Tips And Tricks For Loaning

SMS lending in Sweden – good or bad?

Money lending

SMS loans have their problems as well as benefits. Before picking any of them, you have to be sure that it is the right option. Only take one when you are in genuine needs, and never use it to finance leisure activities. In this article, we will provide you with the benefits you get in Sweden as well as their drawbacks and how they compare with those in the United States.

The benefits

Always remember that this option isn’t for everyone. Therefore, before taking out one, you have to be confident that you will be able to repay it and its interest at the same time. Otherwise, you won’t have any other way of accessing them. The following are some of the benefits:

– Instant cash

This is a significant benefit. If you qualify for one, the lender will deposit the money into your bank account instantly. Therefore, you will be able to withdraw the money as soon as possible. Moreover, most banks in Sweden have speedy payment services which permit companies including lenders to provide the quick payment service.

– The application process is easy

You can either complete the application online or through your phone. What’s more, you can choose to do this either at night or at daytime. Visiting the local offices or speaking to customer representatives won’t be important. After filling the necessary form, you will receive an instant decision. Always try to avoid the lenders with additional charges.

– Larger amounts

It won’t take long before you have built a track record with lenders. They will then start increasing your lending amount gradually on every additional request. Therefore, by always on time, you will be on the safe side; lenders will provide you with cash when you need it.

Some problems related to SMS loans in Sweden

 Before you even think about taking a loan, there are some aspects you have to remember. Also, you should think hard and long about these aspects. They include:

– Higher interest rates

This is a major downside related to taking them, as compared to taking overdrafts or small loans from a building society or a bank: the payday lender will always charge a higher interest rate. Banks and building societies offer ones that accumulate lower interest rates.

– Additional charges

When applying for a smslån in Sweden, you have to expect some extra costs. Additionally, if you are unable to repay the loan on the right time, the lender may hit you with various additional fees. Therefore, only when you are 100% confident that you will repay the entire amount plus the interest on the date you agreed with your lender. Failing to pay on time will lead to the growth of the additional charges and fees, and what’s more, your loan will cost more in the future than expected.

– They may affect your credit rating

Any failure to pay on time will reflect on your personal credit score, particularly if all your lenders are using credit rating agencies to make decisions. Most lending companies rely on credit rating when offering loans to their clients, and many of them refuse to provide loans to individuals who take them regularly.

How SMS loans in Sweden compare with those in the United States

Both in the USA and Sweden, lenders charge higher interest rates. Moreover, in both countries borrowers are always at a risk of incurring additional costs. Therefore, before you consider taking one, look to see whether there are other alternatives open to you depending on your situation. Borrowing from relatives or friends is better as they are less likely to charge you an interest rate. But if you don’t like the idea of borrowing from friends or relatives, payday loans may be a better alternative.

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Financial Tips for Short-Term Loans


What do you do when you need money? Most of the people are used to ask their relatives or their friends to loan them some money for a short period until they get the paycheck or the salary. However, what do you do if they can’t give you the money that you need?

cash-advanceGoing to a bank is out of the questions because you need the money right away, and it doesn’t need to be a significant amount. For this situation, you have the possibility to go to a financial institution and ask for an SMS loan or a payday loan.

Don’t consider that they won’t give you the money – they are customer-friendly and most of the times they will serve anyone.

Let’s see some financial tips for getting short-term loans.

What It Means

First of all, you need to have the right knowledge about this loan. An SMS loan or a payday loan are not your regular types of loans. It’s true that they are for short-term, but they process of eligibility is not the same as with a bank.

Apart from this, the interest rate of any of these loans is higher than what a bank offers, and not everyone can afford to pay back. Imagine that if you take $100 from them, you will have to give back even $200 or $300, depending on what financial institution or lender you have used.

Taking a loan of this type should be only in an emergency situation, like making a purchase or a unique financial situation. You can’t use the money for paying the bills or for daily shopping.


The process of applying for an SMS loan or a payday loan is different from what you find in a bank. The financial institution won’t check out your credit history because they almost expect you to have a bad credit history. However, they will make a different thorough check on you – they want to see if you have a job and for how long have you been working; they want to know if you get a salary or if you have a constant income and they will also check the status of your account.

All this is valuable information for them, because based on it, they will determine if you will receive the loan or not.

It’s different than the scoring that the banks create, as you can apply here even if you have a history of bad credit.


These types of loans are harder than a loan taken for an extended period. The main reason is the interest rate that is higher than what banks usually offer. You get the money almost instantly, but you will also have to give back more money that what you have taken. It may not seem fair, but for those who have an emergency financial situation, this type of loan is the best they can choose.

Direct-Lender-Payday-Loans1You will need to know when to give back the money, how much money you will have to pay, what are the consequences if you don’t pay in time and so on.

The agent from the financial institution will need to answer all your questions regarding the loan, and you need to sign the contract only after you have understood the rules that you need to apply to it.

Don’t consider that you will be able to pay your bills with this loan – it’s important to remember that you might enter a debt spiral if you take too much money and don’t pay them back in time.

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