Payday loans are probably the fastest loans available. A 1 hour payday loan, whether online or at a payday store, can be done in… you guessed it… 1 hour, as long as you meet the simple criteria. Pretty much anyone can qualify and the process is very easy, much easier than a secured personal loan or any other type of loan for that matter.
To qualify for a payday loan you:
- are a US citizen
- have a checking account
- are 18 years old
- have held the same job for the last 6 months
- have a regular paycheck of $1500 per month.
- have lived at the same place for the last 6 months
They are called payday loans because the usual technique is to hand over your endorsed paycheck after which the loaning company gives you the amount of your check minus their fees. The other common way of doing this is you hand over a check for the loan amount plus the interest to the lender. After the two week term is up the lender cashes your check. You best be sure the full amount is in your account or you will have to pay the penalty fees as well as an extra fee to have the loan out for another two week period. If this is done online you simply give the lender the routing number of your checking account and tell them how much you usually get in your paycheck.
The fees for these loans is quite high, $15 to $30 per hundred borrowed. Many lenders realize that borrowers are in a bad situation and are most likely vulnerable. Some will take advantage of this and add unnecessary fees. This is reason enough to do a search for more than one lender in order to find the best rate and terms possible.
All of the loaning process can be done online. The internet is full of payday lenders so it is easy to find several to compare and to get a feel for what the average interest rate is and what fees and terms are normal. Do not be fooled by a nice, professional looking website, look under the hood, read the fine print as this is where you will find those curve balls that could swing in to bap you in the face at the end of the term.
Wether you have an emergency or there is some other reason you need a 1 hour payday loan, be aware that the cost of speed is high.