October 5, 2016
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.
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.