If you’re in a financial bind, you may look for a payday lender. But all the payday loans stores are in the bad areas of town, and that’s not anywhere you want to go.
Because of this, you try going online. You know that your credit isn’t good: maybe you were a victim of identity theft. Maybe you have a long list of medical bills after getting sick or injured. Or maybe you were irresponsible when you were younger, racking up debt with wanton zeal.
Online short term lenders are nothing new. They’re all over the Internet: you may have seen ads for them already. A lot of them seem a bit scammy, and you’re probably not sure if they’re legit or not. That’s why you have Elite Personal Finance to research the loan and determine whether or not it is a scam or legit.
One of the key features of online short term loans is high APRs. If you pay them off quickly, they don’t need to be a worry. However, payday loans on the Internet tend to be in small amounts (typically under $1,000) with APRs and finance charges that are sky high!
One Hour Loan is slightly different from all these other payday loans. They do have some small, high APR loans, but that’s not the only thing they offer. Their most notable offering is their installment loans, which allows you to pay lower interest rates AND spread out your payments so you’re not overextended in a single month!
Before we begin the review, let us be clear. One Hour Loan does NOT mean that you are guaranteed your money within an hour! It is simply a brand name, and not representative of the speed of service. It is possible that you may receive your money within an hour, but this is not typical.
Without further ado, we shall explain the features of One Hour Loan and their installment loans!
What Is an Installment Loan?
An installment loan is much like your car loan. When you take a loan out on a car, you go to the bank and you borrow a sum which is then used to purchase a car. This loan is amortized over a period of time, often 36 months. This means that you have to pay a set amount every month, and part of that money is used to pay interest, which is just the cost of borrowing the money in the first place. The collateral on that loan is your car, so the bank has the right to your car if you are unable to pay off your loan.
Installment loans work similarly. You borrow a certain amount of money and then pay it off in installments, which are simply payments toward the cost of the loan. It’s easy and does not require you to pay off the loan in full at a specified time, like short-term loans require.
However, installment loans are often without collateral. This means that if you cannot pay back your loan, the lender does not have direct claim on anything you have. This is risky for them, and is often why these loans are not commonly given to people with poor credit.
One Hour Loan offers installment loans, as well as short-term loans for those who do not qualify for the installment loans. Their installment loans have lower APRs because they are longer term.
How Does One Hour Loan Work?
One Hour Loan is simple. After going to their website, they put you through one of the quickest application processes seen in online payday loans. It’s in two stages: first, you fill out some simple information, such as your birth year, the last 4 digits of your SSN, your credit type, and then your income.
After this, you go through the main application, which requires the following information:
- How much do you need? Specify how much money you need so you are matched up with lenders that can provide you with the cash.
- Income Type: Tell them how you get your income: through employment, self-employment, Social Security, pension, or disability.
- Military: If you are in the military, you will be referred to a special lender which deals with lending to military personnel.
- Name and Address: They need to verify who you say you are and where you live.
- Time at Address: Let them know how long you’ve lived at your current residence.
- Are you a homeowner? If you own a home, you may qualify for home equity line of credit.
- E-mail and phone number: Let them know how they can contact you.
- Date of Birth, SSN, and Driver’s License No: This is to verify your identity and is kept confidential.
Then, you need to provide employment information such as:
- Name of Employer
- Address of Work
- Phone Number of Employer
- Length of Time Employed
- Pay Frequency and Last Pay Date
- Monthly Income
- How You Receive Your Income: Check or Direct Deposit
After that, give your bank information such as account number and routing number so they can directly deposit your cash. It’s easy and takes about five minutes!
You will then expect to be matched with a lender, who will offer you a loan. It’s up to you to read the terms of the loan you are given! If you do not read the terms, One Hour Loan cannot be held responsible for the effects of non-payment!
Is One Hour Loan Legit or a Scam?
One Hour Loan is not a lender, but instead a portal from which people like you apply and are referred to lenders that are in your area. They do not disperse loans. Their lenders are from a complex network that is generally shared amongst most online lending sites.
Their site is not a scam: they do refer you to real lenders. However, you need to make sure that you are not making yourself vulnerable. Here are a few tips to help you avoid the trouble that most people get into with short term loans:
- Read the terms of your loan carefully. You may think you are getting an installment loan, but you may simply be getting a short-term loan that is to be paid in full. The lender will give you the terms of your loan: read them carefully!
- Pay your bills on time (early if possible). You do not want to be caught unaware by some extra late charges that compound at a high interest rate. By paying your bills, you make sure that this does not happen to you.
- Be careful who you give your information to. Their site is secure from hackers, however you may be a victim of a keylogger attack. In this case, Identity Guard has software that can help you.