When it comes to getting your cash in order, it’s helpful to have all the facts and figures before you apply for any type of credit or financial product. To help shed some light on text loans, we look into what they are, why someone would choose one, their advantages and disadvantages and the Sunny alternatives.
What are text loans?
Text loans are simply a payday loan which can be applied for via text message. This may be particularly handy if you quickly need extra cash while out and about, or you do not have internet access. Text payday loans are usually provided on a short-term basis of a couple of weeks to a month, and often consist of a small sum of around £100 to £1000 to help borrowers get by until they have more funds in their account.
Why would someone choose a text loan?
Because of its easy application, this kind of loan can be suitable for life’s little emergencies. For example, if your car breaks down and you’re stranded, or if you need a little extra cash to cover a family emergency, a text loan could help. They can also be helpful for covering things such as laptop repairs, as you don’t need access to a computer to apply for a text loan.
What are the advantages and disadvantages of a text loan?
The main advantage of a text loan is how simple and quick the application process is. You don’t have to worry about finding a computer to apply for money, and you can do it anywhere you have a phone signal – even while you’re out of the house. Also, because they are provided on a short-term basis and usually lend only small amounts of money, it’s a little easier to get a text loan with bad credit than it is to get approved for some other types of loan.
On the other hand, loans that are that quick and easy can come with some questions relating to security. Checks are carried out are for the borrower’s financial safety, to ensure they aren’t borrowing more than they can afford to pay back. For example, while they are an easy way to get money fast, text loans with no credit check do not offer you much reassurance when it comes to your financial future.
Do Sunny offer text loans?
At Sunny we offer a range of text loan alternatives on a short-term basis. You can apply for a loan with us using an internet enabled mobile device and a decision usually takes just minutes. If your loan application is approved, you can have the money in your account in as little as 15 minutes. So you don’t have to stand around waiting for hours.
The decision we make is based on your address, bank details and employment details. We take your credit score into account to fairly assess if this loan is an appropriate option for you, and help you avoid any problems in the future. Your credit score is a summary of your financial history and is based on factors such as electoral roll information, court records, details of other lenders that have searched your file, addresses you’re linked to, bank accounts, loans, mortgages, and energy or mobile phone contracts. If you want to check your credit score, please visit one of the following credit reference agencies, CallCredit, Equifax or Experian.
The amount of money we offer to borrowers ranges from £100 to £2500 over a variety of flexible terms. We have one of the most flexible emergency financial solutions in the UK because borrowers can adjust their repayment schedule to fit their circumstances. For example, you can pay more money each month if you wish and you can repay the sum early to save money on interest and get back to normal as soon as possible.
We charge interest daily and cap the cost at a maximum of 0.8% per day. If you’re interested in a text loan alternative from Sunny, you can find out exactly how much you’ll pay in interest for different sizes and durations of loans using our adjustable calculator.
Why choose Sunny?
We believe in honesty, transparency and simplicity, and that is why there are no added fees at all with our loans. We do not have late repayment fees, administration fees or application fees. All that borrowers are expected to pay back is the original amount plus interest.
We aim to provide a lifeline for our borrowers, as we help them along their way. Even if they are struggling to make repayments, we work with them to get through any struggles. Before borrowers apply for a loan, we aim to make everything as straightforward as possible, so there are no surprises during the repayment process. We do this by giving you all the details you need upfront, before you make any decisions.
When taking out a loan, ensure you know all the ins and outs of the agreement before applying. Also, only take out an amount you know you can afford to pay back, to avoid any debt stacking up. Finally, try not to make a habit of taking out short-term loans unless absolutely necessary, as any application, successful or otherwise, leaves a footprint on your credit file which could lower your credit score.
If you find your application is unsuccessful, a way to make future approvals more likely is to improve your credit score. This can be done in a number of ways, for example, by making sure you pay off everything you owe on time each month, staying well below your agreed credit limits and avoiding making lots of credit applications in a short period of time. You should also close old bank accounts that you are no longer using, end financial associations with those who have a poor credit rating wherever possible, and join the electoral roll if you haven’t already.
For more financial information, and tips on how to get the most out of your money, check out our Digital Magazine – Good Vibes. If you have any additional questions regarding text loans or Sunny’s short-term loan solutions, please don’t hesitate to get in touch via our live chat. You can also check our Frequently Asked Questions page for more help.