Have you ever been in need of money and you realized that your paycheck just won’t cut it? Or, have you been thinking about buying a car, for example, and have you just found a great deal, but don’t have enough cash to pay for it? Those situations, and much more, such as home renovations, traveling, organizing events and similar things, all call for finding a quick solution. And, what could be quicker than an SMS loan?
Heard of those already? If you’ve been planning on getting one of these in Norway, you should first learn what they really are and how they work, so that you don’t start having some unrealistic expectations and therefore get disappointed afterwards. Or, so that you don’t miss out on some great opportunities just because you weren’t aware of them. In any case, understanding clearly what an sms lån is, whether you can get it in Norway, as well as how to get one if you decide to go for it, is certainly important, and I’ll start answering those questions for you right now.
What Is an SMS Loan?
SMS loans that were once carried out without a credit check have become illegal in Norway. Probably not what you expected to hear, but that’s the way it is. While in the past, lenders have agreed on extending loans to borrowers without performing credit checks, and doing so by letting them apply through nothing but a text message, they no longer do that. So, in its most basic form, an SMS loan is impossible in Norway.
Yet, the term still remains. What is it used for today, though? Or, put differently, what do SMS loans represent today in this country? Basically, they are used as a marketing term for unsecured loans, usually small and microloans. And, of course, the part of applying through a text message still remains, which is why this term is being used nowadays as well.
Are you wondering what it is that tightened the rules on this option and that made it impossible for borrowers to get loans without a credit check? An increasing number of non-performing loans, of course. The risk of default was huge, which is why keeping the option in its original form was unsustainable.
Still, as explained above, lenders have found a sort of a half-way solution, offering unsecured loans to borrowers and allowing them to apply through a text message, thus combining the best of both worlds. Understanding what an unsecured loan is, thus, will give you a clear picture on what an SMS loan represents in Norway today. Something that is also further explained on https://billigsteforbrukslån.com/sms-lån/ and similar useful sources.
Ever heard of unsecured loans before? Put in few words, those are personal loans you can get without having to provide your lender with collateral. That is, without having to offer up any of your assets as security that you’ll repay the actual money you’ve borrowed. Lenders put their trust in you, that you won’t default on the loan, but they also protect themselves with higher interest rates that deter those borrowers that aren’t serious. And, of course, they do credit checks so as to decide which borrowers to approve and which ones to reject.
Can You Get It in Norway?
So, now that you have a better understanding of what an SMS loan represents today in Norway, you’re wondering whether you can actually get one. Well, apart from meeting those general requirements, such as age, residence and fixed income, you’ll also have to do well on your credit assessment so as to be approved for this particular opportunity. Thus, people that don’t have a good score risk being rejected.
All in all, the bottom line is that you can get this type of a loan in Norway, and you could even get approved on the same day if you have a good score. There may be some lenders willing to work with borrowers with poor scores as well, but improving that score is actually the better option. Do so by paying your bills on time, paying off certain debts and even by checking your credit report for errors that could be driving the score down.
How to Get It?
Having realized you can get an unsecured loan through a text message in Norway, and that you could even get approved on the same day, you’ve decided that this is the best option for you when in need of some quick cash, for whatever possible reason. So, the thing left to do now is get a clearer understanding on how to actually get your loan in this country, and how to ensure you’re getting the best one for you. This could take some work and effort, but it will certainly be worth it, because you’ll ultimately be happy with the choice you’ve made.
1. Improve Your Credit Score
As I’ve mentioned above, working on improving your credit score is definitely a crucial step. Mentioning it again is just to emphasize the importance of doing it before applying. Find the tips you need and take all the right steps towards improving the score and then proceed towards applying.
2. Search for Different Lenders
Done everything you can for the score? Then it’s time to dive into doing the necessary research. Starting with, of course, searching for different lenders that offer the opportunity of getting these kinds of unsecured loans. Rushing into applying with the first lender you come across is not a good idea, simply because there might be some better options out there, and you won’t be able to find them if you don’t do the research. Search for lenders online, or talk to other people that might have taken out these loans in the past, so as to create a list of potential ones and then start checking them out in more details.
3. Compare Their Interest Rates
When aiming at checking out those lenders in greater details, you should begin by comparing their interest rates. Expect to get higher rates offered for these loans than for secured ones. But, don’t agree to just any rate before you do the comparisons, because you can still find some lower ones that will be quite favorable for you. Finding websites that list different lenders and their options at one place can help you compare those rates more easily.
4. And Their Offers in General
Apart from simply comparing the rates, you should compare the entire offers in general, as there are other terms to consider in addition to the rates. Such as the processing fees, fees for being late with your payments and similar things. Once again, those websites you can find will be of help during the comparing process, as you’ll get all the relevant info from one and the same, objective and relevant source. Without doing the comparisons, you could wind up agreeing to poor terms and regretting that after a while, and you certainly don’t want that to happen.
5. Check the Application Process
Once you’ve selected the right offer for you, proceed towards checking the actual application process. The application process shouldn’t be difficult at all, but the actual steps depend on the lender you’ll choose. It is important, however, to check them in advance, so as to be sure you’re taking the right steps while applying, and that you won’t be rejected due to making a mistake during that procedure.
6. Apply
Have you checked everything thoroughly out? Time to apply. As mentioned, this should be an easy process, after which you’ll just have to wait for the lender to process the application, perform a credit check on you and approve you for the loan you want to get. This won’t take too long either, which is another great advantage.