Trying to figure out if an Atlanta payday loan is right for you? Check out this guide before you apply.
If you’re short on cash and looking to borrow a small amount, you may be considering a payday loan. This guide takes you through the legality of Atlanta payday lending, as well as alternative options.
Are payday loans legal in Atlanta?
Georgia payday laws concern the lending of small loans in Atlanta. According to Georgia Codes 16-17-1 et seq. (crimes and offences), 7-3-14 et seq. (industrial loans) and 80 3-1.02(7) (company rules and regulations), providing payday loans to residents of this state is illegal. In 2004, the state passed a resolution that made payday lending a felony. These laws apply to both storefront and online lenders.
State laws place a small loan annual percentage rate (APR) cap of 16%. Since this is considerably lower than the triple digit APRs that payday lenders usually charge, getting legal payday loans in Atlanta, GA is not really possible.
What other borrowing options do I have in Atlanta?
- Installment loans. You can get an installment loan if you have poor credit history, provided you have a regular source of income. You’ll have to meet some other basic eligibility criteria as well. In order to repay the loan you need to make periodical payments according to a predetermined payment plan.
- Auto title loans. Getting an auto title loan requires that you use the title of your automobile as collateral to secure the loan. How much you can borrow largely depends on the value of your automobile. Since you’re providing security, you can apply with poor creditworthiness.
- Credit cards. If you’re planning on making a purchase, you could look into a credit card that has an introductory period with low or no-interest.
- Balance transfers. Looking into transferring your debt using a balance transfer credit card could be helpful if you’re struggling to make payments. This could get all of your outstanding balances into one place, potentially with a lower interest rate.
- Tribal loans. You may still have the option of getting a payday loan if you go through a tribal lender. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to abide by their own laws.
Installment loans you could apply for
Installment loans allow you to pay back your loan in fixed payments over a set period of time. There are lenders that offer this type of loan to borrowers with less-than-stellar credit, as long as they meet other eligibility criteria. Installment loans are similar to payday loans in that they have very high interest rates, and therefore risk to consider before you apply.
What if I can’t get a loan or credit card?
If traditional forms of credit haven’t worked out, or they aren’t right for you, there are some other options. Here are a few you can look into:
- Borrow from people you know. You may be able to request an advance from your employer, or get a loan from friends or family.
- Talk with community organizations. Non-profit financial cooperatives and community credit unions may have options for small-amount loans if you meet their eligibility criteria.
- Talk to your creditors. Ask about arranging a payment plan or getting more time.
- Local social services. Look into public services for assistance with heating costs, food and housing.
- Pick up side work. Looking for side jobs, selling things online with a service like eBay or LetGo, or signing up to drive with a company like Uber are some of the many ways people get extra cash when they’re in a bind. It’s a great alternative to getting a loan or credit card because there’s nothing to repay.