19, Nov, 2020
We discuss and list different myths about quick loans and explain them.

We discuss and list different myths about quick loans and explain them.


With a quick loan, you can get a supplement to the household fund paid out in just a few hours in case you are in a financially difficult situation. The type of loan can thus serve as a kind of lifeline. You also avoid having to seek help from those close to you.

However, many people still feel hesitant about applying for quick loans. One reason is that, not least in the media reporting, the loan type is always presented in a very negative way. Those who follow the reporting in the daily press and on the TV news can be tempted to believe that fast loans are a safe path to major financial problems and that lenders are usually rogue players.

Here we go through three common myths / misconceptions that deserve to be analyzed in detail. It is about the costs, the risk of being cheated and the consequences of late payment.

Quick loans are always very expensive

Quick loans are always very expensive

A common word in news articles about fast loans is “useless”. The idea of ​​using this word is to put a very negative stamp on the whole phenomenon, and it is the costs that you focus on. Indeed, Ocker is a crime and by linking the concept to fast loans, the loan form will of course be very bad days.

Clearly, quick loans are expensive compared to other types of loans. However, it is not very accurate to compare, for example, a mortgage with a fast loan. For example, mortgages are at very high amounts while fast loans are at very low rates. Other differences are maturities, the occurrence of collateral, the handling costs in relation to the loan amounts and more.

The major reason why fast loans are the most expensive form of loan is that the lender’s time, risk and return goals must be covered by a few repayments. For large private loans and mortgages, these costs can be spread over several years, but for fast loans, they must be covered within just a few months. This means that interest rates and other borrowing costs are high in percentage terms.

From this perspective, quick loans should not automatically be considered expensive. It all depends on what you compare to. In addition, it should of course be said that there are of course big differences between different lenders just as there are differences between lenders in private loans, mortgages, credit cards and more.

Example: Many fast-loan companies today offer so-called annual loans with nominal interest rates of around 30% completely without fees. A loan of SEK 5000, for example, gives (somewhat simplified) a total cost of SEK 1500 for twelve months. If a full repayment is made within just one or a few months, the cost will instead be only around SEK 100-200, which gives a cost in interest of 2-4%.

Good to know: Some fast loan companies even offer interest-free loans. For these, there is usually some cost in the form of fees, but the phenomenon shows that fast loans do not have to be very expensive. It’s just that you choose with care.

There is a big risk of being fooled


For some reason, the concept of quick loans / sms loans has become a synonym for scam. Even in this context, the purpose is to put the loan type into a very bad day.

Fast loan companies are not fooled. It is simply not allowed to mislead or present incorrect information about loans. This puts the very extensive regulations on lending very big obstacles.

That you can feel cheated is a whole other thing. It is something that is not specific to fast loans. As soon as there is money involved, there is the risk that you may experience that you have got a worse deal than you initially thought. The keyword here is “believed”.

You do believe in the church, as it is so popularly called. When it comes to applying for a fast loan, all the rules and conditions and costs are carefully presented. Just read inside to get a concrete picture of what kind of offer you are applying for.

If you do not pay on time, the case is sent to Kronofogden directly


It is entirely possible for a lender to pass on a case to the Kronofogden in principle immediately after the due date. However, there is no business advantage for a lender to do so. Those who run fast loan companies have no interest in ruining your finances.

The usual procedure for late payment is that you first receive a reminder via sms and / or e-mail. This communication often specifies exactly what to do to avoid additional costs and inconveniences. If you continue to be late with payment, you will usually receive another reminder. Only then does the lender move on to the next step, which is then debt collection.

To think about before taking a quick loan


With this article we hope that you have got a slightly more nuanced picture of the myths / misconceptions that the media is happy to spread about fast loans.

Finally, it may be wise to remind you of the basic rules you should follow to avoid the problem of quick loans as much as possible.

  • Ask yourself if you really need to borrow? Is the situation really acute? Are there any other possibilities?
  • If you choose to borrow, check all the terms and conditions specifically regarding how and when repayment should be made. Also do an analysis of the price of the loan. Of course, if you think it is too high, you should not borrow. Probably there is a cheaper loan to take out.

Also, be sure not to sign a loan agreement unless you are sure of being able to pay back on time.

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