SMS Loan Before Payout
Most of us have a deep pocket in the pocket a few days before payday. But for many years, our financial credits have been available for these situations and can help out in case of urgent spending at the end of the month. What are the advantages and disadvantages of these SMS loans before and when it is worth asking for them?
Pre-paying loans are characterized by speed and high availability. There is no need to wait days for the necessary 1000, 2000, 3000 or 5000 CZK to be paid out – after completing the online application and its assessment and approval, the money is sent to the applicant’s account in the shortest possible time. In theory, you can have money on your account within an hour, but in practice it may take a little longer.
No income statement
In any case, in most cases, the confirmation of income from the employer is no longer necessary – for the application it is usually necessary only to fill in truthfully the data on income and expenses and send a scanned (or photographed) copy of the identity card.
Writing in registers may not be a problem
As smaller amounts are provided, a lower number of creditor companies in this area tolerate both lower applicant income and possible entries in debtors’ registers. Some companies do not deal with debtor registers at all and provide these SMS loans without a registry. For example, students, pensioners or women on MDs, or those who have had problems with repaying other loans, have the opportunity to get a small short-term loan.
Beware of penalties for default
The fact that SMS loans are available “for everyone” before payout does not mean that they are also tolerant of chronic defaulters. On the contrary, the disadvantages of these products include the fact that the “sinner” can face very high penalties when defaulting on liabilities. Although the new Consumer Credit Act sets the maximum possible limit for these penalties, a few outstanding thousands may still be very expensive to pay.
And these loans themselves are expensive – due to the high availability and speed of settlement, interest rates and, in particular, the APR are set very high – for example, the client pays CZK 3,000 for borrowing CZK 10,000 for 30 days. Therefore, these loans need to be used in moderation and only in the most necessary cases. Otherwise, one can easily get into a debt spiral.