A sms loan is basically like any other loan. The loan has clear terms that show how much the loan costs and how long you have to pay back on the loan, yet sms do not have the best reputation. This is due to the high effective interest rate.
What many people forget, however, is that if you repay the loan on time, it will not cost you much at all. If you take a completely free sms loan in addition, you only pay back the amount you borrowed. In other words, sms don’t have to put you in the stick at all.
Therefore, it is easier to get a sms loan
One thing that distinguishes a sms loan from other loans is that it is a little easier to get (which it is also often seen as negative). The requirements for income are lower because the loan is small and sometimes you can take a sms loan despite having payment notes. Several hundred thousand Swedes have payment notes today, but many of these Swedes have arranged their finances and no longer have any problems repaying a smaller loan. This is why sms lenders can approve a loan despite payment remarks, which Smslånen.se thinks makes sense.
So why doesn’t everyone pay back on their sms loans? Unfortunately, so there are people who pull payment notes because they simply do not want to repay and there are people who borrow more than they can. Maybe you have borrowed for some unplanned purchase, which can be the case when the loan has to be repaid.
5 tips for taking sms loans
- Sit down and calculate before taking a sms loan. And don’t do any joy calculations! Look at how much you usually get rid of in a month and how much you usually get over. If you see that margins are getting too small, think about if there is something you can pull in for the near future, but always be realistic.
- Adjust the size of the sms loan according to the calculation, so you should not take a larger loan than the calculation allows. If the loan then becomes too small for your purpose, wait to borrow and save some money first.
- Look for a free sms loan. Yes, there are many free sms that have no interest or fees at all, but you need to be a new customer to get a free sms. Borrowing no more than what you can repay for then the bill can be very expensive.
- If you are just almost certain that you will be able to repay your loan on time and still take out a loan, then you should take out a loan that offers several extensions. But keep in mind that the loan can be very expensive if you extend it forever. Therefore, also avoid taking a sms loan with an extension if you are not sure that you can get enough money within the time you have planned.
- Once you have taken out a sms loan, you should put away money immediately after you receive your salary. For example, if you borrow USD 6,000 for 3 months, you should spend more than USD 2,000 a month, and this money you absolutely must not touch. If you think it will be too hard to do, you should borrow a smaller sum or not at all.