SMS loan – Reply directly with the lowest interest rate
Sometimes you have to take out a loan. Maybe your income has been temporarily lower at the same time as the car does not want to start. A quick loan can then be a good solution for getting back on your feet. But before you decide to take out an SMS loan, consider the possibility of obtaining a regular private loan. By choosing a private loan instead, you can save thousands of dollars, now and in the future.
SMS loan – How to save money by choosing the right loan
Taking the first best sms loan can seem attractive when your financial situation is critical. But we advise you to stop by and read through all of our tips below before deciding.
We promise, it will pay off!
Here you will learn the difference between SMS loans and a more traditional private loan. You will also learn what the pros and cons of each type of loan are and how much money you can actually save with the right type of loan.
What is SMS loan?
For starters – what is SMS loan for something? The term SMS loan came about after the introduction of mobile phones in the Swedish market. In 2006, the loan form was established in Sweden and at that time, borrowers were able to take a quick quick loan of smaller amounts via their mobile subscription by sending a text message (SMS) to a lender, for example to Vivus. The loan was often paid out within a quarter to the borrower’s account. Refunds were made via their usual telephone bill or via separate avi.
Today, the market for SMS loans is more regulated and today the loan process is online through the lender’s website with the help of BankID.
At the beginning of the SMS loan, the features were:
- Small loans of $ 500 to 3000
- Quick payouts
- Short credit period where the loan is repaid within 30 to 90 days
- High interest rates
These characteristics are still largely true, but a clear difference is that the loan amounts offered in the form of SMS loans have become larger.
SMS loan with direct payment
If you are in need of an SMS loan with direct payment, you need to review which banks your lenders are working with.
After an approved credit check, the loan is usually paid off on the same day. However, in order for an SMS loan with direct payment to be completed, you need to submit your loan application within the lender’s opening hours. If your application arrives too late, the loan is usually paid out the next banking day. It is far from all lenders paying out on weekends.
However, if you have submitted your loan application on time, have been approved by the lender in a credit assessment and have the right bank, the money can be in your account within minutes to hours.
SMS loan direct payment Cream Bank
Although many lenders cooperate with several banks, it also happens that a lender only cooperates with a particular bank, for example only Cream Bank. If you, as a borrower, have your personal account with Cream Bank, you can in such cases expect to have your SMS loan paid directly to Cream Bank.
If you have another bank, however, the payment may take 1-2 business days.
SMS loan – money directly
When your household finances do not go together, it is easy to panic and think that you have to get money now and preferably yesterday. SMS loans, money directly – may be the first thing you think of in such situations.
But even in the worst of cases, there are things you can do to buy yourself time and organize your finances. So before you do anything rushed, read through the tips below.
Do you really need an SMS loan directly?
Taking an SMS loan directly costs unnecessarily much money. By just waiting a few days and following the tips below, you can save many hundreds of dollars.
Taking an SMS loan directly is associated with high costs and therefore it may be worthwhile to find other ways out. Here are 3 tips you can do before you decide:
- Consider the possibility of getting a private loan instead. With Astro Finance you can compare over 35 different banks and lenders and get significantly better loan terms. It is also free and fast!
- See if you can pay your bills a few days later. If you have handled your payments in the past, suppliers usually have no problem giving you another 30 days of credit. Just try to call the telephone operator, the municipality or the landlord and talk to them. You have absolutely nothing to lose! They have a greater understanding of your situation than you can believe!
- If both the bank account and the refrigerator gap completely empty, you can overlook the possibility of selling old things on social media or temporarily borrow a few hundred dollars from a good friend or family member.
SMS loan with note
Many ask themselves if you can take an SMS loan with a note. When in these cases you talk about a note, you mean a payment note. SMS loan with note is possible and you can read more about it below.
Sms loans with note of payment and debts
You who have a payment note may think that the only way out is just an SMS loan. But that is not the case!
Can I get a sms loan with a payment note?
All lenders have their own evaluation processes when it comes to sms with payment note. But something everyone has in common is that you take a credit report from UC to ensure that you who want to borrow money have the opportunity to repay the loan. If you are approved by the lender, you can take a credit note with a payment note and get money directly into the account.
Before You Try To Get An SMS Loan With Payment Note – Try Astro Finance Free! Instead of sms, Astro Finance can help you with a unsecured loan, even though you have up to ten payment notes. Astro Finance always tries to find a solution for you based on your circumstances. But the basic requirement for you to be able to borrow money with Astro Finance is that you have a monthly income of more than $ 10,000, are debt-free with the Lite Lender Bank since 6 months back and that you are over 18 years.
Furthermore, at Astro Finance, only one credit report is taken on you at UC. The more credit information registered on you in the last 12 months, the worse your credit rating. Something that can affect what interest rates and other loan terms you are offered.
Can I get an SMS loan with payment note and debt?
The process of obtaining SMS loans with payment note and debt looks very similar to the one we mentioned above. Lenders always want to make sure you can afford to repay on another loan. If you have several loans before, your credit rating will be adversely affected and as a result you may have worse loan terms. Therefore, collect your loans with us to improve your credit rating!
Sms loans without income
If you have recently been employed or are a student, no income is reported to you at the Swedish Tax Agency. At the Swedish Tax Agency it simply looks like you have no income. You can still get sms loans without income by submitting employment certificate or study certificate.
If you are granted a sms loan without income, you can expect higher interest rates than what is traditionally offered. This is because you as a customer pose a higher risk than customers who have income.
