Situations when you urgently need money, but you don't have it, are very undesirable. Still, they can happen even to those who carefully plan their expenses. These are usually unexpected expenses and emergencies that occur a few days or weeks before payday. These issues are already troublesome, and the lack of money just brings even more stress.
The most realistic option to get out of this trouble is to borrow the money. You can apply for many types of these financial arrangements suited to different borrowers' needs, which you can read about at this link.
But if you need to borrow just a few hundred to a few thousand dollars, you can opt for payday loans. Or, even better, their more practical version, SMS loans.
As their name suggests, these are loans for which you apply via SMS and receive feedback from the lender in the same way. If everything goes by plan, you'll receive a notification via SMS about the inflow of the requested amount to your account, and you can use it very quickly. Sounds good, right? Here's what you should know about these short-term arrangements.
Just like a payday loan, SMS or text loans are a form of short-term borrowing you can apply for when you need smaller amounts of money that you'll pay back from your first paycheck or soon after. Such arrangements are approved for sums up to several thousand dollars, and the term for their return is from two weeks to three months, depending on the lender and the borrowed amount.
Given that the amounts involved are small, most often no more than $1,000 or $2,000, lenders don't ask for any guarantee. Also, they don't charge interest but rather fixed costs. These fees can be quite steep, for example, up to $40 for every $100 borrowed. If we turn that into the interest rate, the APR for SMS loans would be a whopping 994%.
This information is of great importance because it'll give you a second thought before you run to borrow money. Sure, you only take a relatively small amount and can pay it back without problems, but you should never take this loan for granted. You really should apply only when necessary. But if you have a good reason to borrow money fast, go for it, as long as it doesn't cause additional problems.
If you urgently need some cash to bridge the period until payday, the first thing you'll do is find reputable lenders that offer short-term loans. Many of them give you the option of applying via text message, which makes this borrowing very convenient. Of course, this option will be available once you register with a specific lender and submit the necessary documents to verify your identity.
After that, the application procedure is simple. You have to send a text message to a specific phone number on the lender's website. The content of the message generally follows a certain form, which you will also find on the web page. Generally, to begin with, you need to state how much money you need. Soon, the lander responds with a message containing further instructions.
Moving on, you need to provide the requested information to the lender that will enable them to conduct a brief credit check and determine your creditworthiness. They will take a look at the current state of your finances to see if you can afford the loan. They don't pay too much attention to your credit score, which is why these financial arrangements have a high approval rate.
Shortly after sending this information, a return response from the lender arrives whether the money has been approved or not. If you're approved, the cash will be in your account soon. Lenders usually fund your account in a few hours, so you'll have the money at your disposal on the same day. That way, you can solve your financial issue very quickly.
SMS loans have become popular for several reasons. The first one is certainly a convenience because the application only requires a couple of text messages without any paperwork. That speeds up the entire procedure. Instead of days, everything can be done in just a few hours. Some lenders don't even run a credit check, especially if you already have a positive history with them.
Another great thing about these loans is that lenders usually don't consider your credit score. They do run some brief credit checks to ensure you're capable of borrowing and returning the money, meaning they pay more attention to your income and current finances. So, you can apply at you can visit forbrukslån.no/sms-lån/ and get approved even if your credit score isn't stellar.
The fact that these loans are short terms means you can repay them shortly and get rid of debt fast. If you do everything as agreed and make timely payments, that can benefit both your finances and your credit score. You can even set up an automatized payment, so you don’t forget about it.
And one more thing that borrowers appreciate about SMS loans is that they can use them any way they want. Lenders don't mind your reasons for borrowing money as long as you can repay it on time. And you always know how much you'll pay back since these loans are regulated by the law, so lenders can't charge you higher fees than stated.
Many people overlook the fact that all the fast services and emergency help usually come with a high price tag. That's also the case with SMS loans, which are handy but quite expensive. All that convenience and the possibility of solving the lack of money fast can cost you quite a bit. That's the main reason you shouldn't rely on this financial tool too often, but only when necessary.
Another potential disadvantage of these loans is the multitude of scammers operating on the market. If you don't thoroughly research the lenders, you can become a victim of fraud, and your personal data may be misused. Reputable lenders use encryption to protect your information and keep it private, while scammers can abuse your data. To avoid this common mistake, pick your lender carefully.
Before applying for SMS loans, it's good to weigh all pros and cons of these financial arrangements. They can be helpful if you use them occasionally and for a good reason, and of course if you pay them off regularly. That's the only way to enjoy their benefits and avoid an additional burden on your already strained finances.
