As described by its name, 1 hour payday loans are simply loans that you can obtain in just one hour. For collateral, you use your next paycheck. These loans are simple to get because they require no credit checks. You must simply have a regular job that comes with a regular paycheck. Typically, you can receive anywhere between $100 and $1000 depending on your income.
Because there are no credit checks, getting a payday loan is incredibly easy, especially with all the internet businesses that are ready to hand out these loans. The common application for a payday loan will take you less than five minutes and as long as all of your information is verified you should know the decision in just an hour. Unfortunately, the money usually will not arrive in your bank account until the next morning; however, you can rest easy knowing that the money will be there soon.
As a result of not requiring credit checks, 1 hour payday loans usually come with high fees and exorbitant interest rates. You can expect to pay a fee anywhere between $10 and $30 for each one hundred dollars that you obtain. You are typically required to pay the loan off in full with your very next paycheck. Some companies allow you to extend the loan period by paying just the interest, which can actually be quite expensive. Doing this is not at your advantage because borrowing only $100 can easily make you owe $300 back to the company if interest is allowed to accrue.
Because of the high fees and interest rates, these quick personal loans should only be used in emergencies and you should only borrow as much as you can pay off with your next paycheck. In addition, it is not suggested to keep using these services on a regular basis. If you are in need of a loan frequently, consider other types of funding sources.