1-Hour Payday Loans: The Fax Free Answer to Getting Cash - Fast

We can never be sure when an emergency situation will crop up. But what we can be sure of is that it will place considerable pressure on us when it does. This is especially true when the situation is financial. Getting your hands on the necessary cash quickly is often essential, which is why 1-hour payday loans are hailed as a life savior.

The reason why a payday loan, approved in 1 hour, should be so desperately needed can range from medical bills after an unexpected accident to the surprise arrival of a final notice on your mortgage.

Little surprise then that some lenders offer guaranteed faxless payday loans to applicants in this kind of position. There are several advantages to getting this type of loan, but also some disadvantages that should be kept in mind by an applicant.

Payday Loans Explained

As the name suggests, a payday loan refers to a loan given until the next payday. By extension, a 1-hour loan is a loan that is approved in just 1 hour, making it the fastest loan available. As a result, there is quite a high demand for them, despite some of the negative aspects of the transaction.

These loans are issued on the basis that it will be repaid when the next pay check is received by the borrower. The fact that is possible to get a loan approved in 1 hour is a huge positive, but approval can still only be secured if the borrower can prove that there is sufficient income to cover the loan repayment.

Once proof of income is received, it effectively means guaranteed faxless loans are there for the taking. There is little credence given to credit scores, since the loan is usually repaid in one go.

Advantages of a Payday Loan

Besides the obvious advantage of speed associated with a 1-hour loan, there are some others that suggest it is a wise move. In the case of a financial emergency, speed is the most important thing, but even when there is no emergency, these loans are highly valuable.

First of all, these loans are quite easy to get, since getting a loan approved in 1 hour suggests there is little chance of being rejected, as long as the basic criteria is met. Key criteria include proof of age (over 18), proof of citizenship (of US), proof of income and, lastly, bank details to an active account.

Because guaranteed faxless payday loans are small, ranging from just $100 to $1,500, it is a relatively easy task to repay them in full. This means that the credit score of the borrower will improve, thereby helping the borrower towards larger loans with better terms.

Disadvantages of a Payday Loan

Of course, there are some disadvantages associated with 1-hour loans too, not least the rate of interest that is charged. Thankfully, because the term of the loan is so short the amount of interest paid is low, but still, a loan of $1,000 may require repayment in full of $1,200 after 30 days.

Another disadvantage is that the loan needs to be repaid in full when the next paycheck arrives. While a loan approved in 1 hour is the solution those in need of emergency funds are after, the loan is designed to provide only what is already coming.

Clearly, guaranteed faxless payday loans have their drawbacks, but in the face of an emergency, they can be accepted. And just like every loan, shopping around online for the best deals can mean a 1-hour loan truly is the best and fastest answer to cash needs.

Should You Take Cash Advance From Banks or From A Payday Loan Company?

Payday loan companies have often been referred to as "mom-and-pop businesses". Frankly, this is not true. However the fact remains that, somehow this association has become deep rooted. After all, mom-and-pop businesses do not have the resources to offer loans to anybody. They are just intermediary websites that bring in leads to the lenders so that they can sell their loan plans. The businesses earn a commission for doing this. If you browse the Internet, you will find many of them now. Consumers often cannot make out the difference, and they end up paying much more than what they should.

Big mainstream companies have been staying out of the payday loan market because of the stigma attached to this. However, this is now changing fast. The mainstream lending companies have now decided that they cannot really afford to stay away from the growing $42 billion payday loan market. Mainstream companies including banks are losing customers to these payday companies for a while now, as they cannot disburse the cash so quickly. Customers who need quick money in an emergency naturally turn to these lenders, at the cost of the bigger mainstream players.

But this is all set to change now. Today banks have started offering cash advance loans. You can get a cash advance from your bank or from some other bank. It means that, you can get the money you need in as little as one hour once you have completed making your application. The application processing begins immediately. You don't have to meet anybody. No one has to know that you want a loan. There is no credit check. Just complete your application and the money will be there in your bank within a few hours or less. You will just need to be a citizen of the US, should be 18 years of age.

However we advice against taking a loan from a bank, as they are not flexible. They have stiffer terms than a normal payday loan lender. If you default they will immediately report to the major agencies, and not give you another chance.

Instead you can get a cash advance from a loan company that specializes in short term loans. You will be much better off. Your loan terms will be simple, there won't be any hassle and the lenders will give you enough time to payback the loan. If you have problems with payback you can contact the lender and ask for a rollover, however with banks you have no option but to payback the loan or declare personal bankruptcy. Which one would you choose?

Payday Loans: Facts and Fiction

A payday loan is a form of micro finance in which a financial institution lends money to their customer. The money is lent on short term conditions. It is meant for those people who find it hard to make both ends meets. This form of micro loan is exclusive for those who want to don some extra in life with little resources. While other things of life to worry about, it is very difficult to apply for a loan and go through a long process which is full of hassles and hurdles. The loan process is very tedious and complicated and so does the loan conditions. To make the matter worse additional hidden charges adds to the confusion of the clients. Whereas for pay day loan it is a matter of seconds. There is no queue, no long procedure for documentation, no interview and no requirement for credit history. As long as your are18 years old, has a job and holds a bank account you are eligible for payday loan. Mostly all financial institutions provide online loan facility, so if you meet the above criterion, you are just minutes away to money.

But there are also aspects of concerns associated with this form of loan. Since internet is not a much secured place, there is possibility that your information is being hacked and can be used for fraud purposes. There have been many scams related to this mode of micro loan. As there are no such hard and fast rules for verification, to get the loan, most of the applicants impose as somebody else with fake identification. There are cases of people who cheated these financial institutions with fake identification. Chances of frauds are also involved on the behalf of borrower. Many bogus financial institutions have cheated the people by charging them with processing fees and other charges. Another matter of concerns is the hidden charges and costs. Other things to be considered are the high interest rate because most of the financial institutions find this mode of micro finance very risky. It is always safe for both creditor and borrower to make a thorough research and go through all the details.

Payday loans are fast and convenient way to a hassle free and easy micro loan in heydays. If your are genuinely in situation where you desperately need some extra money then payday is a good option but it is advisable for you to be extra cautious for any fraud elements. In the end I would suggest that before making a decision keep in mind all the pros and corns of this mode of micro loan. Only avail this mode of loan when you desperately need the money.