Payday Loans

Who Qualifies For A Payday Loan In 1 Hour? Is Bad Credit A Hindrance?

A payday loan in 1 hour is just any other type of cash advance program, where a small amount of money is lent to the borrowers for a very short period of time. The due date is usually the next pay day. The only feature that makes these types of loans extra special is that the loan application process here is extremely simple and most of the applications, where applicants meet the basic eligibility criteria, are approved within a matter of just an hour. But, it is very important for you to keep in mind that it may take one to two business days to get the money credited into your account. Lenders usually deposit a check of the loan amount in your bank, and then, it depends on your bank how much time it takes to collect that check. Besides that, there are several other things as well that you must take into your careful consideration if you are considering taking advantage of these instant loan programs.

Proof Of Verifiable Regular Monthly Income

There are certain basic eligibility criteria that you must fulfill in order to obtain a payday loan in 1 hour. For example, you must be able to provide sufficient documents as proof of verifiable regular monthly income. Your employment history and current status play a very crucial role in determining whether you qualify for this type of loan or not. Most payday loan companies will require your regular monthly income to be at least $1000. However, it is possible to find several other lenders as well that will allow you to qualify for a one hour cash advance program even if your monthly income is less than one thousand dollars. No matter how impressive your employment history has been, if you are currently not employed, it will be very difficult for you to get your loan application approved.

Post-Dated Check

When your application for a payday loan in 1 hour is approved, you are also very much likely to be asked to send the lender a post-dated check; the amount mentioned in this check must be equal to the money you have borrowed plus interest and other finance charges as applicable. Lenders will send this check for collection on the set due date, which is the date when you get your monthly salary deposited into your bank account. Though most lenders insist that you must have a checking bank account in your name, but there are several others who may still consider you as an eligible applicant even if you have just a saving bank account.

Authorization For Automatic Withdrawal?

Some lenders that offer payday loan in 1 hour may also provide you a seemingly more convenient option, where you are not asked to send any post-dated check; instead, you just have to authorize the lender to withdraw the agreed sum of money directly from your bank account on the scheduled due date.

What About The No-Verification Loan Programs?

The target customers for payday loan in 1 hour are those who desperately need instant cash to meet some urgent financial requirements. These types of consumers are highly motivated to accept any lending program that guarantees instant money to them. It is very important for you to keep in mind that there are many unscrupulous payday loan companies in the market that try to take undue advantage of your vulnerable financial situation. They make a highly lucrative offer to you that you just cannot resist, but while they do so, they also try to get access to your confidential private details. For example, you may come across a lender that promises loan approval within minutes just through a phone call. These types of lenders claim that they are ‘experts’ in the industry and that they do not care to verify the details provided by you as long as you ensure timely repayment. In order to ensure timely repayment, they may ask you to provide your credit card or bank account details so that they can withdraw the money directly from your bank account or by using your credit card on the scheduled due date. You are strongly recommended never to trust any such lenders; they are nothing but identity thieves whose only motive is to make money from you.

What If You Have Bad Credit?

Lenders that offer payday loan in 1 hour do not mind if you have bad credit. They never look into your credit report to determine your ability to repay the loan amount within the set time frame. The post-dated check you submit or the authorization letter you provide them to withdraw money from your account works as a security against the money they have lent to you.

Even Bankrupt Individuals Can Qualify

Even bankruptcy is not a problem as long as you are currently employed with a decent amount of monthly income and have a good employment history at least within the last six months. But, if you have switched your jobs too often, it might turn out to be a hindrance, as some lenders may reject your application.

Borrowing From Online Payday Loan Companies

The lending programs like payday loan in 1 hour are very popular over Internet. It is usually very difficult to find a local payday loan store with such offer. Therefore, you are advised to be very careful because the chances of scams and frauds are very high with online payday lending. First of all, it is very important for you to understand that even online lenders must abide by the payday loan laws applicable in your state. For example, if payday lending is banned in your state (such as, Georgia) and if an online lender is still offering you a loan, it clearly means that they are illegal lenders and you must stay away from them. Even if payday lending is legal in your state, it is very important for you to make sure that the lender follows the legal limits imposed in your state, such as about the maximum loan amount, maximum interest rate, maximum finance charges, minimum and maximum repayment period, maximum number of payday loans that can be issued to a single borrower at a time, the number of rollovers allowed, whether rollovers are permitted at all or not and the maximum collection charges.

Overall, though it is not very difficult to borrow a payday loan in 1 hour, it is not recommended. These loans are very costly, as they charge an extremely high rate of interest (several finance charges are additional). Most consumers end up getting trapped into a vicious cycle of debt because of the unfair practices that most payday lenders are involved in. That is the reason why consumers have been warned against it even by the FTC (Federal Trade Commission).


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Posted in Eligibility Criteria | 1 Comment »

One Response to “Who Qualifies For A Payday Loan In 1 Hour? Is Bad Credit A Hindrance?”

  1. robert says:

    Pay day loan in one hour seems to be the best way to get out from the financial problems. The person who is facing some instant need of money can easily attracts towards such type of advertisement present on Internet. Actually it is not true that you will get the money in your hand with in one hour. Lenders will deposit a cheque in your bank account which will be collected by your bank and it will take some time to get the money in your hand. You have to provide some documents which can verify your regular monthly income and your employment history. Your lender will demand post dated cheque of the amount you have taken plus interest and other charges included. Some lenders can even provide you a loan on behalf of your checking bank account number. If you take a loan through this procedure you will have to authorize your lender to withdraw the fixed amount of money fro your bank account on a certain due date. Generally, such type of pay day lending has been developed for the customers who need some instant money to fulfill their financial requirement. Always be very careful before signing a contract with such type of no verification loan programming lender.

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