A Short Introduction to Text Loans
A text loan is a short term and high interest loan very alike the payday loan, with the exception being that it is issued when the borrower sends a text message to the lender using his or her mobile phone. Instant text loans are quick and easy to obtain, and can also be very beneficial in times of need, but they do come with their own set of caveats that the borrower must be aware of. As such, before you apply for a text loan, you should know as much as possible about them, from how they work, to their advantages and disadvantages.
How Text Loans Work?
Text loan enables the borrower to send a simple SMS message, using his PIN number as an identification, to the lender and get money deposited on his previously verified bank account. All of this is preceded, however, by applying on the lending company's website and providing your information (name, address, email, mobile phone number, bank account number, where you work and so on). Once the lender verifies the info, he sends the aforementioned PIN that you need to use whenever you apply for a text loan.
Typically, text loans can be used to obtain between 100 and 500 pounds, so they are best used for small, but urgent bills.
What are the advantages?
Obviously, text loans are best used for those unexpected expenses that affect us all. If you are having bad credit problems, these loans can be a very good option to turn to in times of financial need.
In addition, text loans are also very easy to apply for and it takes only an hour or so to have the money deposited on your bank account.
What are the disadvantages?
First of all, like any other bad credit loans, logbook loans included, text loans also come with high interest rates. So, be prepared to pay a larger sum than you originally borrowed. In fact, the APR% for these loans often goes above 1000%. To learn more about the APR differences with text loans, logbook loans, and other loans for bad credit, click here.
Also, don't forget that you don't have much time to pay this loan back, only a week or so.
When it comes to loans, and that includes fast text loans, you really need to know the upsides and downsides and weigh them carefully before you make a move.
Consider the Alternatives
Credit issuing institutions (such as credit unions) can provide short-term loans with a lower interest rate than that offered for text loans, but only if the applicant has a good credit rating.
Another option for the bank account holder is banking overdraft. This is basically an ability to withdraw more money than the account balance.
Last, but not least, if they are used responsibly, credit cards are also a very good way of getting short term credit.
Still, only a thorough analysis of the individual's financial situation can fully determine the best mode of borrowing money.
Does the prospect of getting a quick loan without much hassle sound good to you? If it is, text loans are only an SMS away with BSA Loans.