1 Hour Cash Advance Loans – Are They Scams?

“Are these 1 Hour Cash Advance loans really just a scam” seems to be a common question that almost everybody I have talked with has asked me. The rather funny part is that their main reason for asking this was because often they knew that their credit was already so bad that it was almost impossible for them to believe that any legitimate company was going to loan them $1000 or even $1500 considering their past credit history.

The truth is that most of these 1 hour payday advance lenders are not a scam. These short-term personal lenders have been supervised and regulated by the Federal Government since 1955 and operate under strict guidelines set down for them by the FDIC. HOWEVER, that does not mean they all operate the same or that all of these lenders should be trusted.

One negative feature that all of the payday loan companies have in common is that they all have very expensive loans. That is why they don’t bother with a Credit Check as they already assume the applicant’s credit is not good or they wouldn’t be looking at a 1 hour cash advance but would be getting a loan from their local bank at a much lower interest rate.

Their fees for these loans can be so high as to violate usury laws in some states like Georgia. Therefore, it is a very good idea to get quotes from at least 2 different sources (3 is even better) to see exactly what their interest rate and fees are going to be as you will very often find a huge difference in fees charged by different lenders and even by the same lender at different times. It really mostly depends on how much they have in funds at the time and how eager they are to get those funds loaned out and making money for them and those are both situations that change from time to time.

Although not actually a scam, it is a sad fact that many of the payday lenders seem to have very poor customer service departments which can become quite a problem if you need help with your loan or to arrange for an extension on the payback of the borrowed money.

1 Hour Cash Advance Warning 

One Red Flag you should be alert for is being asked to pay any kind of an upfront or application fee. No legitimate payday loan company will ever ask you for an application fee any more than your local bank would if you were applying for a loan through them. Under the Federal Truth in Lending Act, the cost of payday loans must be disclosed. Among other information, you must receive, in writing:

• The “finance charge” (the actual dollar amount)
• The annual percentage rate (” APR”) (the cost of credit on a yearly basis)

and this information will be disclosed upfront by any legitimate payday lender.

Final Thoughts on 1 Hour Cash Advance Loans as Scams 

So no, 1 hour cash advance loans are usually not any kind of a scam but they are expensive and you could end up being really sorry if you don’t shop around first to be certain you are getting the very best deal possible concerning interest rates, full disclosure and repayment arrangements before you agree to accept any lender’s payday loan offer.