When You Should and Should Not Use SMS Loans

When it comes to quick cash loans, SMS loans (also called text message loans, or SMS lån in the Scandinavia) seem to be the ideal option. Although the APR for a small loan can be as high as 15000%, in reality, if you repay the money on time, you are paying around 10-30% in interest of the amount you borrow. Borrowing $500 SMS loan for 7 days, for example, you may be required to repay a total of $550. The interest rate is 10%, but the calculated APR is 14200%. If you are happy with the numbers you may want to go ahead and borrow the money. However you should really ask yourself the question – when should I and when should I not borrow?

You should borrow SMS loans if:

  • You have a few days left until the next pay day and have to pay an unexpected expense.
  • You need to buy something but can not access your savings at the moment.
  • You are not trying to borrow a large lump sum.

You should not borrow SMS loans if:

  • You are going to use the money to repay another loan.
  • You are going to use the money to buy something that you really can not afford.
  • You apply for a loan without being sure you can pay back within 30 days.
  • You need a $1500 loan or more, this is simply impossible with SMS loans.