When applying for a micro-loan, it is a bit different what applies when it comes to application code. Some lending institutions use these, while others do not care at all.
One trend that one has been able to see in recent years is that more and more lenders are leaving this with an application code. A few years ago it was more common for them to use code than not, but now it is the opposite.
Obtaining the application code that is sometimes required costs money. The price is normally between 20 – 50 SEK. This cost is then normally added to your mobile bill. The cost is also deducted directly when you order an application code which means that it does not matter if you then apply for a loan or not. The money is deducted even if you apply for a loan using the application code which you are then denied.
This means that it is very important that you do not obtain any application codes if you do not intend to borrow money or are not sure if an application will be approved. An application code that is not used is about as useful as throwing money directly into the lake. Only the credit institutions make money.
More expensive with application code?
Now we have only addressed the worse aspects with the loan institutions that use the application code. But it is not that there must be anything negative with an application code that costs money. There is nothing to say that it is more expensive to take such a loan.
All in all, if you are sure that you are approved for a loan, you only need to check which loan costs the most when you decide. If, instead, you do not really know whether your application will be reviewed or not, you should really consider which one will be the cheapest.
In the comparisons we have here on the site we have always counted on a possible application code in the price. It is only if you have several different ways to apply for a loan where an application code is used and a way that means that one is not used that we did not expect in the price. We always expect the lowest possible price.
Something you should watch out for when you visit the lenders’ own websites is whether or not they have included the cost of the application code in their total price.
How to get an application code?
Since the amount is not directly linked to the loan itself, but only the application process, there are lenders who choose to hide this cost in their price lists. If they use an application code, you should check whether it is included or not, as this can clearly affect which ones are the cheapest.
Obtaining an application code is very easy. It really only requires that you send an SMS to the loan institutions which will then respond by sending the code to you. Exactly what should be written in the SMS you send to the credit institutions is a bit different and this information is always easily found on the respective bank’s website.