Jessica Rodz October 1, 2019
There is a common assumption that the short term loans have always been provided on the high interest rates. It is an obvious process and the lenders are correct to their policies. The small amount always fetches hefty rates while the long term loans invite low interest rates. The main reason is that the small loans are most of the times not backed up by the security. On the other hand, the large loans always include collateral to secure the amount. Wherever lender has the assurance of getting money back, it will put rates on the lower side. As far as text loans are concerned, they indeed come up with high interest rates by considering their small nature. These may be the possible reasons for it:
- Borrowers do not need to put any collateral because the amount is small
- Guarantor’s presence is also not mandatory (again the short amount is the reason)
- People with any credit histories can avail the loans
Are mobile text loans worth to be applied Despite High Rates?There are many individuals, who have this question in their mind. Most probably, they are more bothering about the interest rates. It is not wrong to be concerned about the interest rates because borrowers have to pay them if they want a loan. But at the same time, getting too much concerned about that issue should not be done. Instead, if borrowers plan everything according to their financial needs, then there is nothing wrong in applying for the text loans. Now another question rises in this discussion that how a borrower can prepare himself to avail these loans? Well, the possible answers can be summarised as:
- Borrowers first have to know their urgent financial needs and then decide whether to go for loans or not.
- If they have decided for the loans, then they must do a proper research in advance so that whenever they face any emergency, they know the right lender to whom they can text for the loan deal.
- It is a fact that opportunities of small loans are also available for the jobless people but it would be better if you are working as a full time employee while applying. It is because when the lender does not require collateral or guarantor, your income status guarantees the loan repayments.
- Most of the people largely go for the loans because they have to apply. Long term loans may take time in completing the process while small loans bring the instant approval. Therefore, if you go for these instant short term loans, then your need of getting quick funding can be fulfilled.