SMS loans are the type of consumer loans that usually include small amounts such as $ 1000, $ 2000 and $ 3000. The credit period on a sms loan is usually 30 days. Since its inception, Mr Waggers granted SMS loans to approximately 90,000 customers in Sweden. Mr Waggers wants to raise the question of who to turn to if you need a quick loan for a short period?
Who do you turn to when you need to borrow 1000, 2000 or 3000 USD?
Most of us end up at some point in their lives in a situation where they need to increase cash and you may be in need of borrowing money. These may be major loans such as home loans, a quick loan or a small loan. There has been a lot of discussion about just sms loans and many people choose to paint a negative picture of the loans even though a sms loan can be more advantageous than other types of loans.
For some, it is natural to turn to friends while others turn to family members to resolve a temporary shortage of liquidity. Unfortunately, not everyone has the opportunity to borrow money from friends or family and then the question is where to turn?
Sms loans through your bank?
An investigation by Mr Waggers has shown that it is virtually impossible to borrow $ 1000, $ 2000 or $ 3000 from a traditional bank. In the single case where, theoretically, it was possible to borrow $ 1,000 from a bank, the setup fee cost $ 700 and the annual fee $ 250, the interest rate was about 9%. You can quickly calculate that it will be too expensive for a small quick loan.
Most banks instead refer to a so-called account credit or to a larger bank loan where the lowest loan amount, at one of the banks, is $ 30,000 and $ 40,000 with another. Mr Waggers is very skeptical that you should borrow larger sums, for example, $ 30,000 when you really only need $ 1,000 or $ 2000. In addition to not being able to take a small loan from the bank, it takes, at best, at least a week to get an account credit, or a fast loan.
Account credit, bank loan or SMS loan?
We think you should be careful about borrowing more money than you need. Imagine that you need to borrow $ 1,000 and that you turn to your bank that recommends you an account credit of $ 10,000 with an annual interest rate of about 9%, a setup fee of $ 700 and an annual fee of about $ 250, which you apply for and will be granted. Compare that with taking an SMS loan of $ 1000 and paying back $ 295 after 30 months, which option is best for you who need a small loan for a short period?
One must be well aware of the risks that come with a larger bank loan or an account credit. For many, the more money you have available, the more you waste and if you have used up your credit of $ 10,000, you are sitting there with a debt of many more thousands of dollars than if you had taken a sms loan.
Find the right loan for you and your situation
It is not always the interest rate of a loan that determines if the loan is good or bad. The main thing is that a borrower finds the right loan for the situation and is not attracted to take larger loans because of lower interest rates, which are still expensive. This is one of the reasons why Mr Waggers believes that the effective interest rate for a quick loan is not the most important thing to consider, instead you should take into account the actual cost of the loan and ask yourself the question of whether it is the right loan for you!
Mr Waggers wants to take the opportunity to warn against being attracted to larger bank loans or account credits that you don’t really need, many times a sms loan may be more suitable for you and your situation.