Poor Credit Loans in Georgia (GA) - Know Your Options
Poor credit loans in Georgia, know all your options. If you have bad credit and wonder if you can still get loans in GA: you're not alone. Many Americans have a credit score below 601, which is considered poor credit. Traditional avenues of securing a loan from a bank are impossible without good credit.
Does this mean you are stuck being poor with no options to advance? The answer is "no," you can still find loans. What you'll have to do is look at some alternative lenders who are willing to take the risk.
Depending on how bad your credit actually is, you might be better off than you think. Here's how you can overcome the odds and get the money you need.
Know Your Credit Score
Find out exactly where you stand before you exclude yourself from standard loans. If your credit is in the high 500s, you might be able to rebuild that in just a few months or less. Check your score through a free credit report service or your free alotted annual report through the FTC.
Once you've got your report, look to see what type of negative accounts you have active. There are a number of ways to repair your credit score. If there is any incorrect or outdated information, you can contact the credit holder to get it deleted. Don't pay off any debts without getting it deleted from your account.
If you've never owned a credit card and have bad credit, then get yourself a secured credit card. These require a deposit to open up a credit limit. If you just use it to pay off a monthly bill and you're never late on payments, it will build your score fast.
Research Alternative Poor Credit Lenders in Georgia
Now that you know what your credit is and have started improving it, you can start looking at your options. There are plenty of bad credit lenders in Georgia, so you shouldn't settle for the first offer you see. Each lender is going to have their own set of rules and fees that fall outside of standard rates.
How much you're able to borrow, how fast you can pay it off, and how much interest is applied will vary greatly. They will be looking at your credit rating, no matter how much they might downplay the importance. It's a bit of advertising on their part to say that bad credit isn't a problem.
Terms and Conditions
Some lenders can get creative with their interest rates. Be that as it may, even most lenders' highest financing costs are a superior choice than a payday advance or a no-credit-check portion advance, both of which can carry APRs in abundance of 300%.
The state that the borrower resides is also important, as it does have an influence on the interest rates. Typically, the smaller the loan and the lower the credit rating, the higher the interest rate will be. This can mean anywhere from 36% to all the way up to 200% APR.
Payment schedules can also vary, depending on the amount borrowed. You can borrow as little as $1,000 and as much as $10,000. They are made on bi-weekly, rather than monthly payments. This is important to remember when considering how you much and how fast you can pay back your loan.
Where these types of loans shine is the ability to get approved for a loan the same day as signing up. There is an extremely underserved portion of America that often has no access to loans in Georgia due to their poor credit.
You can even check your credit score with these lenders without it having any negative impact. Using bad credit loans can also reward responsible borrowers in another way. It can actually improve their credit rating if they don't miss payments or pay late.
Shopping around for loans is easier than ever today thanks to the internet. While you should still check into your local options, such as banks and credit unions in your area, you can easily view the estimated loan terms of various online lenders in one place.
Best Types of Loans in Georgia for You
When searching for the loan that is right for your needs, you should know the pros and cons of each type. Basically, there are two types of loan categories: unsecured and secured.
There are unsecured personal loans and auto loans that can be acquired only with high credit ratings. Unsecured loans in Georgia for bad credit are offered with higher interest rates to make up for the risk. These types of loans are generally harder to qualify for and shouldn't be the first choice.
A secured personal loan requires the borrower to provide the lender with collateral. This collateral acts as a security in case they are unable to repay the loan. The collateral does offer you a significantly lower interest rate because the risk is lower. Attaining a secured personal loan from a reputable lender is not difficult. As long as you continue making repayments and avoid default, the asset placed in collateral will not be taken from your possession.
On the other end of the spectrum, secured loans are provided in the place of collateral. Property or other valuable assets help leverage a borrower's credit and can allow them access to higher value loans and lower interest rates. The catch is obviously that your assets can be repossessed if you fail to make your payments.
A more preferred form of securing a loan is through the credit of another signer. Their credit rating will be used to secure lower interest rates and more money.
Practice Responsible Borrowing
No matter which road you go down, getting loans in Georgia with bad credit is all about personal responsibility. If you are getting your feet back on the ground and are growing your financial security, a loan may be the perfect push you need.
Know your credit score and what it will take to repair it. The time it takes to achieve good credit could mean the difference between paying 20% APR on a loan and 200%. Do your research on Poor Credit.org to understand everything about personal loans and credit ratings.
Write down your goals and map out your plans and you can achieve them through hard work.