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.