Text loans are the most convenient form of payday loans that allows the borrower to get a loan with the help of a simple text messages. These are short term loan and require only one time verification and approval. Every time the borrower needs money, they would just have to send a text message and the money will be credited into their bank accounts. The application method for such loans is similar to any other payday loans and the borrower will have to bear with the high interest rates. Since text loans are short term loans; hence they are considered to be high-risk loans which have to be covered by high interest rates.
Text loans are known for their ease and simplicity – these loans need only one time approval and the borrower can get the required amount credited to his account within a few minutes. Since these loans are just another form of payday loans so the repayment terms are also the same. Borrowers need to sign up for the text loans and this can be done by filling up an online form on the lender’s website. Basic details like employer’s name, address, personal information, bank account number, proof of income needs to be furnished. The best thing about Text loans is that all the details need to be furnished only once. Successful submission of the application will lead to verification and once the loan is approved, the borrower will be provided with a unique personal identification number.
The unique personal identification number can be used for future text loans as the borrower will have to send a text with only the name, amount of loans and personal identification number. This will be enough for the lender to issue an electronic fund transfer to the borrower’s account.
Borrowers need to keep in mind that even though the amount is small, they would have to repay it on time. They are bound to get the amount deducted from their next paycheck and in case they default, lenders will charge a hefty penalty. Non-payment will also lead to a dent in the credit scores and the borrower will find it really difficult to apply for bigger loans when they need it. There is also no restriction on the usage of text loans, so the borrowers can use it for any purpose they deem fit. Text loans are easy traps for people to keep increasing their debts, so it is important that the loans are availed only when there is dire need for the same.