Texting has certainly made a lot of things in the world much more convenient. Heck, a lot of us vastly prefer a text message over a phone call in most circumstances, so it is not hard to see why folks have begun to search for more ways to speed up daily processes with SMS messages. Did you know that they have started to be used for loans, though?
Admittedly, it sounds a little strange. How do we use texting to borrow money, right? Well, as it turns out, this modern technology allows us to do so. Although it might seem a bit complicated at first, once you learn more about it, you will see that it is quite a subtle way to ease the process of borrowing money.
Just keep in mind that there will still be many of the normal components of applying for a loan. It is a lengthy process, after all, and it cannot necessarily always be condensed down into one or two steps. Still, by making it more convenient, we can save ourselves some time.
The question that we will be tackling today, though, is whether or not SMS loans really will save you time and effort. So, let us dive right in!
Loans: The “Normal” Process
Loans are something that pretty much always require some sort of background check and the like. That is because they are a contract between a lender and a borrower that involves a lot of trust and agreement on both ends. So, there is not a huge chance that you will be given one willy-nilly.
In fact, if you are approved for a loan with few required steps involved in the application, it may be time to question some things about the credit agreement in the first place. Just double-check the contract and the terms involved, because there are some lenders that are predatory in nature. A big example of that is loan sharking.
Thankfully, though, that is probably not going to be a huge issue for anyone looking for an SMS loan. So long as you are working with an accredited or trustworthy institution, it’s not something that you’ll need to stress over too much. When it comes to the “normal” process of applying for a loan, it tends to start with a trip to the bank or their website.
Depending on how you approach it, there will be a slightly different application form. However, whether it is virtual or on paper, the questions will be pretty much the same across the board. One of the most important aspects of it will be your credit score.
Addendum: Credit Scores and Why They Matter So Much
For many of us, the words “credit score” send a bit of a shiver down our spine. They are a part of adulthood that few people are a fan of, to put it lightly. Essentially, they are a three-digit number that gives financial institutions an idea of our credit history.
On the one hand, they are somewhat convenient for that reason. However, they also do not allow for much nuance or explanation – if you have a bad score, it is pretty much always going to be something that lowers your chances of approval for new loans. While there are still plenty of institutions that will be willing to work with borrowers with a lower credit rating, it can be hard to find them sometimes.
That is why so many of us dread the notion of these scores, even if our history is good. It is still rather nerve-wracking to submit your score on your application. Because it is influenced by things like whether or not your repayments and bills are paid on time, sometimes we just are stuck in a tough situation and cannot help it.
No matter what sort of credit agreement you are applying for, be it a loan, credit card, or something else, be prepared to share this information. Additionally, remember that a lot of the time, even the checks on your score can end up docking a few points off. Thankfully, that is a temporary thing, but it is still stressful.
How do SMS Loans Work, then?
Now that we have taken a look at how traditional loan applications work, we can compare them to the SMS ones. On some lender websites, they will have information about their toll-free text messaging number that will allow you to apply for a loan in that sort of quick and easy fashion. The first message will typically be an introduction and “main menu” of sorts, where you get to see some of the options within the automated system.
From there, you can start to work on the application. To get an idea of what it might look like, you can click here to go to forbrukslån.no/sms-lån and see some examples of how it works. It can change slightly depending on the institution, of course, but this will at least prepare you to some extent.
Most likely, you will still need to provide some personal details such as date of birth, age, and credit score. The latter will not always be required, but most institutions will want that if you are aiming to get a loan quickly. For many SMS programs, they say that they will give you a decision within a twenty-four-hour period.
Inevitably, there will sometimes be exceptions to this. Ideally, you will not experience them, but it is always a possibility. So, just bear in mind that the guarantee will be active one hundred percent of the time.
Does it Save Time?
With all of that background information, we can finally tackle the question of whether or not SMS loans are faster and more convenient. Admittedly, it is hard to say that they are not considering you can fill out all of the information required right on your phone. Still, though, you will need to have some documentation on hand.
No matter what type of credit agreement you are looking to apply for, there is going to be some “paperwork” to fill out. You can read about why that is on this page. When you are doing it through text messages, though, it is in a more condensed and digestible fashion. That is the main draw, here.
The other aspect that many borrowers find appealing is that in most circumstances, they will hear back about the decision within a day. In times of emergency when funds are needed quickly, that can be a total game changer. However, as was mentioned above, there will be some cases where this will not be possible.
Additionally, it does not always mean that the funds will be disbursed within that day. Rather, it just means that you will be approved or rejected in that period. So, be cognizant of that and try to plan accordingly.
Are Experts Concerned about the Easy Access to Loans?
To finish our discussion today, let us examine whether or not financial experts are worried about these sorts of systems. It is no secret that a lot of people are in debt across the entire world, and that certainly includes in Norway. One might question if it is wise to allow people to have such easy access to go into more debt.
The thing is, though, that this is not the intent of text or SMS loans. Rather, they are there to provide a more accessible experience for interacting with their financial institutions, whether they are applying for a loan or something else entirely. A lot of people do not enjoy making phone calls or traveling in person, or they may not have the time to do so anyhow.
So, in that sense, there is really not a whole lot to be worried about here. Although some level of personal responsibility is necessary to take on more debt in this fashion, banks and other lenders would not be giving out this money to borrowers that definitely cannot pay them back. That is why background information is asked for.
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