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When it comes to finances and loans, sometimes it can be difficult to sort them out as someone who’s busy and on the go. While our work lives may not be overly taxing here in Norway, that’s not to say that we’re not busy people. We have families to take care of and events to go to, after all.
All of this adds up to the fact that we really don’t have time to deal with a ton of paperwork and all of the other bits that are involved in applying for a loan. There are too many things going on in a day for us to want to worry about that stuff, right? While we can’t necessarily eliminate all of the time investment that comes with applying for loans, there are ways to lessen it.
SMS loans, or text message loans, are the keyway that we can achieve this. They save us a lot of time and energy because of the way that they’re designed to be a streamlined option for applicants and borrowers. If you’d like to learn more about them, then make sure to continue reading!
What are SMS Loans?
We’ll start off simply, with the basics of the premise. SMS loans function pretty much the same as any other type of loan, but the application process is vastly different. It’s made to take much less time for us as the consumer while still offering us all of the information that we need along the way.
With this style of credit agreement, we still have to fill out an application form. However, the biggest difference is that we submit the application through text message. Many banks and other financial institutions have started to implement this option so that they are more flexible for their borrowers.
Often, they will display a QR code that we can scan with our smartphones that can help us initiate the process. If not, there may be a link to follow or a number to text to start an application. Just keep in mind that you’ll have to provide the same information that you would otherwise – you can do it on the go, though, which is a nice thing to keep in mind.
The goal is to make credit agreements more accessible to a wide range of consumers. Of course, with that comes the fact that we have to understand how qualifying for these credit agreements works. Unfortunately, the “rules” of qualification aren’t any different even though this is an easier way to apply.
Qualifying for SMS Loans
As we mentioned above, there are many factors that will determine whether or not someone qualifies for a loan. This does go for SMS loans, which you can learn more about here: forbrukslån.no/sms-lån/-sms, if you’re curious to understand more about the process.
Much of it will likely hinge on your credit score. If you aren’t familiar with what those are, don’t worry – we’ll explain them briefly. Credit scores are simply a way that the major credit bureaus across the globe track the lending and borrowing habits of consumers and businesses alike.
The range is usually from four hundred and fifty to eight hundred and fifty, although it may depend on the bureau in question. If you aren’t familiar with your score, then it may be worth checking out before you submit any applications.
For those with a low score, don’t despair. While your approval odds may be lower than those with high scores, it doesn’t mean that it will be impossible to find a loan to qualify for. Just remember that you will likely end up with higher interest rates due to the bigger risk that creditors are taking by lending to you. That’s usually the tradeoff.What else might be taken into account when you apply for a loan? Your current finances will of course have a lot of influence on whether or not you are approved. This includes how much debt you have already accrued, what your paystubs are looking like right now, and what your current bills are.
Combined with your credit score, this will give lenders an idea of what your monthly budget is,and they will determine whether or not you can be trusted with another loan. You will still have to provide this information when you apply via text, though the format will be more streamlined.
Risks Involved
Now, we’ve talked up SMS loans a fair bit thus far, but keep in mind that like with any other type of credit agreement, there are risks involved. In fact, a lot of financial institutions who advertise these loans are trying to claim that you could get approved on the same day. This is a marketing move rather than a genuine promise.
Serious creditors prefer to do more in-depth checks on their borrowers before lending money. This keeps both you and them safe. Be wary of any promises that seem too good to be true, just like with any other loan. Unfortunately, SMS loans are infamous for falling into that pattern of promises made that can’t possibly be kept.
Another thing is that SMS loans often have extremely high interest rates. If you borrow 1000 NOK, you could end up having to pay triple that by the end of the agreement thanks to the interest rate offered. Always read any offers on loans in depth before signing a contract.
The final thing that we’d like to highlight here is that if there is a lender who is claiming they’ll approve you for a loan without checking your credit score, there is probably something fishy going on. Here in Norway, these checks are required before any money is disbursed. Treat any claims like that with extreme caution.
Although SMS loans can be convenient, don’t forget that there are a lot of risks inherent in them. They also have the same types of requirements as other loans, so be careful when you’re applying.
