Nowadays, people have the option to apply for a loan in the UK using their Smartphone. Getting cash by text comes with a wide range of comforts. These include ease to apply on the go, interest rate comparisons, quick processing, and more.
However, small text loans come with a certain amount of drawbacks. Some of them include risk to personal information, non-face-to-face communication with a customer service person, and technological discomforts.
Moreover, there are a large of do’s and don’ts that one must follow while applying for a loan on a Smartphone. Primarily, the do’s would include a trusted app installation source, understanding app permissions, and acceptance of OS updates.
On the other hand, the don’ts would include usage of public WiFi, avoidance of website security, and ignorance towards alternatives. Let us cover them in detail.
● Trusted App Installation Source
Many users opt for mobile loans by using an app, as they can view the information must faster as compared to a website. However, before installing any app from a source, users should check the legitimacy of the company, lender, or financial institution.
Anyone can do so through official UK government websites, or by using app review websites. Besides this, many customers write a review on the store. The best possible app installations stores would include Google Play and Apple’s App Store.
● Get a Deep Understanding of App Permissions
Almost all loan providing websites and apps require specific permissions to provide user-generated results and experiences. Therefore, it is crucial to read them carefully before accepting it.
Getting an idea of the privacy settings, and communication would also make you more comfortable with the app, or the website. Accepting the permissions after going through them thoroughly would always make you more confident.
Simultaneously, it would also allow you to deny unrequired permissions to your Smartphone. Besides this, going through the permission, privacy, and communication setting would let you limit them after successfully app installation, or website viewing.
● Build an Acceptance Towards Updates
Most apps on Google Play and Apple App Store come up with regular updates. Similarly, a Smartphone’s operating system demands continuous manufacturer upgrades. All of these should be done as soon as possible.
These updates mostly consist of security patches that help to prevent cyber attacks against apps and operating systems. Smartphone users that wish to continue with mobile loans should keep their devices updated to avoid security threats during the application process.
● Decide the Borrowing Amount
Before deciding the website, or the app, it is essential to decide the required borrowing amount. The adequate method of calculating it would include adding income sources and deducing the monthly expenses, bills, and subscriptions.
But before proceeding with this process, make sure to determine things that can get reduced or avoided. For example, you can stop an unused monthly subscription, or customize it for specific days only.
Similarly, you can change the shopping places to get household products at wholesale products. It would drastically decrease the overall expenses. After that, calculate the borrowing amount, and proceed with other details.
● Check Credit History
Before proceeding with a loan application, check your credit history. Lenders provide a higher APR to people with bad credit caused due to defaults, or CCJ’s. Doing a soft credit check ensures a low APR.
Besides this, also check lender options on different websites instead of proceeding with a single option. A low APR would make clearing the repayments easier for you.
● Usage of Public WiFi
Anyone that wants to carry on personal financial transactions should avoid using public WiFi, as it requires permission. Moreover, the user information gets stored in the public domain, even after the person leaves the station.
It is because the user can easily connect with the same permission without having to ask for it the next time. The cyber attacker makes use of this leniency to gain access to the personal information of the user by gaining admin access to the WiFi.
Therefore, the best practice while doing any financial transaction, especially loans, would include the usage of a personal and protected network. A user can add encryption, multifactor authentication, and other security protocols to strengthen their network and Smartphone security.
● Avoidance of Website Security
As mentioned earlier, security is very crucial during online transactions. Therefore, a mobile loan applicant must check for secure sites that carry an “https” domain, instead of “http”. The latter type of website has far better security than the former due to encryption.
Websites with “https” prevent cyber thieves from acquiring information as they forbid private data interception. Besides this, mobile loan applicants that want to pursue their application through a website must check the padlock in the address bar.
The padlock determines that the website communication is secure and encrypted. Smartphone loan applicants would feel far more comfortable by checking these minor details. Therefore, mobile loan applicants must not avoid both of these details during the application process.
● Ignorance Towards Alternatives
All loans come with interest rates depending on existing and past credit ratings. However, a person that requires instant money between the ranges of £500-£5,000 can avail of the option of zero percent purchase cards.
This type of credit card would provide temporary income solutions to the lender would the headache of paying additional interest rates. Ignoring such an alternate would become an unwise choice.
Besides this, a Smartphone loan seeks also has alternative options. These include finding a secondary job, borrowing money from friends, availing money from unemployment grants, and more.