“Though I am not badly off, I don’t have much money to spare. Expenditures are rising and my savings are shrinking to nil. My medical bills, education fees, car repair and several other unexpected expenditures are eating me up. I have no other options to survive instead of taking a loan.”
If these thoughts have flooded your mind, you must be looking forward to putting in a loan application. Since you are in dire need of money, the first idea that flashes through your mind will be a text loans.
Text loans are short term unsecured loans that you can apply by sending a text with your personal identification number to a direct lender, who will immediately transfer funds to your account. You do not need credit check, which means you can apply even if you have a bad credit history.
The disbursal amount varies from an institution to institution. However, you must consider your capability that whether or not you are able to repay.
You may be tentative before applying for text loans, but these are considered the best loans when you need instant money.
These loans are highly demanded because:
- You can have funds credited to your account within the same day.
- You do not need a guarantor.
- Your lender will not ask about your credit report.
- You do need to get around lenders.
How can text loans be perilous?
Unexpected expenses can affect everyone but not all have the capability to repay all instalments. Since these loans from direct lenders do not ask for credit check, they carry high interest rates. Instant credit of funds can get you out of your current problem but it invites another problem - repayment of instalments within a very short time.
You have to make a payment one way or another, so you should assess your capability to reimburse your loan. Text loans are absolutely fine as long as you can pay all instalments on time.
These loans can be managed with appropriate budgeting. If you take this loan without analysing your repayment ability, you will face dire consequences. Late payment invites high penalties on the top of your interests, which will wreak havoc on your finances.
How to stay calm with a text loan?
Even though these loans carry a high rate of interest, you can avoid falling into the debt cycle.
Consider your finances before applying for the loan
In the end, you have to reimburse your loan so you should carefully ponder over your finances. The rule of thumb says that you should be left with at least half of your monthly salary after meeting your all expenditures so that you can repay instalments. Otherwise, you will take another loan to repay the previous one. If this cycle continues, you will sooner or later realise that you are falling in the trap of painful debts.
Try to be stingy
The flexibility of spending comes with funds. Higher money means higher flexibility of spending, but you should not follow this attitude when you are relying on a loan to meet your needs. Control your expenses as much as possible. Do not go for shopping of those things that you do not need. Try to utilise your funds economically as much as you can.
Summing up
You can get text loans from direct lenders with no credit check, but it is often suggested that you should carefully monitor your budget and needs. Each lender follows different policies and borrowing capacity can be restricted if your credit report seems horrible. As long as you are not sure about your repayment capacity, you should choose other alternatives to text loans.
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