A 1 hour payday loan is a short-term loan where you will receive the cash you borrowed within 1 hour. The almost instant loan is usually repaid when you get your next paycheck. Because you must apply, get approved, and receive the cash within an hour, most payday lenders and other short-term lenders do not do this. However, some lenders do pull this off and there are two common ways to receive funds quickly:
Yes, they do exist. Many payday lenders who do not offer 1 hour and fast funding options will tell you this is impossible. But due to technology and friendlier lending, 1 hour payday loans do exist and are widely available.
To understand 1 hour payday loans, it’s helpful to know what a payday loan is. A Payday loan can also be referred to as a payday advance, salary loan, cash advance, small dollar loan, or a short-term loan. It is a small, short-term unsecured loan, usually repaid at the borrower’s next payday. Loan amounts can range from as little as $100 to $1,000. Usually some verification of employment or source of income is done as part of the underwriting process but it can vary by the lender. Lenders may also request other documentation. These types of loans are regulated by both federal and state governments in the US and because the annual percentage rate (APR) of interest is high, certain states have unique restrictions or bans on payday loans.
In the traditional retail model of payday lending, borrowers visit a brick and mortar payday lending store and secure a small cash loan with payment due in full at the borrower’s next paycheck. The borrower signs a loan agreement and writes a postdated check to the lender in the full amount of the loan plus interest, fees, and any other charges. On the maturity date of the loan, the borrower is expected to return to the store to repay the loan in person. If the borrower does not repay the loan in person, the lender may redeem the borrower’s postdated check. If the account is short on funds to cover the check, the borrower may now face a bounced check fee or a non-sufficient funds (NSF) fee from their bank plus the costs of the loan. The payday loan itself may incur additional fees or an increased interest rate or both as a result of the failure to pay back the loan on the maturity date.
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 the finance charge / fee is electronically withdrawn on the borrower’s next payday.
Possible takes this two steps further with a friendlier alternative to traditional payday loans. Borrowers can apply, get approved, and receive money in minutes through an iOS or Android mobile. APRs are 2-3X lower than traditional payday loans, borrowers have multiple pay periods to repay the loan, and payments are reported to credit reporting bureaus, allowing borrowers to build credit history. Applicants with bad credit or no credit history can still get approved and repayments can be rescheduled in the app. Possible is a new and better way to borrow.
For many 1 hour payday loans as well as other payday loans, the lender will not take your credit score into account. Possible does not use your FICO score when determining whether to lend money to you. That’s why many Possible loan customers have FICO scores below 550. However, most payday lenders as well as other participating lenders will run some type of credit check and request approval to run a credit check, even if they don’t use your credit score. If you’re looking for loans that don’t require any credit checks, no credit check payday loans may be the best option for you.
The credit check they run is usually a soft inquiry or soft pull. A soft inquiry or pull happens in a number of situations which may include
Unlike hard inquiries, soft inquiries do not affect your credit score. However, they may or may not be found in your credit reports, depending on the credit bureau the lender used to run your soft inquiry.
Most payday lenders will require a borrower to have valid ID, an active bank account, and proof of income. Most lenders will request proof of income like a pay stub to determine whether you will repay the loan back. They usually won’t consider other sources of income such as cash-only jobs.
There may be additional requirements to receive the loan disbursements in cash on the spot. If the lender does not have a checking account on file to withdraw the money once the loan is due, the lender is taking on additional risk. To receive the loan disbursements on your debit card, you’ll need to have your debit card information and preferably your physical debit card. When the loan is due, funds can also be withdrawn directly from your debit card on file.
With a Possible loan, borrowers can receive money in minutes on their Visa debit card. You’ll need a valid ID, an active online bank account, and a mobile phone to apply for a Possible loan.
You can get a loan online, in person, or on your phone depending on the lender you choose to go with. We recommend to always get an offer from a direct lender – there are many online sites and services that will sell your data and will spam call or contact you. You can also check the NMLS Consumer Access to verify your lender.
Here are a variety of options for you:
These types of loans have both benefits and risks. Please do your own diligence and research before getting a 1 hour payday loan.
There are many situations where you need emergency cash fast. If a 1 hour payday loan is not the best option for you, here are some alternatives where you can get money fast as well:
Loan from Possible. You can get an installment loan from Possible in minutes. You can apply, get approved, and receive up to $500 on your debit card within minutes or in your bank account in 1-2 business days. You don’t need good credit to be approved and you can repay over multiple pay periods. Paying over time allows Possible to report to the credit bureaus, helping you build credit history.
Cash advance from payday apps. There are payday advance apps such as Earnin or Brigit that allow you to advance small amounts of money (usually $100 initially) before you get paid. However, you’ll need to allow location tracking on your mobile phone and the app will need to have proof of you going to work. That’s how the app determines whether they’ll advance your work paycheck early. Once your payday arrives, the app will get the money it advanced to you directly from your bank account.
Title loan. A car title loan is a secured loan that uses your car as the collateral. If you cannot repay your loan, the lender has the right to claim your car. These loans usually have high interest and fees and can be dangerous, especially if you need your car to get to work. Whereas payday loans are unsecured and has no supporting collateral, title loans use your car as collateral. Make sure you can repay your loan or you risk losing your car!
Pawnshop. Pawnbrokers offer secured loans that are backed by collateral, usually personal property. This can include jewelry and other valuable personal possessions. The items “pawned” or called “pledges” or “pawns.” If an item is pawned, within a contractual period of time the pawnshop may redeem it for the amount of the loan plus agreed-upon interest. The amount of time, and rate of interest, is governed by law and the shop’s policies. If the loan is not repaid within the time period, the pawned item will be offered for sale to other customers by the pawnbroker.
Advance from your employer. Some employers such as Walmart allow employees to get an advance on their paycheck through third party affiliate apps and services. Please research into the terms and specifics of an advance from your employer before getting it.
Borrow from your family. You may be able to borrow money from your family members or close friends. Although it can be embarrassing and is certainly not ideal, depending on your situation, it can be better than getting a payday loan, title loan, or other alternative.
Many lenders such as Possible can help extend the repayment date of your loan and give you a grace period if you are having trouble repaying your loan. Be proactive and contact your lender if you think you will have a late payment. Defaulting on your payday loan is also an option and in some situations, may be the right decision for you.
However, not paying back your loan can result in many consequences which may include:
However, there are many strategies and financial solutions to help you manage your situation. For example, Possible believes in trusting our customers and we integrate that trust through our fund recovery and collections process. We believe in doing the right thing for you, our customer, and making sure that even in the stickiest situations, we make the best of it to improve your long-term financial health.