortar stores offer express service by completing the forms over the phone. The borrower comes in if approved, and will have their cash within a few minutes.
As these are payday loans, they are scheduled to be paid in full by the next paycheck. This is usually a maximum of fourteen days from the date of receiving it, and funds are automatically withdrawn from the account on this date. In order to stop the automatic withdrawal due to insufficient funds, the borrower needs to contact their lending store within two to four days prior, depending on the business.
When the money can not be paid back on the due date, it will be charged another fee and given a new deadline. If this date is not met it will be charged again. The process will continue until the maximum number of rollovers per state regulation is reached, or the lender gets their money from the bank account. Annual percentage rates are known to be as high as 391%, and the payday establishment has first right of offset; meaning they will be paid as soon as there are funds available.
Interest and Alternatives
Average interest rates vary among businesses, but it is not uncommon to pay in excess of 25% for a $100 dollar sum. Borrowers are liable for the borrowed funds, and will damage their credibility if they do not pay them back on time. Other than taking out 1 hour payday loans, a person can consider borrowing against their car, pawning an item for cash, or holding off for better terms at a traditional financial institution. Every option has advantages and disadvantages; the choice which carries the least leverage against the borrower is preferred.
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