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What is true about SMS loans?

Is it really true that you can borrow money without any income or security? Can this be granted even when weighed down by other debts? Here we try to find out what a sms loan is and what is true and false respectively . for a critique

Many are the debates and opinions on whether sms are actually dangerous or a savior in distress when the economy is struggling.

SMS loan’s big question mark


Usually, all types of fast loans without security are bundled together to the concept of “sms loans”, regardless of size, arrangement or company and people who choose to borrow money in this way are often told that you can be at risk if you go to the bottom of it.

Many people believe that the risks are multiple and that they ignore other important aspects that can actually be an advantage for the borrower. Therefore, this article has been compiled to provide more clarity in getting help through a sms loan.

Definition of sms loans

Although the loans are many and relatively similar to each other, there is still no clear definition of what a sms loan really is, except that they are paid out quickly and can usually be applied for directly via the mobile phone.

Often you see lenders offering smaller amounts at a high effective interest rate without any UC on the person being taken in connection with the application. However, there are also different arrangements for sms loans today.

Loan despite debt at Good Finance?


If you have debts with Good Finance, can you really be granted a loan then? This is the ten-thousand-kroner issue and something that many wonder. The answer is usually no. Although many lenders offer people sms loans for smaller amounts and without major requirements, that doesn’t mean they are stupid. If it is borrowed from a bank, the requirements are often significantly higher and the person applying must have a minimum amount in annual income as well as guarantees and security that one is credible to repay.

Lenders do not want to take too much risk, even if you try to be nicer than the banks, but if a person is indebted over the ears, there is the risk that you will not get back your debts. Therefore, you can find it difficult to get a granted sms loan if you are known to Good Finance. However, it does not always have to be this way, but it is in most cases. However, many lenders give clear signs to people who only have payment notes and the same can apply to other types of private loans.


Everyone who applies for sms loans goes through a so-called credit report where information is given about the creditworthiness and credibility of the person concerned. However, a UC is not always the case, as there is a difference between a UC and a credit report at eg Creditsafe . This is the visibility of other banks. A UC is visible with other banks while a normal credit report does not become noticeable and this is why many people prefer a loan without UC, just because other banks will not create problems if they want to borrow from them in the future. A credit report consists of the following elements:

  • When an application is made, a credit report is sent out from the lender to the company providing the information
  • The information includes everything from creditworthiness to any debt, age, civil status and sometimes reviews and advice to the lender
  • This is to assess future payments and losses
  • Once a credit report has been taken, the company that issued the information usually sends a letter about this to the person applying for the loan

The difference between private loans and sms loans

The difference between private loans and sms loans

That both banks and lending institutions offer loans is not strange, but there are clear differences between the loans. Banks rarely pay out amounts under USD 20,000, as they simply do not win it. This also means that the collateral for the banks must be greater and fewer loans are granted. An elaborate plan and a significantly longer installment plan with bank loans are also required, although there are now sms lenders who have extended their maturities to about 1-2 years. Payments also vary when a private loan is paid out after at least 1-3 business days, even if the loan is signed with a bank ID.

The biggest difference is usually the interest rate. The cheapest sms loans can have an effective annual interest rate of 100 – 200% while a regular private loan has an interest rate of at least 4 – 5% but which, on the other hand, preferably exceeds 5-10%. However, it rarely exceeds the 20% mark. In smaller private loans, however, the interest rate can rise and rise to levels of about 30%, depending on creditworthiness and lenders. One of the highest effective interest rates charged in connection with sms loans has been 75,000%.

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