1-Hour Loans: Tips to Make Them Work for YouStephen M. Adams
Quick loan approvals have changed with the advent of widespread Internet access and loan industry competition. A relatively new industry segment has provided value to many borrowers - the 1-hour loan. Imagine seeing $500 in your checking account a mere 60 minutes after applying for a loan! If you find yourself in need of this ultra fast loan service, you would do well to acquaint yourself with details of the loan process. Because these loans are approved over a short time span, the amount involved is generally around $500 or less. To qualify for a 1-hour loan, you must provide some proof of employment such as a pay stub and proof of present income. There are minimum earnings standards, around $1000 a month. Job stability, at least three months, is required. Self- employment, and not going through bankruptcy, are important to note as well. No military personnel can apply for a 1- hour loan. Tip #1: Know beforehand what you will actually pay. There is normally a $10-$15 wire transfer fee up front and a $40 -$50 finance charge 1-2 weeks later. If you can't pay the initial loan off, another comparable charge will be added for the next 1-2 weeks. Tip #2: Understand you are promising to pay back the 1-hour loan from your next paycheck. Commit to do this without fail! Tip #3: Have your checking account routing and account number ready, as well as any credit card information the lender may require. Have a recent pay stub and be prepared to fax this to the lender. Prepare the following documents just in case they are needed: - Your Social Security Card - Your Driver License - a current utility bill - a recent bank statement - a personal check (voided) Tip #4: Be truthful to yourself about why you are taking out this loan. If you are in a poor cash flow situation, a 1- hour loan may offer temporary relief, only to further provoke the cash flow problem 1-2 weeks later. Tip #5: Appreciate the upside of 1-hour loans. These loans are quick, convenient, and of no credit consequence. A loan may be all you need to get over a short term problem such as a big car bill, a medical emergency, a driving ticket, a honeymoon dinner, or whatever. You will be informed by e-mail of acceptance of your loan request. You then log on to the loan provider web site, and formally initiate the loan itself. Lastly, understand the effective APR for a typical 1-hour loan is around 500% annually. You can decrease this APR by paying off the loan early. |
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