Payday loans are experiencing a ban in many countries, and Australia is not an exception. The reason is people falling into debt trap miscalculating their repayment capacity. These loans were considered as high-risk loans as they were sanctioned even to bad creditors and number of NPA were on a continuous rise. Making the necessary changes in the online loans while continuing to meet the needs of the people with instant cash assistance, the lenders brought 1 hour into the market. Understanding the major difference between two will help to make an informed decision.
This is the significant difference you will see between 1 Hours Loans availed at onehourloans.com.au and payday loans. Unlike payday loans where you are obliged to repay the entire loan amount along with the interest rates with your next paycheck, 1-hour loans give you a flexible option to repay the flexible loan installments. You get to choose loan tenure between 90-365 days and principal loan amount along with the interest rates will divide into equal installments for an easy payout.
Credit History Requirements
Payday loans that existed in the market earlier have no consideration for poor credit while approving the loan. These less stringent regulations made it easy even for high-risk profiles to get the loan and eventually led to high rise in NPAs of the credit industry. 1 Hour Loans that are sanctioned now have due consideration for the credit score before approving the loan. The lenders have stringent regulations in place If they have to approve a loan for the people with poor credit.