How do Payday or SMS loans work?
Payday loan is successful because of the convenience it offers. Consumer can enjoy the benefits of payday or SMS loan sitting at their couch in their homes. It is usually processed in 24 hours. Payday or SMS loans may appear easy on the surface but it is know the functioning in and out.
How do they work?
Payday loans are often advertised as a quick source of money as the amount is credited as soon as the processing is completed and this doesn’t take more than 24 hours. Usually other loan process checks the credit checks and all other things that are in line with FCA regulation and that takes some time. There are a lot of payday and SMS loan providers out there and you should filter the bästa sms lån provider to apply.
What is the process?
This type of loan can be initiated just by sending an SMS. Following are the three ways in which lenders provide the loan via text message.
- PIN: The lenders usually expect you to apply online so the send a text including a PIN that is used for the security verification and this PIN is further used to complete the online application. This process is known as the text payday loan, the lender here connects the details to your phone number for authorization and verification of identity.
- Completion of the application by text: Once you are able to sign up for the loan then you can apply for the loan via text once you have filled the website-based form. Because on filling the online form the lender will have your personal details like contact information, income and expenditure. Depending on these variables the lender will process the loan.
- Subsequent text loans: If you have borrowed and successfully returned a text loan then you will be eligible for subsequent text loan. Here, you will be required to send one or two short messages. This option is not for first time borrowers.
Is it a good platform?
It is indeed a good platform but there are a few downsides to it as well.
- Inflexible repayment: Text loans ask for limited information and hence you cannot access online loan calculators or sliding bars to have a fine idea of the repayment terms. Most of the time the repayment schedule is automatically set and it is generally 30 days so such loans aren’t flexible.
- The broker spam: It is important to choose an authorized lender if you are applying for the loan via text else the loan brokers might use your phone number for spam. Don’t be surprised to receive a dozen of calls and messages of various loan providers offering their loans.
- Change in personal detail: If you have a change in your phone number that is used in the text loan or if there is a change in bank account details then such issues cannot be processed automatically once the loan is passed and the new number will not get linked. In such cases, you will need to notify the lender and they will contact you accordingly.
You will be subjected to the same type of regulations in a text loan as in other you would be in other types of loans. This means that this loan must be authorized by the Financial Conduct Authority. One must check before applying for a loan and also ensure if the lender is listed in the Financial Services Register.
Payday text loans are quick and convenient and have their own plus and down sides. One must verify a lender before applying for any such loan. Other than that, here in this article all the things that you need to know about a payday or SMS loan.