Are you thinking about getting a payday loan in Georgia? Here’s the information you need.
Payday lending is illegal in Georgia, as per state laws 16-17-1 et seq. (surrounding crimes and offenses), 7-3-14 et seq. (surrounding industrial loans) and 80 3-1.02(7) (surrounding company rules and regulations). This is due to the high interest rates and the frequency of people defaulting on their loans.
While state laws have prohibited payday lending in this state for over a century, payday loan companies in Georgia continued to operate freely until a 2004 legislation made payday lending a felony. Tribal Internet lender Western Sky was sued under this law in 2013.
Despite payday loans no longer being legal, there are still ways to get quick cash in Georgia should you find yourself in need. Keep in mind that if you choose to apply for any kind of loan or line of credit, it’s very important read all the paperwork (including all the fine print) before signing anything. It’s also a good idea to have a solid plan to pay back your loan, so you don’t find yourself needing to borrow more money to repay debt. Go through this guide to find out about your alternatives.
The hidden consequences of payday loans
Installment loans you can get
You can consider getting an installment loan if you have poor or bad creditworthiness. As the name suggests, you have to repay this loan in installments over a set time period. Keep in mind that the interest rates will be high so you face similar risks to those of getting a payday loan.
Auto title loans you can get
If you have a car or a motorcycle with a clear title you can consider pawning it to get some money. In this case, the title of your vehicle works in securing the loan. Since you’re providing collateral, good creditworthiness is not a requirement. Title loans also carry very high interest and if you default on your loan, you will lose your vehicle. This is why auto title loans are illegal in many states.
What other options do you have for a loan in Georgia?
While getting a payday loan in Georgia is not possible, you can think about credit in other forms. Some of your options include:
- Personal loans. To apply for a Georgia personal loan through a standalone lender or a bank you should ideally have fair to good creditworthiness, but you have some options even if you don’t. The interest such loans attract is typically lower than what you’d have to pay towards an installment loan or an auto title loan, and the payments may be more flexible.
- Apply for a credit card. Whether you have good or bad creditworthiness, there is a huge selection of credit cards worth considering if you need extra money. Credit cards also have more reasonable payments and lower interest rates.
- Payday loans from other states. If you’re in Georgia temporarily but are normally a resident of a state where payday loans are legal, you can consider applying for an online payday loan. To do this you’ll have to provide documented evidence of your residence in another state. Also make sure the lender is backed by the OLA or similar.
- Pick up side work. Looking for side jobs, selling things online, 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 is nothing to repay.
What are the typical costs of a loan in Georgia?
No matter what kind of credit you get, you will have to repay the amount you borrow along with the interest it attracts and applicable fees. Several factors impact the interest you have to pay. These include your creditworthiness, the amount you wish to borrow and the desired loan term, as well as the lender you choose. The type of credit you seek also affects the interest. For example, a credit card cash advance will typically attract higher interest than a personal loan.
The fees you have to pay depend on the type of credit you’re seeking as well as the lender you work with. Some of the fees you may have to pay include application fees, loan disbursement fees, loan settlement fees, late payment fees, and early repayment fees.
What states can I apply for a payday loan in?
Have any more questions about Georgia payday loans?
I’m looking for bad credit loans in Georgia. What are my options?
If you have poor or bad creditworthiness, you can consider applying for an installment loan or an auto title pawn.
Can I get a payday loan or a cash advance in Georgia if I’m not a resident of this state?
If your identification documents show you to be a resident of a state other than Georgia, and if payday loans are legal in your home state, you can consider applying for a payday loan online (through a payday lender in your home state).
What details do I have to provide to get a short-term loan in Georgia?
You’ll have to provide your name and contact information, a valid form of ID, and employment and income information.