Are 1 Hour Online Loans a Hoax?

1
Are 1 Hour Online Loans a Hoax? Online loans are
becoming the preferred choice in borrowing and
there is little doubt that this is a temporary
trend. The market is in a surge and the numbers
indicate a robust future to the service providers
and borrowers alike. The lenders benefit with
lowers costs of transactions and improved data
management while the borrowers benefit with
shorter turn-around-time, greater competition and
easier regulation given that what's online is
right out there for everyone to view including
the authorities. Yet, there is a lot of noise in
the market about the trending 1 hour online
loans. While useful as a concept, the vast
majority would know that a typical loan would not
take just an hour to credit with the current
rules, regulations and safety requirements. This
is one reason why some people find it to be a
less legitimate claim. Nonetheless, the lenders
continue to offer this as their fastest service
for loan disbursals and it can stand to have
valid merits for some borrowers. An example of a
lender with a fair reputation is CashAmericaToday
and here is the link for their 1 hour online
loan. The other reason is that being non-bank
direct lenders, some might have illegitimate
services altogether. This is when a hoax can get
really serious. But, we shall cover the ways in
which one can stay safe from illegitimate online
lenders and know for sure that the loan they're
looking at, is genuine. But first, we shall dig
deeper into understanding the one hour online
loans, to be able to know exactly how they work
and what the "one hour" claim really means. How
is it Different from a Pre-Approved Loan? We know
that some credit card holders get offers of
instant loans which are at times disbursed
immediately when applied for. Then there are some
lending apps that give instant money in very
short amounts. However, the loans being discussed
here in this article are different from these
preapproved loans which have already considered
what amount of a loan can be offered and are just
disbursing an already approved amount of loan to
the borrower. Having the choice to take a
pre-approved loan can be great but not everyone
shall have this option open to them and for those
whom this is an option, the limit of the amount
can vary drastically depending on their assessed
financial and credit health. However, the
non-bank direct lender loans are available to
almost all adult permanent residents and some
even serve people with poor credit history. How
long is it Actually Taking? Having done a study
and gained inputs from borrowers, it is safe to
say that direct lender loans that are labelled as
"1 hour loans" or so, are just fast versions of
their usual loans - mostly payday loans or other
such short term personal loan products. A deeper
look at the transparently written offers, tends
to reveal that a major part of their processes
are aimed to be completed within an hour. For
example, some lenders promise a decision within
one hour of application when the loan is applied
for during their business hours, while some
lenders promise credit within one hour of
approval of the loan. Logically, this seems like
a manageable task but any hurried process can be
subject to limitations and for a borrower, it's
good to be aware of them. While there has not
been enough study done to understand what the
actual average turn-aroundtime for such loans
truly is, what one can say after reading loads of
reviews and talking to past
2
borrowers is that few of the most reputable
direct lending companies manage to credit loan
amounts in 3-5 working hours from when the
application was submitted. Would a True One Hour
Loan be Riskier? Practically speaking, it takes
time to adequately assess the ability of a
borrower to repay any loan. An understanding of
credit health and financial health is essential
to gauge this. However, the market has grown to
accommodate compromises on this, for short and
very short term loans. Direct lending from
non-bank lenders has enabled this and millions of
people each year do depend on it. The typical
methods used for assessing credit and financial
health are also not flawless as such, but efforts
are continuously being made by several entities,
to make it as fool-proof as possible. That said,
non-bank direct lenders that offer the one hour
loans, are bound to avoid certain steps in order
to come close to fulfil their promises and keep
the borrowers happy. While many processes keep
getting faster as internet and computing power
increases, it is still not currently possible to
make such loans as safe as traditional loans,
which is why these loans are only available as
short to very short term loans. However, to
mitigate one's risk while taking a loan, it is
highly advisable to first be sure that failure of
repayment is highly unlikely. Failing to repay
any loan can come at a great expense and also
damage one's credit score. Online loans are
becoming the preferred choice in borrowing and
there is little doubt that this is a temporary
trend. The market is in a surge and the numbers
indicate a robust future to the service providers
and borrowers alike. The lenders benefit with
lowers costs of transactions and improved data
management while the borrowers benefit with
shorter turn-around-time, greater competition and
easier regulation given that what's online is
right out there for everyone to view including
the authorities. Yet, there is a lot of noise in
the market about the trending 1 hour online
loans. While useful as a concept, the vast
majority would know that a typical loan would not
take just an hour to credit with the current
rules, regulations and safety requirements. This
is one reason why some people find it to be a
less legitimate claim. Nonetheless, the lenders
continue to offer this as their fastest service
for loan disbursals and it can stand to have
valid merits for some borrowers. An example of a
lender with a fair reputation is CashAmericaToday
and here is the link for their 1 hour online
loan. The other reason is that being non-bank
direct lenders, some might have illegitimate
services altogether. This is when a hoax can get
really serious. But, we shall cover the ways in
which one can stay safe from illegitimate online
lenders and know for sure that the loan they're
looking at, is genuine. But first, we shall dig
deeper into understanding the one hour online
loans, to be able to know exactly how they work
and what the "one hour" claim really means. How
is it Different from a Pre-Approved Loan? We know
that some credit card holders get offers of
instant loans which are at times disbursed
immediately when applied for. Then there are some
lending apps that give instant money in very
short amounts. However, the loans being discussed
here in this article are different from these
preapproved loans which have already considered
what amount of a loan can be offered and are just
disbursing an already approved amount of loan to
the borrower.
