Understanding A 1 Payday Advance and Its Critics

A 1 payday advance is a short-term loan that provides quick access to cash, but it's not without controversy. Critics argue that these loans trap borrowers in a cycle of debt.

The loan's terms are often criticized, with some lenders charging interest rates as high as 390%. This can lead to a situation where the borrower owes more than the original loan amount.

Many borrowers rely on these loans to cover unexpected expenses, but the high interest rates can make it difficult to pay back the loan. In some cases, borrowers may end up taking out multiple loans to cover the interest on the original loan.

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A 1 payday advance can be a lifesaver when you're in a tight spot. You can apply online or in person at an ACE Cash Express store location.

To get started, you'll need to provide some basic information, such as your income and employment details. This will help the lender determine how much you can borrow and whether you're eligible for a loan.

You can borrow between $100 and $300, depending on your income and other factors. If approved, you'll receive your funds instantly, but funding times may vary based on your bank.

If you're not eligible for instant funding, your money will be direct deposited into your bank account by the next business day. You can also pick up cash same-day at an ACE Cash Express store.

Here are your options for receiving your funds:

Every loan at ACE comes with a 72-hour satisfaction guarantee. If you change your mind about your loan, you can return the principal within 72 hours after receiving funds and pay nothing more.

Some lenders offer virtual credit advances over mobile phone text messaging, similar to payday loans, but with a twist. These loans are available for customers who have their paychecks or other funds deposited electronically into their accounts.

A good example is Wells Fargo's "Direct Deposit Advance", which charges a whopping 120% APR. That's a steep price to pay for a short-term loan.

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TxtLoan, another company, offers a seven-day advance available for approved customers instantly over a text message, with a 10% fee. That's a relatively small fee compared to some other options.

Income tax refund anticipation loans are not technically payday loans, but they have similar credit and cost characteristics. They're repayable upon receipt of the borrower's income tax refund, not at his next payday.

Car title loans are secured by the borrower's car, but are available only to borrowers who hold clear title to a vehicle. The maximum amount of the loan is some fraction of the resale value of the car.

Here's a quick comparison of some loan options:

It's worth noting that some of these loan options may be available on slightly better terms than others, depending on the lender and the borrower's situation.

Criticism of 1 payday advance is valid due to its high interest rates, which can range from 390% to 780% APR, making it difficult for borrowers to pay back the loan.

Many people have fallen into debt traps with payday advance, leading to a vicious cycle of borrowing and repayment.

The short-term nature of payday advance loans can lead to borrowers taking out multiple loans, increasing their debt burden.

Borrowers may struggle to pay back the loan due to the high interest rates, leading to additional fees and penalties.

The lack of transparency in payday advance loans can make it difficult for borrowers to understand the true cost of the loan.

Borrowers may be unaware of the rollover fees associated with payday advance loans, which can further increase their debt burden.

The high interest rates and fees associated with payday advance loans can make it challenging for borrowers to pay back the loan, even if they have a steady income.

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Most payday loan borrowers in the United States are white, female, and between 25 to 44 years old.

A majority of borrowers use payday loans to cover ordinary living expenses over the course of months, not unexpected emergencies over the course of weeks.

The average borrower is indebted about five months of the year.

Black and Hispanic families, recent immigrants, and single parents are more likely to use payday loans, according to the U.S. Federal Deposit Insurance Corporation (FDIC) study from 2011.

A majority of Illinois payday loan borrowers earn $30,000 or less per year.

Refinances accounted for $2.01 billion in loan volume in 2012, compared with $1.08 billion in initial loan volume, according to Texas' Office of the Consumer Credit Commissioner.

41% of payday loan borrowers earn between $25,000 and $50,000, and 39% report incomes of $40,000 or more, according to a study by Gregory Elliehausen.

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You can receive your online loan funds in a way that suits you, with ACE offering instant debit card delivery, overnight bank account deposits, or cash pickup at their stores.

ACE compares their fees to the overdraft, late payment, and other fees you'd incur if you couldn't get credit, not to mainstream lenders' interest rates.

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Payday lenders often list alternative costs, like NSF/merchant fees for bounced checks or late fees for credit cards.

These alternatives have APRs that can be sky-high, like 1,409% for a $100 bounced check or 965% for a $100 credit card balance.

Here's a comparison of some of these alternatives: