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What Is A Text Loan?
Texting is a habit of many people and it has a proven convenience offered for a long time. Aside from allowing the user to communicate with a long distance friend, it’s become a platform that lets the have extra cash. A few years ago, acquiring a loan is only possible when you go out and visit a personal lender; nowadays, there are new platforms provided such as the online and text loans.
If you’re familiar with payday loans, you’ll lessen the confusion with text loans; it is a short-term, high-interest loan that can be acquired in a day or less. The only difference it has from a payday loan is how it is issued; rather than going to a lender’s office or visiting a website, borrowers can acquire the loan by using their mobile phone and sending a text message. Because of this, borrowers have found it more convenient and accessible. For those who are busy or not capable of going out, this platform is their way to deal with their sudden expenses and emergency bills. However, applicants should fully understand the loan as it may cause more strain on their finances if unplanned.
How It Works
A text loan is one of the newest forms of loan nowadays and you can find one on websites like Textaloan. It is available to borrowers who’ve been approved beforehand and has successfully settled the loan. They are provided with a personal identification number which they can use when sending a text message to a particular credit issuing union. Basically, since the applicant is a former borrower, all the requirements are fulfilled, thus, the money will be sent to the same bank account they’ve given in a matter of minutes. However, there will be times when the applicant will be rejected and in these cases, the lender may suggest a lower amount instead.
The prerequisites of text loan providers are less complicated than the regular ones. Most of the time, there is no credit check required, making it convenient to anyone suffering from a troubled credit history. Lenders can offer an amount ranging from £100 to £1000, depending on their qualification. However, because of the loan’s nature, it is payable on a short period of time. In addition, its convenience carries high-interest rates that borrowers need to watch out. Normally, its Annual Percentage Rate (APR) can go as high as 9994%.
Advantages And Disadvantages
For obvious reasons, text loans are advantageous in a number of ways. Firstly, it is beneficial to those who are not financially capable of settling urgent expenses. The loan money is available in less than an hour, thus, it can compensate the sudden bill immediately. It is also easy to acquire; in just a few click, you can get your money delivered straight to your bank account. But like other loans, it can be dangerous especially if the borrower ignores proper budgeting. The loan carries expensive rates that are hard to settle. As a result, the borrower may suffer from bigger financial trouble.