Alternatives to sms loans
Most loans you find here at Good Finance are so-called sms loans, ie small loans that are paid off quickly. There are both advantages and disadvantages to such loans.
The advantages are that you get your money quickly if you need it and that there are completely duty free and interest free loans, but it is very important that you can really pay back a free loan on time, otherwise it will be as expensive as all other loans.
Expensive yes, there we have the disadvantage of sms loans
The nominal interest rate is significantly higher than for other loans, although it will not always be very expensive if you only borrow a few thousand dollars in any month.
The thing with the high interest rate makes many people want to find cheap alternatives to sms loans and so are there. Now, we certainly do not think that it is the high interest rate itself that is the biggest problem with sms loans, we think the biggest problems are:
- The loans have such a short repayment period, not everyone is able to repay several thousand kronor just after a month.
- People borrow money when they should not, for example, to pay bills.
This is what we start from when we show you what the alternatives to sms loans are, ie where you can borrow longer and cheaper and give you tips on what you should do instead of borrowing money for things like bills.
Cheaper options for those who find it difficult to get a loan
We are well aware that many people who take sms do so because they do not earn enough money to get a regular private loan or because they have payment notes. Here we will therefore look at three relatively inexpensive alternatives to sms loans that are not so difficult to obtain: small private loans, loan brokers and online loans.
Small private loans – for those in a hurry
Here at Good Finance you will find several smaller private loans that have a longer repayment period and lower interest rates than sms loans, loans that you, as well as rated by the banks, can possibly get. Many of the loans can end up in your bank account on the same day and are also counted as fast loans. The effective interest rate for these loans is usually around 10 – 33%.
These loans can be found under large & small private loans and there you can also see which lenders can grant loans despite payment remarks and what the loan interest rates look like. Many of these lenders also have no specific income requirement but make an individual assessment of your ability to pay instead.
Mortgage brokers – if you have time to wait
You will also find private loans from several of our loan intermediaries who cooperate with credit companies that are relatively generous in their assessments. Some of them actually accept payment remarks and sometimes the income requirements are quite low, from SEK 100,000 / year more specifically. Another benefit of turning to a loan broker is that they only take a single UC even though your loan application is shared with many banks and credit companies. The disadvantage is that it often takes up to a week until you get your loan.
Online credits – as low requirements as sms loans
We also have a number of online credits that have a lower interest rate than sms loans, but keep in mind that they are, after all, more expensive than regular card loans. However, an online credit is a fairly inexpensive option if you repay what you have borrowed within one, two or three months.
The advantage of these credits is that the lenders have no specific income requirements (or the requirements are low) and that there are credits that even you who have payment notes can get, which is otherwise extremely unusual when it comes to account credits. And since these are the same actors behind sms loans and online loans, it is quite easy to get such a credit and you usually get access to the credit as quickly as a sms loan.
If you have trouble getting your finances together
However, you should not choose any of the above options if you are planning to borrow money so that your finances do not go together, because it will only make it even tougher for you in the future. No, if you find it difficult to pay for your bills, try this instead:
- If you have kind parents, it is better to ask them if you can borrow a thousand or two until the next salary, then you do not have to pay interest. Also, you won’t be punished too harshly if you can’t pay back in time. But be careful about borrowing money from friends because it will create a bad relationship if you find it difficult to repay.
- Try to sell something of value. Selling gadgets is not fun, but it is still better than the economy crashing altogether.
- Contact the person who sent the bill and explain your pesky situation. Tell me that you will pay a little late but that you will actually pay, it may mean that you do not have to end up with debt collection.
- If you have many expensive credits and loans, it can sometimes be worth trying to settle them with a mortgage that has a lower interest rate.
- Read our articles on how to avoid debt and how to become debt free so you get significantly more tips on how to work out your finances.