We can all agree that technological progress is moving at a furious pace. Loans using the mobile phone, also called mobile loans, were introduced in Sweden in 2006 and the new phenomenon was quickly named SMS loan. But today, the loan form has almost more names than the number of trees found in the Amazon rainforest – and one of all these names is precisely the mobile loan.
A combination of the spread of the Internet and the fact that each and every person today has a smartphone in their pocket, has led lenders to extend their methods of offering mobile loans, through various Internet-based solutions. Therefore, you would think that we at Astro Finance pass on mobile loans, because you as a visitor can easily apply for a private loan using your mobile, right here on the site. But there would be some misapplication of the term mobile loan since the term covers more than that.
What is typical for mobile loans?
- A mobile loan is a smaller loan, generally between $ 1,000 – 25,000.
- Quick credit check without UC with answers directly.
- Quick payments to selected banks.
- High effective interest rate.
- Short credit period.
Why is mobile loan without UC?
There is no requirement that lenders must use the credit information company UC for their credit check of the mobile loan. However, a credit check must always be done by law before a loan can be granted.
One reason why many people apply for mobile loans without UC is because the credit reporting companies do not share the information between themselves. Which means, for example, that the information company Lite Lender does not share its information with UC and vice versa.
If you are looking for a smaller mobile loan, as a temporary solution, you may not want the loan to affect your creditworthiness for a future mortgage loan.
Mobile loan – UC should not decide
Taking a mobile loan just so it doesn’t leave any traces at UC is an expensive solution in itself. The lack of information through UC should not be the deciding factor for your loan decision. In such cases, it is better to try to find the root of their financial concerns, whether it is about increasing their income or lowering their unnecessary expenses. It always pays off in the long run.
Credit in mobile – a form of mobile loan
Some of all these lenders offering mobile loans have also started with some form of credit in the mobile. By offering an account credit to their customers, customers can borrow up to their credit limit several times, without the need for a new credit check. The solution works like a credit card without the need for a physical card.
It can all sound very smooth and simple, which is also its disadvantage. By always having access to “extra money”, every day of the week, you can easily use the credit and thus pay expensive fees and interest. Should you take out a new loan, it is a good idea to have a clear plan for the loan, and not waste it on unnecessary consumption.
How does a loan with Astro Finance differ against a mobile loan?
Now that you know more about what mobile loan is for something, it’s time to explain the difference between a mobile loan and a loan you can apply for with the help of Astro Finance. When you use our free service here at Astro Finance you can compare- and get up to 35 different loan offers with significantly lower interest rates than mobile loans.
Although you compare many different banks and lenders, only one credit report is taken on you via UC. In addition, you get access to all loan offers within 24 hours on weekends.
Unlike mobile loans, you can borrow between $ 5,000 and 600,000 through Astro Finance, with a loan term between 1 and 15 years. Below you can see a table that shows clear differences between mobile loans and loans via Astro Finance:
|Mobile Banking||Astro Finance|
|Loan amount (lowest)||1 000 USD||5 000 USD|
|Loan amount (maximum)||25 000 USD||600 000 USD|
|Loan time (shortest)||30 days||1 year|
|Loan time (longest)||1 year||15 years|
|Effective interest rate (lowest)||about 29%||3.01%|
|Effective interest rate (maximum)||about 60,000%||22.59%|
Keep in mind that a loan application through Astro Finance is not binding and that you can always redeem your loan early!