A one hour payday loan is a short term loan where you will receive the borrowed money within an hour. The nearly instant loan is usually paid off when you get your next paycheck. Because you need to apply, get approved, and receive the money quickly within an hour, most payday lenders and other short-term lenders don’t. However, some lenders manage to do this and there are two common ways to receive funds quickly:
- Debit card: Money from a lender can be sent directly to your debit card. Only certain cards such as Visa or MasterCard may be eligible. The process usually takes a few minutes.
- Cash: Some payday lenders allow you to get your money back quickly on the spot at the payday loan branch. There may be additional terms and conditions for receiving your fast cash loans rather than receiving your loan through ACH (automated clearing house).
Do One Hour Payday Loans Really Exist?
Yes, they exist. Many payday lenders who don’t offer one-time and quick funding options will tell you that are impossible. But due to technology and more user-friendly loans, one-hour payday loans do exist and are widely available. Although there are one-hour payday loans, there is no guarantee that your money will reach you within the hour. Heavy app traffic or a high number of loan applications, among other factors, can delay your loan by more than an hour.
What is a payday loan?
To understand payday loans, it helps to know what a payday loan is. A payday loan can also be called a payday advance, payday loan, cash advance, small dollar loan, or short-term loan. It is a small, short-term loan, usually repaid on the borrower’s next payday. Loan amounts can range from as little as $100 to $1,000. Usually a verification of employment or source of income is done as part of the underwriting process, but it can vary by lender. Lenders may also request other documents.
The borrower signs a loan agreement and writes a post-dated check to the lender for the full amount of the loan plus interest, fees, and other charges. On the loan’s due date, the borrower should return to the store to repay the loan in person. If the borrower does not repay the loan in person, the lender may refund the borrower’s post-dated check. If the account runs out of funds to cover the check, the borrower may now face an NSF check fee or NSF fee from their bank, plus the costs of the loan.
More recently, due to technology, borrowers can complete the entire loan application online. The funds are then transferred by direct deposit to the borrower’s account, and the loan repayment and/or finance charge is withdrawn electronically on the borrower’s next payday.
Will the lender check my credit score?
For many 1 hour payday loans as well as other payday loans, the lender will not consider your credit score. Possible does not use your FICO score to determine whether to lend you money. This is why many potential customers have FICO scores below 550, which may be considered bad credit to other lenders.
However, most payday lenders and other participating lenders will perform some type of credit check and request approval to perform a credit check, even if they do not use your credit score. If you are looking for loans that require no credit check, no credit check 1 Hour Payday Loans may be the best option for you.
Benefits of payday 1 hour loans
- Cash can be received within an hour and it’s one of the only short-term cash options. It’s perfect for emergencies or unexpected expenses (car repair) when you don’t have the cash to the moment.
- Many lenders do not require a high credit score and some do not have a full credit check. Therefore, even if you have bad credit or no credit history, you can be approved.
- There are a variety of different lenders and offers and you can get a loan from a payday loan store, online or even a mobile app like possible loan.
- Applications are generally straightforward and loan applications quick. Typically, you only need ID, proof of income, and an active bank account to borrow the money you need. Although the duration of the application process can vary depending on the lender, it generally ranges from a few minutes to 15 minutes. In contrast, online personal loans, mortgages, credit cards, and other types of debt can take much longer to apply for.