Mobile phones have made our lives exceptionally convenient. Food, cabs, electronics, clothes, tickets, news, even television- everything we need in our lives, can be made available through our mobile phones. But isn’t money the most basic necessity nowadays? Why shouldn’t it be at our beck and call too? AND SO IT IS! In the form of text loans.
Crisis and trouble do not knock before they enter our lives. They are like those uninvited guests, whom we cannot send away, and must cater to properly till the time they leave. When you fall short of credit at the grocery store, or your late salary affects your rent payment and credit card bills, or loss of your job leaves you short of advances; for all your financial emergencies, text loans are your rescuer.
What are these text loans?
They are short-term loans of small amounts, which can be availed without following the hefty procedure of a loan. These can be availed using just your mobile phone, and are usually approved within an hour. These are emergency loans for the times you need money to clear off some necessary finances at hand.
What are the characteristics of these loans?
- The loan amount ranges from £100 to £2500.
- Emergency calls for convenient and speedy procedures, which is basically a synonym to text loans.
- The loan is offered for a few days to a few months duration.
- These are fully unsecured loans, and no security, pledge, charges or mortgage is demanded from you.
- The amount of the loan, if approved, is either credited to your bank account, or is provided to you in cash. It depends on the choice you opt for.
- Direct lenders and websites generally offer discounts and greater amounts to their old customers.
- Applying to a direct lender for the loan excludes the broker or the middleman, thus saving you the broker fees.
What is interesting about the Interest Rates?
As these are unsecured loans, the lenders generally charge a high rate of interest on them. The small amount of these loans reduces the risk of the lender, and the interest received is his return on the risk.
According to a law, the interest charged on text loans is simple, and not compounded. Also, your total interest and any penalty fees together, can never be more than the amount of your loan. Make sure that you remember this while signing up for a loan.
Who can apply for a text loan?
To apply for a text loan, the applicant must:
- Be a resident of the UK.
- Be 18 years or older.
- Not be bankrupt.
- Have some finances to show.
- Have a residential address, or a proper address history.
What is the process of application?
The 21st Century has indeed brought the world into our hands, in the form of cell phones. Applying for a text loan is as easy and simple as ordering a pizza.
The direct lenders have their own websites or mobile apps to help ease and quicken the process. These websites and apps usually are 24/7 services, running around the clock to assist and serve you.
You can apply via a website or an app, based on your convenience. You send a message via an app or site to the lender requesting for a text loan, and they send you an application form. The form requests your personal details, and information regarding the loan you are applying for. Filling in the form mostly takes 5 to 10 minutes.
After the submission of your form, it mostly takes 30 minutes to an hour to decide on the approval of your loan application. As soon as the approval comes, the money is credited to your bank account within minutes. In case you opted for cash payment, an executive is assigned to you to deliver the loan amount to you to your address. The same executive then collects the repayments from you from your address.
Wondering if your credit score matters while applying?
Credit score is always a crucial measure for deciding on any loan approval. A good credit score indeed increases your reliability as an applicant. A lender even offers lower interest rates to people with good credit score, than to a person with a bad credit score.
BUT, this does not imply that a bad credit score means rejection of your loan application. Many direct lenders offer loans even to people with bad credit score. Your current finances and job status might overcome your lack of credit history. As long as the lender is certain of the repayment of his money, your loan will be approved. After all, he is earning a big amount of interest while lending to you.
You should not worry much about your credit score before applying. Rejection at one place can turn into approval at another. You can apply to a different lender, and his policies can be different.
Exploring is beneficial for you
The lending market in the UK has been on the rise since some time now. An increase in the number of borrowers has directly led to an increase in the number of lenders. When you think about applying for a text loan, you would be surprised to see the number of options that are available for you. Take your time, and find the right one for you, which suits your requirements, offers a lower rate of interest, seems reliable and experienced, and does not ask for any hidden or additional charges from you. The right research will help you tremendously in the long run.
The world offers you multiple services to make your life easier. Getting right things at the right times is a boon to everyone’s life. These loans help you during your unexpected, tough financial times, and can increase your credit score if repaid timely. Take advantage of these services, and sail through to get stable again.