Traditional Payday Loans
Most payday loans are very quick and easy to take out. However, they are not usually set up to offer immediate cash loans – there is usually some processing time, especially if you take out the loan online. While this processing time is short (usually just 1 business day), if you need the cash in the next hour to two this option won’t work. You can find out if the bank offers same-day loans simply by checking the FAQs page on the company’s website. Some things that you will want to pay attention to include the following:
1. Do they ask you to fax them any information (checking account statement or copy of voided check)? If they do, then this may not be the quickest loan option and usually indicates that the loan will take one business day to process.
2. Cut off times. Most loans will need to be approved some time before 4:00 PM EST in order to have the money wired to your account that day. If you are going to the actual lender’s store, then the cutoff times will vary, but with online loans options then you will be up against banking hours.
1 Hour Payday Loans
While not all lenders offer 1 hour payday loans, those companies that do offer the quickest loans in the industry, with some even offering immediate cash loans. Most lenders who offer these loans will advertise this fact quite loudly, so they are easy to find. However, with 1 hour loans you may find a few different requirements. Even though they still offer quick loans bad credit, they may not allow you to borrow as much the first time. With traditional payday loans you may have the option to take out up to a 5000 loan. With the ultra quick loans, most lenders will allow you to borrow only around $700 to $800 your first time, and they will let you borrow up to $1500 once you have a proven track record with them.
The costs for the quickest payday loans are very similar to traditional ones. Average rates are around 470% APR. Obviously this rate is very high so you want to pay quick loans back as fast as possible – you do not want to be paying on such a loan longer than two weeks, and these loans are not designed to be paid back over longer periods of time. Generally speaking, you will need to pay off a payday loan in one or two weeks, in which time you will on average accrue costs of 25% of the principle amount of the loan (for example – if you take out a 1000 loan then you will end up paying 1250 for that quick 1000 dollars).