How your Android phone can help get you quick loans
Loans are considered lifesavers in a time of tribulation, but with so much red tape in the application process, some people prefer not to deal with the misgivings of getting an approval.
It is disheartening if you’re already at your wit’s end, behind on your bills or hindered in your business plans, but a daunting rejection can present such a situation that you never want to set foot in a financial institution for a loan ever again.
Technological advancements have pushed mobile banking, transfers, payments and loans into its financial peak since the first mobile loan apps were launched, which presents a financial breakthrough.
It is not surprising why most quick loan apps have only made their downloads available to Android users. That is such the case in Africa, where 76 percent of the population has access to a mobile phone subscription and M-Pesa, the country’s prestigious mobile money app. Quick loans through the service has helped nearly 200,000 families get the extra cash they need.
Quick loans a rising trend
Google Play store data reflects that the number of quick loan apps are on the rise internationally, where financial assistance is provided in a matter of minutes of hours, depending on the app.
With over 2 billion active Android devices monthly as of June 2018, these apps are lenient on things such as credit checks and not requiring collateral, which may or may not be a requirement at other lending institutions.
Salaried or self-employed individuals can consider it a breeze getting that loan approved, with some quick loan apps evaluating the borrower’s credibility through Facebook.
Editor Note: Quick loans are actually HARDER to get if you’re a self-employed business owner, especially in North America because your independent contractor 1099-MISC income is often inconsistent, resulting in these lenders requiring collateral or they just won’t do business with you at all. Sadly, if you have regular W-2 income, whether it’s salaried or hourly, you get preferential treatment from these institutions, especially the quick loan institutions. This comes from personal experience of dealing with all kinds of financial institutions when it comes to loans.
Additionally, this evaluation of one’s borrowing credibility through social media…it simply just doesn’t work. It’s an invasion of privacy and that is what they’re doing in portions of the European Union and eastern Asia. It’s a poor excuse to prevent people from attaining a loan.
Quick loan app features
The key features of a loan lending app is based on five essential attributes: usability, user-friendliness, minimal or no paperwork, the capability of pulling a credit report and security.
The app should present user-friendly functions which present the loan requirements following the input of the borrower’s information. It is also helpful if there is very little to no paperwork to fill out.
The quick loan provider should have the capability to pull an individual’s credit history. In some parts of the world, it’s called a CIBIL report. In North America, depending on the lender, they will pull a credit report through one of three major credit bureaus — Equifax, Experian and TransUnion. A rarely used fourth bureau, Innovis, is utilized for some retail credit cards.
For a better look at your credit history and you live in the United States, you can receive a free copy of your credit history from all three widely-used credit bureaus.
Caveat emptor: borrower beware
A common rule to follow is caveat emptor — “may he beware” for those who don’t understand Latin — be careful who you go through, because it is incredibly vital that you not fall prey to the industry’s shady, rotten eggs and their deceptive practices which have led to class action lawsuits.
Such practices were exposed in a 2014 Federal district court case in Missouri brought forth by the Consumer Financial Protection Bureau and the Federal Trade Commission against two individuals and 20 corporate entities controlled by them which offered quick loans online.
After over four years, a lawsuit was settled in July which alleged that Richard Moseley Sr. and Richard Moseley Jr., two other individuals and the group of loan companies they owned under the Hydra Group, which engaged in unlawful payday lending schemes and often were involved in making these loans. Additionally, the Moseleys and Hydra Group violated the Racketeer Influenced and Corrupt Organizations Act as well as the Truth in Lending Act.
Borrowers who were duped by Hydra Group’s loan companies may be eligible for some recoveries from the Bureau’s $69.6 million settlement and the FTC’s $1.3 billion settlement, both being split up as a part of the class action judgement.
bcfp_hydra_stipulated-final-judgment-order_2018-08Finding the best app
With the available quick loan apps, loan allowances, low interest rates and hassle-free applications are key, but first and foremost, accountability should be top priority.
It is vital to do your research. If you can’t find online reviews for the loan provider, don’t patronize their business.
A loan provider that provides excellent customer support is of high importance as well, because you should have that extra layer of assurance from the application process to loan payments going forward. This will also be of some help if you’re falling on hard times and can only make a partial payment toward your monthly loan installment.
Editor Note: There was a section about the speed of quick loan apps, but let’s be honest: quicker is not always better. Some of these apps claim fast applications with nearly instant approval, but again — caveat emptor — they are most likely scams. If they don’t reply to you instantly, it’s a scam.
Also keep in mind, even if you have perfect credit, the provider can still deny you a loan for a variety of reasons, usually due to not enough credit history established or simply because they have a quota to make in loan denials.
Author Bio: Jamie Mervin, a certified financial planner, author and blogger, enjoys sharing tips on personal finance, business and entrepreneurship. She is currently working for My Quick Loans, which offers fast loans online in the UK including Christmas loans, Payday loans, Late Night loans, Weekday loans, Student Short Term Payday loans and many more.
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