Top 2 Alternatives to Costly Online Loans in GA
Borrowing money comes at a significant cost. This means that you must shell out money for getting money. While this is true for money loans, the cost need not be necessarily huge. While looking for online loans in GA, it is now easier to control the borrowing cost by managing the processing fees as well as the interest rate. This is because of the state’s regulatory actions that now controls the cash advances. You just need to be shrewdly selective about the loan type you apply for.
Regulations for Offline or Online Loans in GA
Of all loans, payday loans charging whooping rates of interest are now illegal in the state of GA. This is as per the new rule by the Georgia Department of Law Consumer Protection Unit. These short-term lenders are now regulated atop a tough legal terrain. While the regulation wants to make emergency cash available, it also wishes to end the short-term money lending under the excuse of consumer protection.
As per the new regulations, a lender whose operational reach is within GA cannot charge an interest of over 10% on money loans under $3,000. However, this is not strictly applicable to the lenders of online loans in GA. This is perhaps the reason why there are thousands of Google searches on payday loans GA even today.
Further, lenders need to have a valid license for depositing checks. The state also has set a minimum fee for encashing a post-dated check. Keeping these rules in mind, it is best to assess a loan offer prior to accepting it.
Options of More Affordable Online Loans in GA
A debt with a high interest rate is a burden. This is regardless whether you have already obtained or are going to get it, as it is the only option at present. The good news is that there are a few less-expensive options to obtain the money you require. They come with reduced borrowing cost, which means that the cost helps you in lowering your debt burden. Here are such options:
Now being available online, personal loans are usually more affordable than title loans, payday loans, and credit card loans. This is because they have a lower rate of interest, which tends to remain fixed throughout the loan term. Thus, you know what you will be paying; there shall be no surprise payments.
Online lenders such as ZippyLoan charge zero processing fees. This makes a personal loan even more affordable. By getting a lump-sum amount through such a loan, you can pay off all your liabilities. You repay it through a monthly installment, which spans over a term of three or five years.
To qualify for it, you need to have sufficient income. Credit score is also an important factor but lenders such as ZippyLoan offers a personal loan without a credit check. This might make you pay a bit more interest than the one with a good credit check but it is still competitive, not exorbitant.
There is no need of any collateral to get a personal loan. You only need to assure or promise for repayment.
Person-to-Person (P2P) Loans
This is also a type of personal loan in which you borrow from a private individual instead of a credit union or bank. The individuals can be relatives, friends, or even total strangers who are lending via a Web site such as ZippyLoan and VivaLoan.
These online loans in GA make it simpler to qualify for them even if you have a low credit score. They could be less risky than borrowing from friends and family, as there is always a risk of losing the relationship in the case of latter. One way to make it less risky is to make a written agreement so that there is no conflict later.
Increasing Your Chances of Approval
Applying for money loans online does not necessarily attract approval. Although a credit check may not be a major criterion for approval, the online lenders need assurance that they will get their money back. Here are some tips for convincing the online lenders and increasing the chance of approval:
- Go for smaller loan amounts, as an application of a bigger amount is likely to decline regardless of what is the credit score.
- Show that you have a steady source of income since at least three months. This is a strong point in your favor.
- Consider giving a collateral in case there is insufficient income, which can be an asset. This can easily convince the lender that he will get his payment even if you default. An asset can be jewelry, home, car, shares, or a bike.
Consider sharing the repayment responsibility with a good partner, who acts as a co-signer for the lender who does not ignore a good credit score.