What are text loans?

Person sitting in lounge looking at her phone and smiling

Text loans are short-term, high-interest loans that are similar to payday loans. The difference is that borrowers can take out text loans through their mobile phones simply by texting the lender. Because text loans from direct lenders are acquired by a message exchange, they are seen as quick, handy, and convenient.

Although we don’t offer text loans at Moneyboat, our short-term loan applications are 100% online and can be accessed through both desktop and mobile devices. Once approved, your loan will then be verified by email and text. A text loan alternative from Moneyboat gives you the flexibility to borrow between £250 - £800 with the same high level of service and authorisation offered by a text loan.

What are UK text payday loans?

Mobile loans in the UK from direct lenders are an attractive option for those seeking emergency credit. The way they work is that a customer, often one who has applied and received approval from the lender in the past, would send a text message to the lender and request a loan this way.

Text loans appear easy; however, we would always advise that customers compare all the relevant UK loan options available to them to make sure they are making the best and most informed decision. We also have a guide on what to consider before taking out a loan which you might find useful.

Applying for a text loan from a direct lender may seem simple, however you’ll want to ensure that the entire package is right for your circumstances. UK text loan lenders may offer mini text loans from as little as £100. Small amounts of £100, £150 or £200 are the most common amounts offered via a text loan, so the name mini loans or mini text loans is sometimes used. No matter the offer at hand, affordability and responsible borrowing is key.

You’ll need to ensure you’re aware of the repayment terms before applying, and that you’re going to be equipped with the necessary funds to make the payments.

What are the benefits and drawbacks of text loans?

Unexpected emergencies arise from time to time, and for those without an emergency fund, it can be hard to rectify the situation. Quick, easy text loans can therefore be a convenient option for those who have the capability to pay them back (including the additional interest fees).

However, when text loans are given to those without the necessary means, they can cause more problems than they solve. And, with mounting interest fees, the borrower may spiral further into financial trouble.

Can I get a text loan with bad credit?

Often, text loans are offered to return customers who prove a solid term of repayments on their previous loans. Applying for a loan, whether by text or online, is a risk on both the side of the lender as well as the customer, so often there will be strong criteria involved.

Getting approved for a text loan with bad credit is wholly dependent on the lenders’ discretion. Be wary of lenders offering instant text loans with no credit check, as this is against FCA regulations proving that the lender may not actually be authorised.

So, due to thorough regulations, it may be difficult to get a text loan if:

  • You have no repayment history with the lender/ you do not have a track record of timely loan repayments

  • You’re unemployed, or you have a negative credit history

At Moneyboat, we do offer loans to customers with low credit scores, however approval will be based upon individual circumstances and affordability.

Although not considered text loans in the most direct sense, as direct lenders authorised and regulated by the FCA, we offer a text loan alternative which is just as straightforward and clear for our customers. Talk to us today to learn more about our short term loans. We offer a loan which is quick and flexible, with the money sometime arriving on the same day that you apply.

Before you go, why not check out our guide: are payday loans the best way to get cash fast? This way, you can see whether a loan is right for your personal situation.

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Representative Example: Borrow £400 for 4 months, 4 monthly repayments of £149.37. Total repayment £597.48, interest rate p.a. (fixed) 255.5%. Representative APR 939.5%.Compare Moneyboat loans.

Warning: Late repayments can cause you serious money problems. For help, go to www.moneyhelper.org.uk.