What Are 1hr Payday Loans?

Several situations can cause you to take out a payday loan. Some include shopping, vacation spending, small office purchases, etc. You can get them from conventional personal loans within three to four business days. 

However, you might need urgent payday loan offers with fast approval time, especially when it’s an emergency, like paying for surgery or meeting deadlines. 1hr payday loans might be the best fit in times like this. Hence, we’ll discuss them, how they work, and how you can get one. 

What this article covers:

What are Payday Loans?

A payday loan is an amount you can take against your future income. For instance, if your monthly income is $1,000, you can take out $300 and repay after collecting your paycheck. 

Generally, payday loans come in small amounts. Depending on the lender, the maximum borrowing amount might be $5,000 and the minimum at $100.

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Additionally, they’re short-term loans. Repayment duration can vary from two weeks to a few months. 

On the rough side, payday loans are notable for their high-interest rate. Rates here are fixed and charged per $100.

For example, a lender can offer $20 per $100. So, you pay $80 interest if you take out $400. You’ll likely be paying 300% to 500% APR at this rate. 

How Does a 1-hour Payday Loan Work?

1hr payday loans are quick payday loan offers with an approval time of approximately one hour. 

Although 1-hour payday loans exist, only a handful of lenders offer this type of loan on your first application. So, learning how they work can ensure you get one quickly. 

Generally, they are quick loans with less application hassle. In other words, you can apply for them without going through the stress of credit checks, providing a guarantor, or bringing a cosigner. 

Lenders offering these loans check your income from work and alternative sources to qualify you for a loan. 

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Here are a few requirements needed to qualify for a 1 hr payday loan:

  • Tax filing number 
  • Valid ID 
  • Checking account 
  • Income statements 
  • Bank statements 
  • Must be at least 18 years old
  • Must be an Australian citizen or permanent resident
    • Some lenders also accept New Zealand citizens and permanent residents
  • Valid contact number

Once you submit these during your application, verification can take a few minutes. Since there’s no pre-approval, you’ll get the loan almost immediately. 

However, your loan might not be approved if:

  • Your details don’t match across documents
  • Your income is lower than the lender’s benchmark
  • You’re not 18 years old or older
  • Your contact number can’t be verified
  • Copies of what you sent have blur details 

So, ensure you fix these things before applying to avoid delays during application.

However, applying for the first time can take longer since the lender needs to create a profile for you. But subsequently, it’ll take much less.

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What’s the Interest Rate on 1-hour Payday Loans?

Interests on small payday loans are capped at $15 to $30 per $100. So, you’ll be paying a 15% to 30% fixed rate per loan. 

Let’s take an example:

If we were to calculate how much interest you’ll pay on a $500 loan, we’ll multiply your loan amount by the interest rate. 

Mathematically, we’ll have: 15% x $500 = $75

Also, for 30% interest, we’ll have 30% x $500 = $150.

In other words, for a $500 payday loan, you can expect to pay between $75 to $150. 

To calculate the APR, you can use this:

[((Interest/Loan amount) x 365 days) ÷ 14 days] x 100. 

Scrap the formula. Here’s an example calculation:

Loan amount = $500

Interest on 15% = $75

Calculating:

75 ÷ 500 = 0.15 x 365 = 54.75 ÷ 14 = 3.91 x 100 = 391% 

So, at 15%, you’ll be paying over 391% APR on a $500 loan. And if you do the same calculation on 30%, you’ll be paying over 782% APR. 

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How Can I Get Payday Loans?

Below, we’ll outline four steps you can take to get payday loans in Australia. 

Research

To get these loans, you need to find reliable lenders offering them. You can do this by searching online using keywords like best instant payday lender near me. This will enable you to see the results of lenders with what you need. However, it doesn’t end there. 

The results can be overwhelming, so you have to take a step further in selecting the best. One way to do this is by checking reputable loan sites like Orange Loans. Also, you should check that the lender has an Australian credit licence. 

Compare Rates

Interest rates on payday loans are usually between 15% and 30%. While some lenders might offer rates on the high side (30%), you can find low-interest payday loans.

So, don’t settle for the nearest loan. Instead, list four to five options and compare their rates to get the lowest value.

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Register

We listed a few requirements before registering for a payday loan in the section above. Ensure you have them available to keep the process easygoing. 

To register, visit the lender’s official website. Ensure you’re not on a cloned website to avoid losing your financial details to criminals. 

On the site, choose a loan amount and duration. You’ll be redirected to a sign-in page where you can enter the required details. 

Apply 

Once you’ve filled in your details, you might have to submit extra information on your income and verify your mobile number. 

If everything’s good, your loan should be approved and sent electronically to your bank account within an hour. 

Advantages

Against all odds, payday loans have several benefits. We’ll highlight some below. 

Emergency Cash

Emergencies are unforeseen situations. But if they require fast cash to save the day, 1hr guaranteed payday loans can come through for you. Just ensure you provide the correct details and that you meet the requirements.

Easy-Breezy

With payday loans, you don’t get tired of filling out loads of applications or going through interviews. The application is as simple as filling out an online form. And you can do this while lying on your couch or working at your office. 

1-hour payday loans with fast approval

Any Day, Any Time

Most lenders now offer 24/7 payday loans. This means you can apply for a loan in the middle of the night and get it within an hour. However, this is subject to the lender’s policy. 

Disadvantages

No doubt, payday loans sound too good to be true. Yet, considering their downsides before applying is best. 

Predatory Loan Alert 

Short-term payday loans or small-dollar loans are seen as predatory loans. This is because they have high-interest rates that make it hard to repay before the due date, causing customers to return for an extension or more debt. 

Debt Cycle 

When customers keep returning to take on more debt, they gradually enter into a cycle of debt. The interest rate adds up and becomes harder to repay. 

Doesn’t Help Your Credit Score 

Taking out a payday loan has no impact on your credit score, even if everything goes well. This is because payday lenders don’t file loan transactions with the credit bureau. 

instant 1hr payday loans

So, it can’t improve your score, even if you repay on time, unlike conventional loans that do. Likewise, it doesn’t reduce your credit score as there’s no hard inquiry on your credit report during pre-qualification. 

However, there can be an effect on your score if you default on your loan payments. The lender can sell your debt to a collector who might sue you in court. And if the case is ruled in their favour, your score will take a hit. 

Conclusion

You can get 1hr payday loans online if you ever need emergency help. They’re easy to get and available around the clock. However, they have high-interest rates and can lead to endless debts. So, ensure you know how to calculate the rates and are ready to pay them before applying.

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