However, if you are outside the labor market and there is no income registered with you at the Swedish Tax Agency, SMS loans without income are all the more difficult. Rather, this is about getting a co-applicant for the loan in order for it to be granted.
With a co-applicant, you who are without income can also apply for a loan at Astro Finance free of charge.
SMS loan interest rate
To explain how you compare interest rates on SMS loans, we need to address the difference between nominal and effective interest rates. The nominal interest rate is the interest rate that you will pay for the loan according to the agreement you have with the lender.
All the fees and costs associated with the loan must be included in the effective interest rate. This can be a set-up fee and avi-costs. The effective interest rate for your loan is therefore a good way for you as a consumer to compare different loans with each other. If you want to calculate your effective interest rate, you can use our loan calculation.
According to the Consumer Credit Act, all lenders must state both nominal interest rate and effective interest rate.
Example: This example – to show SMS loan and interest rate, is taken from a real SMS lender. Let’s say you want to borrow $ 10,000 on August 30 to buy a new dishwasher and decide to repay the loan with three repayments in the following three months. The conditions the lender gives you for the loan are:
- Nominal interest rate: 39%
- Setup fee: $ 380
- Surcharge: $ 135 / pc
For an overview of how much to pay each month, see the table below:
|Debt before amortization||10 000 USD||10 000 USD||6 667 USD||3 334 USD|
|Amortization||0 USD||3 333 USD||3 333 USD||3 334USD|
|Interest||0 USD||325 USD||217 USD||108 USD|
|fees||380 USD||135 USD||135 USD||135 USD|
|To pay||380 USD||3 793 USD||3,685 USD||3 577 USD|
The total amount you then paid (including the loan amount) amounts to: $ 380 + 3793 + 3685 + 3577 = $ 11,435
In this case, the effective interest rate for the SMS loan amounts to approx. 135%.
At Astro Finance, we offer you private loans of up to $ 600,000 with effective interest rates from 3.01% to 22.59%.
Why your best SMS loan will not be cheaper than a private loan
Since an SMS loan is to be repaid in a very short time, you will never have the opportunity to get a better effective interest rate than you get through a private loan with a longer credit period.
Benefits of a private loan against an SMS loan:
- Avi fees are lower or can be avoided with the help of direct debit.
- Lower nominal interest rate.
- Lower effective interest rate.
- Lower monthly costs and the loan can be settled early.
If we were to compare the loan situation with the SMS loan above, partly against a private loan with a 12-month credit period and partly against a private loan that is settled prematurely after 3 months (Astro Finance v.2), we can see the following differences in the graph below:
Examples of loan terms for a private loan with the help of Astro Finance with straight amortization: Nominal interest rate: 8% Placement fee: $ 380 Aviation fee: $ 0 via direct debit Effective interest rate: approx. 17%
In the graph we can see that all three loans have a setup fee of $ 380, which is paid at the end of December.
In the red line you can then see the private loan that follows a 12-month installment plan. In January, $ 900 is paid for the loan, of which $ 833 is amortization and $ 67 is interest. The following months the monthly cost falls and in December the final payment is made of $ 839, of which $ 833 is amortization and $ 6 is interest.
In the orange line, it is the same private loan, but the borrower chooses to repay the loan faster than the installment plan. In January, $ 3,401 is paid, of which $ 3,334 is amortization and $ 67 is interest. The final payment is made in March with $ 3,357, of which $ 3,333 is amortization and $ 22 is interest.
Cost SMS loan against private loans
From the graph above, we can do the following compilation of the loans to compare them:
|Private loan with Astro Finance||Private loan with Astro Finance v2||SMS loan|
|loan Amount||10 000 USD||10 000 USD||10 000 USD|
|Nominal interest rate||8%||8%||39%|
|Effective interest rate||17%||17%||135%|
|Amount paid for the loan||10 813 USD||10 513 USD||11 435 USD|
You can quickly see in the table above that the SMS loan is the most expensive. The lowest total cost is achieved by paying off the mortgage more quickly (the orange column).
The lowest monthly cost is found in the red column with an average monthly payment of approx. 870 USD.
Private loans are therefore always a better option than an SMS loan, both when looking at the total cost of the loan and for monthly payment.
SMS loan weekend
But if we ignore the total cost of borrowing for a while, there are still other aspects that you as a borrower might see as an advantage. An example is a sms loan with a weekend payment.
A traditional loan is only paid out during banking days, ie weekdays with the exception of major holidays. For sms loans, on the other hand, there are several lenders that offer sms with payouts over the weekend.
During weekends, lenders usually do not have as good opening hours as during weekdays. Therefore, if you are looking for an SMS loan over the weekend, it is important that you look at the opening hours of your lender.
Take an SMS loan fast, or not?
We started this text with the fact that you can save thousands of patches both now and in the future. Something we hope we have managed to convey to you.
If you are looking for an SMS loan quickly, you have received several tips on how to save money by choosing the right loan. You have also been given tips on how you can have a dialogue with your suppliers if your ability to pay has at the moment become weak and thus buy you some extra time to review your personal finances.
You have seen the difference in interest rates with a quick SMS loan and a more traditional private loan. You have seen how much interest and fees affect the total amount you have to pay back and how you can affect the total amount by amortizing more than the original installment plan.
You have learned that several loans mean many credit information, which lowers your credit rating and can mean more expensive loans in the future.
Instead of SMS loans, make a budget over your personal finances and take a loan with the help of Astro Finance. Astro Finance’s service is free of charge and you can get over 35 loan offers with better terms. Get your finances organized today with a loan instead of several small ones!