- Myth Number 1 – Payday Loans in 1 Hour Do Not Require Any Type of Credit Check.
This is one of the most common myths when it comes to the quickest payday loans is that no check on your credit or history is done at all. While no normal credit check is done through any of the three credit bureaus (Experian, Equifax, and Transunion), there is a check that is done with either Teletrack or CL Verifty (and sometimes both). This check will not affect your credit, nor will it give them a credit score, so it is true that you can have very bad or no credit and still get the loan. However, the check is to verify that you are not currently going through a bankruptcy filing and that you are not defaulting on any other payday loans currently. You can have had bankruptcies is the past though. So while it is essentially true to claim things like “1 Hour Payday Loans No Credit Check”, remember there is a history check required.
- Myth Number 2 – It Is A Good Idea to Extend A 1 Hour Loan Payday.
This is a very important point to remember. Do not extend a payday loan if at all possible. It is much, much better to look at these loans as one and done loans – that is, you take them out once if you are in a short-term financial bind, and then you pay the loan off in the one – two weeks that you have before it comes due, and try not to have to take them out again. Most companies will allow extensions. In fact, many encourage you to get an extension because it is essentially like taking out an entire new loan. However, you don’t want to do this unless absolutely necessary because of the interest costs. Generally it costs 25% – 30% to take out a 2 week payday loan, so if you extend it another two weeks you will have to pay a total of between 50% and 60%. For example, if you took out a 3000 loan, then you could pay up to $1500 if you extended it only once.
- Myth Number 3 – Most Online Lenders Offer No Fax 1 Hour Payday Loans
On the contrary, most such lenders will actually require you to fax copies of your last 2 – 4 pay stubs in order to verify your application, then they will take one – two business days to process the loan. If you need the money within the hour or the same day, then you need to make sure that the lender offers that service. In addition, if you do not have access to a fax machine be sure to find a payday lender who does not require faxes.
- Myth Number 4 – Payday Loans Are Always Bad Loans
This is perhaps the most common myth when it comes to such loans. However, it overlooks a very simple fact: If you are looking for 1 hour payday loans no credit check due to credit problems, then you may not have another alternative. The real problem with these loans is not that people take them out once – it is that on average they take out between 8 and 12 payday loans or cash advances during the year. Because the fees are so high, if you get behind on these loans it will be very difficult to get out of the vicious cycle of extending the loans and/or taking out new loans to pay off the older ones. Before you take out your first one hour payday loan, be sure that: 1) you can pay it off in time, 2) you will use it only for short-term financing, and 3) that you understand the true costs associated with the loan.