There will always be a time in our lives when we struggle financially. And when this happens, you are lucky if you have family and friends who can lend you some cash. But what if you don’t have anyone to count but you? There will be times that you would need cash right away and apply for bank loans is not a good option because of the long processing time.
One of the best ways to deal with this is by getting payday loans in GA. If you wonder what a payday loan is, then you have come to the right place. This article is definitely for you. Let this guide help you understand payday loans in Georgia.
What Is A Payday Loan?
A payday loan or sometimes called “cash advance” or “check advance loan” is a type of short-term money borrowing. The lender here extends high-interest credit and base it on the income and credit profile of the borrower. The principal of the payday loan will be taken from the next paycheck of the borrower.
You must remember that even though payday loans are an easy and fast solution to your financial problems, they also charge very high-interest rates. The Payday loans will charge the borrower with a high level of interest. They can be considered as predatory loans because they are known for their high interests that the borrowers have to pay.
Getting A Payday Loan For Emergency Cash
Lenders are usually small merchants that have a physical location or office but allow onsite and online credit applications and approval. In order for the borrower to complete the payday loan application, he or she must provide pay stubs or payslip from their employer that shows their current income level.
The loan principal is usually based on the percentage of the borrower’s short-term income. Sometimes, borrowers use their wages as collateral. In order to be approved, there are factors that the lender should consider that can influence the loan terms. This includes the credit score of the borrower as well as their credit history.
The Payday Loan Interest
Before you apply for a payday loan in Georgia, it is important that you first understand the payday loan interest. Most payday lenders charge borrowers with very high interest. Sometimes, it can be up to 500% of the annual percentage yield. Most of the states have issues laws that limit the interest charges of 35%. But there are payday lenders who fall under the exemptions which is why they can still charge very high interests.
Georgia Payday Loans
Payday lenders would require for you to produce a copy of your driver’s license as well as the information about your employment and bank accounts. In Georgia, the interest amount rate that a lender can charge the borrower is limited to 10% maximum on the loan of $3,000. The payday loans in Georgia are usually last for a couple of weeks or until your next paycheck. However, not all lenders can be trusted. Because of these possible loopholes, every borrower should be extra careful when choosing a lender.