New mobile cash advance solution in Sweden – SMSlån 123

SMS loans are easier to apply and almost always approved, but are these the best? Do they have any drawbacks? According to financial experts, you should consider your financial security when applying for them.

What is a Payday loan?
Fundamentally, they are a form of cash advance which people take against their next paycheck. People are lending from third parties – not their banks – while others consider borrowing them from the online lenders. Individuals take them to cover their emergency expenses until their next payday has arrived. 

In a few situations, payday loans can be helpful. They can help you get through short term financial difficulties – provided that you will use them carefully. On the other hand, they can be pretty pricey due to the involved high-interest rates and fees. Moreover, the chances of your borrowing mistakes increasing are very high. Therefore, before you apply for your next SMS loan against your monthly payroll disbursement, consider the following pros and cons. 

The Pros:

  • Easier to apply 

The payday lending application process will take less than 30 minutes. Most borrowers, particularly those doing it online, will take less than 5 minutes. And even though the credit check may take time, the involved paperwork is light. 

  • Ready approval

As a matter of fact, most borrowers receive their money within 24 hours (after the application). But there are also borrowers who receive the money in less than an hour. 

  • Higher loan amounts

If you can repay the loan plus the accumulated interest on time, the amount will increase gradually on additional requests you may make. As a result, your financial security will increase.
 
With a reliable lender, you will easily and quickly get your bad financial situations under control. Therefore, SMS loans serve one purpose: instant cash. If your hot water tank has burst or your vehicle has broken down, it will help you solve the problem. 

The Cons:

  • Higher interest rates 

Never apply for one unless you are confident that you will be able to repay it on time. Some lenders charge over 500% annual interest rates on the unpaid SMS loans. According to SMSlån 123, a reputable comparison solution in Sweden, the average annual interest rate is around 400% over there. 

  • Higher fees

In addition to the higher interest rates, payday lenders charge penalties of around 15-100% on the loans not repaid on time. They also flip or roll over not repaid ones into new ones. On the new one, they will add a fee and calculate a new interest. This path can lead you to worse financial difficulties. 

  • Lender-powerful contracts

The involved contracts are more favorable to the lenders. After clicking the ‘Agree Box,’ people who fail to read the contract find themselves in the weak position after things have gone wrong. Always read the contract carefully. 

  • Bad collection practices 

Some lenders use unethical collection ways. They will call your employer, your family members and some may use threats of arrest. 

The bottom line
Before opting for a payday loan, consider the other alternatives. It may help you get through a financial difficulty but won’t provide a long-term solution.

SMS Loans for People with Bad Credit

321657Many people have more than just one credit and sometimes they don’t have enough money to go from one month to another. It’s hard for everyone, but what do you do when you need money right away? You can’t always ask your family or your friends because they’ll help you once, but they won’t do it all the time.

When this happens, you need to find the financial institution that can offer you a small loan that is enough to go from one month to another. When you already have bad credit, nobody will lend you any money, so it’s impossible to go to a bank.

That’s why there are the financial institutions that offer SMS loans easy enough.


Selecting a Loan

When you think about choosing an SMS loan for bad credit, you’ll need to do a thorough research and take an informed decision. It should be about the money that the company offers you and the quality of the loan – the conditions that you need to comply for getting the loan.


SMS Loan for Bad Credit

An SMS loan for people with bad credit is what you read – a sum of money that is given by financial institutions to those people that have a bad credit history and which can’t take another loan from a bank. The SMS loans need to be returned in less than a month, and they have a higher interest rate.


Taking the Loan

When you choose this type of loan, you need to make sure that you have the possibility to return the money in due time. You already have a bad history with credits, so if you know that you won’t be able to pay back in time, it would better if you don’t take the money at all.

You’ll need a customer-friendly company to get the loan, along with detailed information about how they operate. Apart from this, you also need to know the details of the loan – how much money you will have to give back in total, what penalties you will have to pay if you are late and so on.

You also need to understand that this is not like a bank – they won’t give you a loan for a long term, but just a small amount of money for a short period.


Paying the Loan

When you contract an SMS loan, you need to know from the start that you will have a short amount of time to give it back – about 30 days. You will need to set the details with the lender and know everything about how you can pay back – in cash or through a card.

The lender will have to give you all the details about the loan from the start – what is the interest rate, what happens if you don’t pay back in time, what solutions there might be and so on.


Bad Credit History

The financial inpayday-loans-300x219stitutions that offer SMS loan for those with a bad credit history know about the problems that people had with the payments. They won’t use the same scoring as a bank can use, but they will make a check and see if you will be able to pay them back the money that you’ve asked. They are interested if you have a salary or something else as regular income.
When you take this type of credit, you can start on improving your credit rating, even if the SMS loans don’t have the same affordable interest rate.

In the end, you need to do a thorough research before taking an SMS loan or any other type of loan, because you will still have to give back the money.