Payday Loans

How Much Interest Do Lenders Charge For Cash Advance In One Hour? Are There Additional Charges Also?

Many payday lenders these days are offering quick loan programs that allow you to get cash advance in one hour. Obviously, within such a short time, it is not possible for the lenders to verify all the details that you provide to them, but they still consider you as an eligible applicant as long as you have a bank account, especially a checking bank account. Since the money has to be transferred to your bank account, there is no need to verify whether you have provided correct banking information. If the information is not correct, the transfer will not take place at the first place, which means you will not get the cash. Lenders treat your bank account as a security, but still, they definitely are taking a lot of risk by not verifying other details. In order to cover that risk, lenders charge interest at an extremely high annual percentage rate. Besides that, an array of additional charges is also imposed on your loan account, such as in terms of approval fee, processing fee and others. In short, this is a very expensive loan option, which you can obtain within just an hour and which you must repay on your next payday, which is often just one to three weeks away. Therefore, you are strongly recommended to review its pros and cons thoroughly before you borrow these loans. Go for it only if you do not have access to better alternatives and only if you can afford timely repayment.

Annual Percentage Rate

Cash advance in one hour is a special payday loan that almost anybody with a bank account can qualify for. The annual percentage rate charges by these cash advances can range anywhere from 200% per annum to 750% per annum. For every $100 of loan that you borrow for a small period of 14 days, you must expect to pay back anywhere around $15 to $30 as interest. If you are borrowing for four weeks, you should simply double the amount of interest. It means a $600 of loan taken for four weeks will cost you somewhere around $180 to $360 just in the form of interest. But, this is not all; there are hefty amount of additional charges as well.

Additional Finance Charges

Almost every state where cash advance in one hour is legal (many states have banned it) allows lenders to charge several other fees as well in addition to the amount of interest. These additional charges can again range from around $15 to $30 for every $100 of loan issued for a period of two weeks. This way, in our example, the total cost of a $600 of loan will amount to somewhere around $360 to $720, which means you should pay back a total sum of around $960 to $1320. It is important to note that you have only two weeks to repay it. Failure to meet the deadline for the payments will result in hefty penalty charges as well as additional interest.

No wonder why even the FTC has termed these loans as predatory. A cash advance in one hour looks like a very easy financing option, but considering the extremely high cost involved with the same, it definitely does not make any financial sense to borrow it. You will end up getting your finances seriously damaged because of it. So, you are advised to look for better alternatives.

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