Needs arise between paydays requiring immediate cash in today’s world on a daily basis. The demands on our monetary lives can become overwhelming. A small automobile accident, academic expenses or everyday bills can put a strain on budgets already spread too thin. If you do not have savings to rely on, the situation may become urgent. Taking heed of the economic situation these days lending institutions have devised the one hour payday loan to help overcome these financial hardships. Lenders who offer these loans are willing to extend cash to financially strapped consumers for a short time with no collateral or credit check.

The reason they can do this is because you as the borrower assure the lender that your next paycheck will cover the amount of the loan. Payday loans are generally issued for smaller amounts ranging from $100 to $1500 and for a short period of time, usually no more than 14 days. These types of transactions are speedy and available to you in a matter of minutes when conducted online. The requirements for acceptance are minimal. 18 years of age or older, employment of at least 3-6 months with a minimum income of $1000 per month and an active bank account set up with direct deposit. In some cases having filed for bankruptcy in the past will affect your approval status. Once your information is verified the lender simply wire transfers the money to you directly to your account, at which time they become available to you.

Interest rates on payday loans are not cheap. Anywhere from 15 – 30% is generally charged by the lender. That means that at the high end of this scale for every $100 that you borrow you will have to repay $130. That is some serious interest but the lender needs to charge this amount to make his involvement worthwhile as they are generally only going to collect one payment from you. In effect you are writing the lender a post dated check for the amount of the loan plus interest and any fees.

Repayment of one hour payday loans on time is extremely important. Do not forget that you had money problems to begin with. Many people after repaying a payday loan find that they now have no cash to carry them through until the next pay period so they turn around and immediately apply for another one hour payday loan. This does nothing but begin a vicious cycle that many consumers can not recover from. Short term one hour payday loans are an excellent and many times the only option available to most but be responsible and judicious in their use. Plan ahead. Know exactly what your costs are going to be. Keep in mind that once your loan is paid off you still need enough money on hand to carry you through to the next pay period. One hour payday loans should only be used in true emergencies. Use them sparingly and they can be a real savior in times of need.