Text Payday Loans are an even faster way of borrowing short term cash. There are a number of companies that offer a text loan service, and they charge varying amounts of fees.
There are always situations in life that we don’t expect, and sometimes, a payday loan can be a real lifeline, if you are unable to borrow emergency money when you need it in a cheaper way.
If you are expecting a payment and it is late arriving maybe, or if you have had a plumbing leak and you have nowhere else to secure cash quickly.
The usual way to apply for a payday loan is via the Internet – a no fax payday loan. This is still a fast process and most lenders have a fast application form on their website, and you will have a decision in about 20 minutes.
If you are approved the money will be in your account within about 30 minutes, depending on the payday loans lender. Occasionally a payday lender can require additional confirmation of income or ID to be sent by fax.
There are a huge amount of payday loans companies online and their services and charges vary. We detail them on our site as much as we can and compare charges for you so you know you are getting the best deal.
However, text payday loans are fairly new to the payday loans market. The first time you apply to borrow money with a text payday loan lender, the usual application process is followed.
What we mean by this is that you would apply via their website and you will be assessed with an income and ID check and a brief credit check depending on the lender. It works exactly the same as a no fax payday loan the first time you apply for a loan with a text payday loan lender.
A brief credit check generally means that the text payday loan lenders will check if you have ever been registered bankrupt, and whether any debt collection agencies are trying to recover a debt from you. If this is not the case, and you are employed with a regular provable income, you will generally be granted a text or any other kind of payday loan.
Where text payday loans differ from no fax payday loans and payday advances is that once you have been approved for the first loan and paid it back on time, further cash advances can then be obtained by sending a simple text message to the company.
You are given a PIN number which you can use to text the company to borrow money, if you require future payday loans.
In most cases you will have your second loan within minutes in your bank.
Most, if not all text payday loan providers do NOT do further credit checks on you, AT ALL, after you have borrowed your first loan and paid it back satisfactorily.
So, so long as you repay your text payday loan when you say you will, if you need another text payday loan in the future, so long as you are in good standing with the lender, you will generally just be able to text them and have it in your bank ASAP.
This can be very appealing to people, but PLEASE be responsible and NEVER take on short term credit unless you can afford to repay it.
Some providers of payday loans are more reputable than others but on the whole their charges and the length of the loans on offer are fairly standard.
Most decent payday lenders will show examples on their websites which show potential borrowers exactly how much it will cost to borrow an amount for a certain period of time. A lot of times this is with fancy graphics to make it really easy.
All lenders, of ANY type of loan, are also required by law to quote an APR (Annual Percentage Rate).
The APR rate is very high for payday loans, but this is because they are not designed to be used for a whole year. Please click any of the links in orange if you would like to know more about any of these terms. 🙂
The most important thing you need to look at is, how much money do you have to repay, and when. As a general rule, borrowing £100 for 30 days will cost £25-30 in interest. ( or replace the same figures with US $$ or your own currency – the interest rates are fairly standard worldwide for very short term borrowing)
So please do not let the actual large number of the APR rate – 2700%, 4000% – influence you too much when you are deciding whether to take out a payday loan or not.
The real danger of taking out a payday loan for the wrong reasons is falling into a ‘debt spiral’. This happens if you borrow money, and are unable to repay on time, and you try to solve the problem by taking out an additional loan, to repay the first loan, and you do this on an ongoing basis.
You MUST be honest with yourself and make 100% sure that you WILL be able to repay a payday loan when you agree to. Otherwise costs can add up fast and the debt can get out of control.
That said, if you have a real ’emergency’ situation where you need cash immediately but you are definitely able to repay the money by the due date, a payday loan can be useful if you have no other, cheaper ways to borrow the emergency money.
Money borrowed from payday lenders should NEVER be used to fulfil normal monthly or weekly commitments such as rent or mortgage payments.