Having a loan-free life is not possible for everyone. It is a harsh reality that everybody has desires but all of us do not have enough funds to fulfil them. However, your spending does not align with your planning due to unexpected outlays. As a result, you contact your bank.
It is true that banks are to support you when you are in need of money, but do you always get assistance from them? No, many times your applications are turned down due to bad credit scores, and if, on any account, your application is approved, it takes a bit long time. Eventually you are left with the only option – short term loans from direct lenders. Many financial institutions provide various types of such loans regardless of your credit check, but instant text loans are most sought after.
What are instant text loans?
You can apply for these loans without getting around lenders. You just have to text the message to a lender along with your personal identification number and you will have funds credited to your account immediately. This is a hassle-free process, which requires NO GUARANTOR and CREDIT CHECK.
A few loan companies do not ask for credit check and therefore it is convenient to get the loan approved. Please note that each lender follows different policies so you have to ask your lender about the borrowing limit. However, it usually varies from £100 to £1000. Further, some lenders may consider your repayment capacity to decide on the disbursal amount.
These loans are small in size and duration and hence not all lenders bother about credit perusal. Even if you have a less-than-stellar credit score, you do not need a guarantor and collateral to receive money. These loans also do not cause you hassle on due dates. The instalment amount will be deducted from your bank account as you receive your salary. These features enable these loans most popular, yet you need to explore more about them.
Two prominent reasons for the high demand of these loans
There are several reasons for which you may need these loans, but these two are the most common.
· Unexpected expenditure
Suppose you need a medicine urgently, that is a bit expensive and you do not have enough to buy it, or your boiler is not in commission, or your car needs repair, you can apply for this loan by sending a text to a direct lender.
· Business funds
Business is all about money. You never know when you can encounter the need of money. If your business needs funds and you lack them for any reason, you can take this loan. Even if you are a small entrepreneur with less-than-perfect credit history, you can apply for it.
When should you not apply for them?
Avoid taking this loan:
- If you are not sure about your repayment ability.
- If you cannot bear high interest rates.
If this is the case, you should use alternatives to these loans, which include but not limited to payday loans, doorstep loans and online loans.
The bottom line
Undoubtedly, text loans carry high interest rates but they play a significant role in fulfilling the needs of Britons. As long as you are comfortable with paying high interest, these loans are the most convenient.
