How Text Payday Loans Work

How Text Payday Loans Work

Posted by on Mar 11, 2016 in Payday Loans |

With many new payday loans companies going online, some had to bring forth a new variation to the loan industry. Enter Text Payday Loans. Like most other payday loans, these are generally for small term borrowing and offer little amounts with high APRs.

The basic working mechanism behind a text payday loan is quite simple. Similar to online payday loans, a borrower has to fill out 8 or less pieces of information regarding their age, work related background, expected salary, on an online form, and then send a text message to the lender to get the loan.

With payday loans becoming a fundamental part of the financial landscape across the world, there is no wonder that the advent of smartphones have led to the inception of text payday loans. These mobile payday loans as some like to call have a relatively quick and easy application process. Though different loan companies may have different procedures the general rules to applying for text payday loans are quite similar:

Step 1: Register Online

Text Payday LoansWhen applying for fast and convenient text payday loans, it is essential on your behalf that you visit the website of the lender first hand. On the website they would provide you to fill their registration form thus marking you as registered borrower in their database.

Step 2: Meet the Criteria

Text payday loans are accessible to all borrowers who fulfill the following criteria:

  • Must be 18 years of age
  • Possess a bank account
  • Have a regular income

Step 3: Receive the PIN Code

After filling the online form as per requirements and meeting the criteria for eligibility for text payday loans, the next process is to receive a Personal Identification Number (PIN) from your lenders. This PIN code would be provided to you on to your mobile number which you have registered at the lenders website.

Step 4: Send a Text for Your Loan to the Lenders

Once you have received this PIN code you can use it to send text message to you respective lender’s number regarding the amount which you require as a loan. This would be generally received by your lenders reply confirming that your query was well received and now awaits confirmation from your side.

Step 5: Confirmation

Once both the lender and you are reasonably aware of the required amount to be loaned, your lender will send you a text asking for your confirmation. Again use your smart phone to reply so as to confirm your consent for the required amount along the applicable terms and conditions. This step essentially completes the text payday loans procedure as after this you would be informed about the amount being wired into your bank account in usually 15 minutes.

Apart from the above mentioned, if you are interested in text payday loans, then it’s a must that you always look for lenders with the following attributes:

  • Legitimate provider with appropriate accreditation and licenses.
  • Should have a good reputation.
  • No hidden fees apart from the cost of the loan.

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Why No One Wants To Be The Guarantor?

Why No One Wants To Be The Guarantor?

Posted by on Feb 19, 2016 in Loan |

A guarantor is someone who vouches for you and undertakes to, if the user for any reason does not fulfill their obligation to continue payments.


Businessmen and citizens are becoming more difficult to make decisions to borrow. Not only are they cautious – and the other party, the banks are, before approving the loan. placing the clients under scrutiny. No wonder, because the number of loans that are in arrears is growing from month to month.

Number of people who agreed to be guarantors and came into a situation where, instead of their relatives and friends repaying loans from year to year, they have to.

Statistics also show that, due to the economic crisis, fewer people want to be guarantors.


Some banks provide the possibility that the debt prescribes a family member or friend, who will repay the loan instead of the client. This form of debt repayment resembles the obligations of guarantors.

Some banks have gone one step further and give customers the possibility that in the event of job loss, freeze the payment of war for two years with the obligation that every three months the bank submitted evidence of employment status.

Guarantors are suing the main debtors, for which the banks had to pay the amounts that are guaranteed. Guarantors mostly obtained disputes, but in addition to being paid off someone else’s debt, to await trial costs, charges can sometimes reach the height of the credit. And if the principal debtor has no job and no assets, no court will be able to help them to collect receivables.


If it comes to that scenario where guarantor repays others’ rate, he has the ability to, said by experienced lawyers, to sue the principal debtor to offset the costs. The guarantor must account and risk, because if the principal debtor has no property, and in the meantime, was left without a job, there is not too many ways to collect something from him. Then the most common scenario that not only has paid his debt but also wasted ran a set of judicial proceedings.

The process can take from six months to several years, and the costs depend on the value of the dispute of the loan amount.

For many banks, it was important to have as much collateral, so they asked for guarantors even for housing loans. However, banks now avoid this type of security because there are fewer and fewer people who want to pay off other people’s loans and guarantee for them.

Many people do not like risk, especially financial ones. Being a guarantor is not at all a rewarding and you must make sure that the person you warrant to really be able to repay the loan. These are just some of the reasons why nobody today wants to be a guarantor.
Fortunately, fewer banks looking for guarantors and loans are generally credited directly to clients. So, if someone asks you to vouch for him, remember what consequences this may have on your financial situation.

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What Should I Know Before Applying For A Payday loan?

What Should I Know Before Applying For A Payday loan?

Posted by on Feb 19, 2016 in Loan, Payday Loans |

The majority of the population today faces financial problem every day, the reason for these financial problems are often low income, large bills and not being able to spend your money sparingly. Financial problems in households are sometimes connected with the number of family members which means more children, less money, this was recently proven, but it does not mean you should not have children, instead you will have to learn how to allocate and properly use your money.

When faced with unexpected expenses or expected but impossible to avoid, people often choose to contact their bank.

Banks and other financial institutions might provide you with the current solution, but it cannot solve your financial problems forever, the only one who can do that is yourself. When people contact the bank, they can hear about different types of loans bank offers.

For unexpected expenses such as bills, unexpected expenses of fixing and repairing your home or car, people often choose the so-called ‘payday’ loan.

Payday loan is a short term loan that a lender gives to you for a purpose of covering unexpected costs. The amount of money bank gives to you is normally small, up to about 500$, and you are required to repay them when you get your next paycheck. The conditions for granting this loan are not so demanding, a person should have a monthly income, a driver’s license, social security card and a bank account.

The money is instantly transferred to your bank account and you are able to spend it. Having this opportunity to take the money when you need it the most is a true blessing, however when you know you have this opportunity you can become pretty carefree and continue taking it whenever you are in need. This can be not such a good thing, especially if you take another payday loan to cover the cost of repaying another payday loan, you are then getting in a bank’s vicious circle. Some people never leave this circle and the moment they repay one loan they take another one. Taking one loan after another just makes you lose more money in a long term.

Even if it is an outstanding opportunity to fix your problems momentarily it is a bigger problem for you later. We should not even talk about banks interest rates and how much will you have to pay them for their services. People who take this loan should have to be careful and calculate interest rates in front, just to be sure they will be able to repay and that they won’t spend their money in vain. Sometimes borrowers have to pay a double of what they took in the end.
The conclusion is that if you are in need for a certain amount of money in this moment, the good idea is to borrow it from the bank and make your repayment in the closest possible time.

The possibility of taking another loan to repay other is not a good thing at all, so take care when you are applying for this loan and calculate everything before you lend money


.

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