If you find yourself strapped for cash, and it's a few days away from payday, you have an option. There are times when taking out a payday loan is a quick, easy, and even sensible solution to your problem. If you are in danger of bouncing a check, or if you need to make a payment on a bill that is due before payday, and the late fee incurred will put you at risk of damaging your credit rating, a 1-hour payday loan can help you. You can apply online, and have your much-needed cash in an hour or less. However, it is important to know exactly what this type of loan is, what the terms are, and what the financial risks are before you decided to take this financial route.

A 1-hour payday loan is a short-term, unsecured loan, usually granted for a smaller sum of money (less than $500) to individuals who can provide proof of employment and continual income. Taking out this type of loan for such a small amount of cash is easy, because there isn't the paperwork and approval process involved as with longer-term bank loans. Everything can be done online. When the loan is approved, the borrower promises to repay the loan from his or her next paycheck. The loan is made when the borrower gives the lender a debit authorization for the amount borrowed plus the finance charge. When payday comes, the lender deducts the full loan amount and finance charge from the borrower's checking account. It sounds easy, and with little consequence, but there are some things to be aware of.

Typically, if you are investigating the option of a 1-hour payday loan, you have very little cash flow to begin with, and few other alternatives. Know what you are getting into. The most important thing to be aware of is that there is a finance charge that is applied to the cash til payday loan upon borrowing. The fee is often as much as $50, depending on the amount of money borrowed. With a low fee payday loan, the charge is often quite a bit lower than traditional payday loans. Thanks to demand and technology, loans can be found on the Internet. The Internet has increased the opportunity for business to offer payday loans at highly competitive pricing. So, if whatever you are taking out the loan for has a consequence less than the applicable fee, you might want to reconsider. And if you are not able to repay the loan right away, be aware that the interest you are charged continues to accrue, thus increasing the payoff amount (there is no refund of applied interest if the loan is repaid early). If this is not an issue, and you are able to pay the loan back immediately upon receipt of your paycheck, then perhaps a low fee payday loan might be the solution for you.

Applying for a 1-hour payday loan online is a quick, sometimes instant, way to get the cash you need. Often, credit checks are not required as part of the application process. And the loan money can be directly deposited into your bank account. However, a 1-hour payday loan is only a quick solution to a short-term financial problem. Don't borrow money against your paycheck for impulse purchases, or just to have some cash in your pocket. Even if you choose a low fee loan, this type of loan can get very expensive very quickly, especially if it is not paid back promptly. And it is not wise to use 1-hour payday loans as a means of getting an extended credit source. If you have a bill that is due and do not want to risk hurting your credit rating, if you have an emergency medical bill that must be paid, or if you are in danger of bouncing a check, a low fee payday loan may work for you. If you are aware of the finance charges you will have to repay in addition to the loan amount, and you are able to repay the loan immediately, this type of loan can be a useful, one-time solution to a tight financial state.