3
Having the choice to take a pre-approved loan can
be great but not everyone shall have this option
open to them and for those whom this is an
option, the limit of the amount can vary
drastically depending on their assessed financial
and credit health. However, the non-bank direct
lender loans are available to almost all adult
permanent residents and some even serve people
with poor credit history. How long is it Actually
Taking? Having done a study and gained inputs
from borrowers, it is safe to say that direct
lender loans that are labelled as "1 hour loans"
or so, are just fast versions of their usual
loans - mostly payday loans or other such short
term personal loan products. A deeper look at the
transparently written offers, tends to reveal
that a major part of their processes are aimed to
be completed within an hour. For example, some
lenders promise a decision within one hour of
application when the loan is applied for during
their business hours, while some lenders promise
credit within one hour of approval of the
loan. Logically, this seems like a manageable
task but any hurried process can be subject to
limitations and for a borrower, it's good to be
aware of them. While there has not been enough
study done to understand what the actual average
turn-aroundtime for such loans truly is, what one
can say after reading loads of reviews and
talking to past borrowers is that few of the most
reputable direct lending companies manage to
credit loan amounts in 3-5 working hours from
when the application was submitted.
How to Ensure Your Online Loan is Genuine? The
state and federal government are always on the
lookout for financial malpractices. Yet some
caveats do exists and keep cropping up once in a
while. A great advantage of online lending is
that lenders have an online presence that can be
browsed through easily before making a decision.
Reviews and feedback from genuine customers and
speak for the legitimacy of online lenders. Apart
from that, it is advisable to scan through these
indicators of legitimate direct lenders
4
1. Contact Details and Address Direct lenders
that are registered and accredited would reveal
valid contact details on their website or in
their shops 2. Deposit/Payment Legitimate
loan lenders do not ask you to pay or deposit
money to get a loan or apply for one 3.
Registrations and Accreditations Look out for
security certifications on the website,
accreditations like BBB (Better Business Bureau)
and registration details of the lender to be sure
of their recognition as a legitimate lender. 4.
Suspicious Offers Some lenders or websites can
claim to make offers like first month free, etc.
Be informed that these are likely to be
misguiding or illegitimate offers/lenders 5.
Asking for irrelevant personal information or
passwords A direct lender shall need your bank
details, name, address, SSN, salary slips and
some other related information that seem relevant
to a loan. What they do not need is a prepaid
credit card number, account passwords, your bank
customer ID and other information that can
jeopardize your financial safety. Some scammers
do pose as direct lenders to gain access touch
information from people. Should you come across
an illegitimate loan lender, in the interest of
other borrowers and making the market safer, it
would be good to report it to the FTC (Federal
Trade Commission) Online Loan Matching Services
vs Online Direct Lenders Direct lender loans are
available online in two ways - from loan matching
services and from the direct lenders without any
third-party involvement. There are advantages and
disadvantages to both and understanding this can
impact safety and costs for a borrower. Generally,
it is advisable to use a loan matching service
only when you're unsure of finding a safe direct
lender while you know a safe online loan matching
service. The loan matching service is simply
going to connect you to one of their trusted
direct lenders and earn for that through a
commission. Keep in mind that, finding a
trustworthy matching service is going to be as
easy or difficult as it shall be to find a
trustworthy direct lender however the latter
being the lender, is likely to offer better deals
due to the lack of the need to pay out
commissions. Also, the transaction can be faster
when your entire deal is with the lender. Check
out CashAmericaToday if you're looking for an
online direct lender providing installment and
payday loans with instant approvals. That said,
the existence of loan matching services exist for
a good reason - they ensure competition that
always leads to customer benefit in many
ways. Conclusion Loans are becoming increasingly
easy to get and their approval is getting
progressively fast with the availability of great
computing power and better communication
technologies. However, if a loan is available too
easily and too quickly, it is likely that it is
less safe than other options. Doing homework to
know which lender is safe to deal with, is
important for a borrower and so is it to also
know that repaying would be convenient
enough. Provided you have well assessed that your
loan lender is legitimate and that the repayment
on time is feasible for you, taking such a loan
and understanding that the money reaching you
would in reality take a few hours or at times
even one whole business day post application, you
should be safe choosing to take such a loan.