Payday Loans

How Much Does A 1 Hour Cash Advance Cost?

1 hour cash advance programs are no doubt very popular. Anybody with a decent employment record and with a bank account in his or her name can easily qualify for these types of loans. As per these programs, you can borrow a small amount of money, which is usually up to $1000 (but can go up to $1500 also in some cases) for a very short period of time. You are generally required to repay the amount thus borrowed within two to four weeks. The lenders that offer such cash payday loans do not check your credit score, which means even people with poor or bad credit score can easily take advantage of these quick lending solutions. Another lucrative feature of these types of payday loans is that the entire process of loan application and approval takes place in a paperless environment, which means the lenders will never ask you to fax or submit any document. In fact, many payday loan companies these days claim to offer no-verification loan; they simply issue a loan as long as the bank account of the borrower is active.

How Much Interest Is Charged On A 1 Hour Cash Advance Loan?

The amount of interest charged on a 1 hour cash advance loan varies depending upon the length of the repayment period and the actual amount of loan that has been issued to you. In general, lenders charge around $30 for every $100 of loan issued for a period of fourteen days. The rates vary from one lender to another and usually range from 150% to over 750% per annum. However, the maximum interest rates also depend on the state where you are a resident member of. For example, in the state of Michigan, the state laws have restricted the maximum interest rate on all types of payday loans to 390% per annum. If you are a resident of this state and are being charged a higher interest rate than the said limit, it simply means your lender is doing it illegally and you have the right to file official complaints or even lawsuits against them. However, it is very important for you to keep in mind that various additional fees are also charged on these loans. Therefore, you must read the loan contract papers thoroughly to get the correct picture about the actual cost of the loan.

Additional Finance Charges

The maximum limit regarding the additional finance charges also vary depending upon the state you belong to. For example, as per the payday loan in the state of Michigan, the rate of interest on any type of payday loan must not exceed 15% on the 1st $100 of loan, 14% on the 2nd $100, 13% on the 3rd $100, 12% on the 4th $100, and 11% on the 5th and 6th $100. This Way, in our example, if you are a resident of Michigan and are borrowing a $500 of 1 hour cash advance borrowed for 15 days, it will cost you $146.25 in addition to the principal amount.

Borrowing From Lenders Who Are Located Outside Your State

While you are hunting for the right payday lender, you will come across many payday loan companies who are located in other states and claim that the laws of your state do not apply to them because their offices are located in other states or because they are an online lender. You are strongly recommended to avoid such lending companies; always remember, a lender must abide by the payday loan laws of your state as long as they are issuing a payday cash advance to you (it does not matter which part of the world their offices are located at).

Some States Have Banned Payday Lending

Last, but not the least, it is also important for you to keep in mind that many states have banned payday lending while others have imposed a very low-rate cap on all types of loan. For example, the state of Georgia has explicitly banned all sorts of payday lending programs. On the other hand, Ohio has capped the maximum interest rate on any type of loan to 28% per annum.

Overall, if you are considering borrowing a 1 hour cash advance, you must first get yourself informed about the relevant laws applicable in your state. This way, it will be easy for you to choose a legitimate lender, while at the same time, you will also be able to decide whether you can practically afford these highly costly loans or not.

Custom Search

Tags: , ,
Posted in Eligibility Criteria | No Comments »

Leave a Reply

You must be logged in to post a comment.