SMS credit is one of the easiest ways how people can get the money when personal funds are emptied. SMS credit is the loan which can be received via SMS. SMS credit is meant for situations when person has no access to internet and computer. If person is registered in certain lender’s website, it has to find a place which has a good mobile network coverage and has to send a message to chosen lender. It is possible even in the middle of the forest!
However, SMS credit, like other loans, are not meant for ordinary things, but for extraordinary situations, for example, for some accidents or urgent visits to doctor when personal funds are emptied, but the pay day is few days away. SMS credit is definitely not meant for entertainments and other unnecessary aims. SMS credit is one of short term loans which has short repayment time – usually it is up to 30 days. Another feature of SMS credit is high interest rate.
Fast loans which are obtainable via SMS are available recently. The first lender who offered SMS credit appeared in the year of 2007, but since that time the number of lenders has grown. Today the majority of lenders offer SMS credits, but there are still lenders who do not offer such option. It can be said, that SMS credit is the same thing as fast loan – only the way how the request is sent differs. The application for fast loan can be submitted through the Internet or in person, but application for SMS credit can be submitted via SMS.
If person has faced the situation where personal means are insufficient, but asking for financial help to relatives and friends is not an option, SMS credit can be the way out of financial difficulties. However, it is important to remember that SMS credit can help only in temporary difficulties – if you have long term financial problems, do not choose fast loans like SMS credit, but ask for help to some credit counsellor, otherwise your financial problems may become even worse, because SMS credits are one of the less favourable loans. If you have difficulties with loan repayment, there are two options which can relieve the situation, but in both cases you will have to overpay. One of options is extension of repayment time, but other option is to do nothing which can lead to big debts, liabilities with debt collectors and bailiffs, negative credit history, insolvency and crime. That is why it is recommended not to ignore your debts and search for some solution.
Of course, as mentioned before, there may be situations when SMS credit is the only option. If you need SMS credit, compare all of lenders and their offers before submitting of loan application. Firstly, you have to find a lender which offers SMS credit, because not all lenders provide such option. Secondly, it is recommended to choose a lender which offers an interest free loan, especially, when small amount of money is needed. Interest free loans have no interest rates and they are meant for new clients. The maximum amounts of interest free loans varies depending on lenders, therefore, it is important to compare and choose the lender which can ensure the necessary amount of loan. Remember, that if you have borrowed an interest free loan before, it does not mean that you cannot get it repeatedly – you can become a new client of other lender and borrow money for free.
Of course, it is insufficient to compare these two aspects, because one of the most important factors which have to be compared in order to find the best deal is an interest rate. SMS credits, like all fast loans, have high interest rates. To avoid overpaying choose the lender which offers loans with the lowest interest rates. Interest rates have to be compared even when it is the first time of borrowing and there is possibility to get an interest free loan, because life is full of surprises and, unfortunately, with negative surprises as well. Something unexpected can occur, disturbing to repay the loan in time. In that case an extension of repayment time may be needed, which means that an interest free loan may become a loan with interest rate. Agree that in such situation an interest rate plays a significant role.
Every lender downs age limits. Some of lenders serve clients who have reached the age of majority, but some of them serve only those who are older than 20 years. It should be mentioned that, lenders determine not only the minimum age, but also maximum age, therefore, if you are older than, for example, 72 years, you do not have possibility to get SMS credit.
Taking into account that SMS credit is short term loan, the majority of SMS credits has repayment term which is not longer than 30 days or one month, but some of them have repayment time up to 45 days. If you want to repay your loan in time without any term extensions, choose the lender which offers loans with longer repayment terms, because no one is safe from unpredicted expenses during loan repayment. To avoid late fees and debts, lenders offer an extension of repayment time, but, of course, this service is not for free. Cost for extension of repayment time depends on the amount of loan and interest rate for extension which is usually higher than interest rate of loan.
Everyone should know and remember that SMS credits, like other fast loans, are not given out at any time of the day. Lenders have their own working times when they are examining and assessing loan applications. Of course, it is possible to submit an application at any time of the day, but it is estimated during lender’s working time which is usually from 07:00 AM to 00:00, but it may vary depending on lender. Since no one knows when the loan might be needed, it is recommended to choose the lender which has the longest working hours. Remember to pay attention to working time on weekends and holidays too.
Do not forget to compare lenders in other aspects as well. If it is possible, find out reviews about chosen lender, because they are usually written by real people who have already borrowed money from certain lender, therefore, they include not only positive reviews, but also criticism which can be useful in decision-making. Before you submit an application, read an information and conditions in lender’s website.
In order to use an option of SMS credit, firstly you have to register in lender’s website. Registration requires an information which is connected with personal data such as name, surname and personal code, as well as phone number, bank account and income. To approve your personality you will have to transfer a certain amount of money to lender’s bank account. Entered information must be true, because misrepresentation of information is a criminal offence. When the registration is done, the potential client has possibility to submit a loan application via SMS. Text message must include an information about the amount of necessary loan and the repayment time. To find out whether other information must be included in a message visit lender’s website, because each lender may have different conditions. When the message is sent, wait for lender’s approval or rejection. If lender’s answer is positive, wait when the loan will be transferred to your bank account.
Of course, it is not so simple. To receive SMS credit potential client must correspond to lender’s criteria. Potential client has to be the citizen of Georgia or the non-citizen with residence permit. Also potential client’s age must correspond to lender’s preconditions, but the most important thing to which the lender pays attention is borrower’s credit history and ability to pay.
During the registration in lender’s website the borrower usually needs to show its income. If the borrower requests small amount of money, lenders believe that it has not lied about its income, but in the case of bigger loan lenders may require some documentation which formally approves borrower’s income, for example, a statement from the Revenue service or the employer, as well as a bank account statement. Basing on amount of borrower’s income, lender understands whether the borrower has ability to repay the loan. If borrower’s income are too small, its request may be rejected. Without an examination of borrower’s ability to pay the lender runs the risk that the loaned money will not be refunded and the lender will have a loss. Therefore, in recent years lenders are paying increased attention to amount and stability of borrower’s income.
The second factor which influences lender’s decision is client’s credit history. Credit history shows not only previous, but also actual loan commitments, as well as how they are being settled. If the borrower has had difficulties with repayment of previous loans and it still has debts, it can be seen in debtors register. When the person gets into this register, it damages its credit history, as well as its possibilities to get the loan in the future. In addition, person’s information stays there for about 10 years even if debts are repaid. This information is available for lenders which means that, if the borrower is recently included in debtors register, there is a risk that there will be difficulties with repayment of new loan as well. That is why lender may not lend money. But if the information in debtors register is several years old, there is a possibility that the lender will lend money, hoping that the person has changed for the better and will repay the loan without difficulties and debts.
Only after the evaluation of these factors – credit history, income, solvency and amount of required loan – lender decides whether to accept or reject client’s request. The lender assesses all risks which may be connected with the borrower and thus ensures itself against possible losses. SMS credit, like other loans, has to be borrowed responsibly, assessing our ability to repay the loaned money in time. If you have any doubts about the loan repayment, look for some alternatives – perhaps the loan is not so necessary and it is possible to get along without it.