One can say that the entire world is at your fingertips in today’s world where our mobile phones can do so many things. This small device is so important that it has completely revolutionized the way we go about our daily activities. Businesses are using this advancement to make their business processes so much easier. Even the banking and financial industry is not left out in all this.
Mobile banking is now so widespread that you can do a lot of bank processes without stepping into the bank. You can check here to learn more. You can even apply for and get a loan from the comfort of your home using just your smartphone.
Mobile loans are easy to apply for and get. But there are some downsides to it that if you are not careful, you’ll fall for. This is why this article will discuss everything you need to know about this option. So that if you eventually need one, you’ll know just how to go about it.
What is a Mobile Loan?
A mobile loan, as the name implies, is a fast and easy way of applying for and getting a loan via your smartphone. There are several ways to go about this. One way is by sending an SMS to the bank or the financial entity to apply for the loan. Another way is to apply for the loan either through your phone’s web browser or an app.
Regardless of the method you use in applying for the loan, once it gets approved, the fund will be sent directly to your bank account. This means that the whole process is done digitally. Isn’t that so convenient?
Furthermore, it’s also very fast. Once the bank (lender) gets your application, they process it immediately. Approval is fast-tracked. Once this is complete, you’ll get the funds immediately.
Things to Know When Applying for a Mobile loan
If you are in a fix and you need urgent funds without using collateral or going through a tedious application process, then you need all the help you can get. Getting loans through your phone is a simple process. However, if you are not careful, you can make some choices that can create a financial problem for you.
For example, some financial entities that offer this kind of loan often add hidden charges to their terms and conditions. You may end up having to pay way more than what you bargained for. The only way to avoid all these is to know the right steps and things to look out for before getting into this process. Therefore, below, we will look at some important details and steps that you need to follow when taking a mobile loan.
Figure Out the Type of Loan You Need
The first thing you need to do is find out the type of mobile loan you need. There are different types of loans that you can take depending on what you need the money for. For instance, if you want to buy a car, then you’d take an auto loan.
Personal loans on the other hand are typically used for anything from financing a wedding to home improvement to financing another debt and so on. There are two major types of personal loans depending on if you use collateral or not. Unsecured loans are obtained without collateral while secured ones need collateral.
Remember we said mobile loan does not require collateral. So, if you are getting a personal mobile loan, it will be an unsecured one. The reason you need to figure out the kind of loan you want to take is that it will help you streamline your search.
This is because some institutions that offer these mobile loans may not offer all the different types of loans. Some may ask to know what you need the money for while others may not. The important thing is that you know what you want so you can get the best there is to get.
Check Your Credit Score
While getting a loan from your phone is relatively easy, it does not mean that the financial institution giving it won’t review you before approving your request. The company will want to know for sure that you will pay back the money you borrow. They may take a look at your credit score.
To get a mobile loan with a good rate and payment plan, you need to have an okay credit score. However, if your score is low, it does not eliminate your chances of getting loans. It just means that you may get one with a high-interest rate.
If you want to avoid this, consider getting your score up before you apply. This may take a while but it’ll help you avoid getting into financial stress down the road. It will also enable you access higher loans.
Look for the Best Offer
There are so many financial entities offering mobile loans out there. Some may have shady offers while others may offer unfair deals. But just because there are some shady ones does not mean there aren’t companies that offer a good deal with moderate interest rates and repayment plan.
It is simply left to you to find them. The best way to do this is to check out different lenders before settling for one. If you visit www.billigeforbrukslån.no/sms-lån/, you can find out more on how to get the best mobile loans deal. However, the important thing is that you find a company that offers you a deal that you won’t have a problem with.
Make sure you take your time to go over the loan’s terms, interest rates, repayment plans, and so on. Properly doing your research will ensure you uncover any hidden charges. You wouldn’t want to get yourself in a financial pickle now, would you?
Consider Your Income and Monthly Obligations
Before applying for loans from your mobile phone, you have to be sure that you’ll be able to pay back. You need to consider your income. You also need to consider how much you can take out of it to service the loan you take.
The first step in determining your ability to pay back is finding out how much you’d get. Determine how much you want. Then, confirm if you are eligible to get that amount from the financial institute you want to borrow from.
Next, consider your payment plan. How much will you be expected to pay back monthly? Once you know this, consider your income. Finally, check your monthly obligations.
You may be earning a lot of money, but your monthly obligations may be taking a big chunk out of it. So, you have to make sure that you can fit your monthly obligations and your repayment into your income. Let’s give you an example.
Let’s say you are earning $3,000 and your monthly obligation is $2,700. In this case, it would be unwise to take a mobile loan where you’d be required to pay back $500 monthly. Doing so will only end up stressing you financially.
Getting a mobile loan is quick and convenient and can help you get out of a financial fix fast. But while there are so many upsides to it, it’s quite easy to fall prey to the downsides. Especially, if you do not know what to look out for or consider.
This article has discussed some important details that you can use to prevent unwanted situations when getting a mobile loan. So, the next time you want to apply for one, make sure you go through the steps and details we have discussed. Cheers to getting your loan without any hassle.