Are you looking for personal loans in Georgia? 

A personal loan can be the solution to lots of life’s financial problems. A loan can help you finally settle old debts or help you build a bright future. But, should you get a personal loan? 

In this article, we’ll look at the types of personal loans available across the state of Georgia and give you the information you need to make the best decision for you and your budget. Read on to get the info you need on loans in Georgia! 

Georgia: The Basics 

Georgia is a state in the southeastern United States, located along the southern edge of the Atlantic Coast.  The state was established as the last of England’s original Thirteen Colonies in 1732. Georgia became the 4th US state to ratify the Constitution in 1788.    

Georgia is home to 10.7 million residents. It is the 8th most populated state in America.

Largest Cities in GA 

  • 1. Atlanta 498,715
  • 2. Columbus 206,922
  • 3. Augusta 202,081
  • 4. Macon Bibb 157,346
  • 5. Savannah 147,780
  • 6. Athens 127,315
  • 7. Sandy Springs 108,080
  • 8. South Fulton 107,436
  • 9. Roswell 92,833
  • 10. Johns Creek  82,453

Georgia has a strong economy that supports both agriculture and industry. Even though it is known as “The Peach State,” Georgia is the leading producer of pecans globally (but the peaches are great too!). The state has also seen enormous growth in business diversity throughout the past few decades. The metro area of Atlanta—Georgia’s capital and largest city—is headquarters to more than a dozen Fortune 500 companies, including Coca-Cola, Home Depot, and Delta Airlines.

What is a Personal Loan? 

A personal loan is a loan you use for whatever expenses you cover. Personal loans are installment loans that are repaid through regular payments (installments) until the debt is clear. 

There are lots of reasons to take out a personal loan. People take out personal loans in Georgia to consolidate debt, make home improvements or pay off high-interest credit card debt.

Interest: The Cost of a Personal Loan 

Almost every installment loan available charges interest. Simply put, interest is the money paid for the privilege of borrowing the lender’s money. 

How Interest Works 

Interest affects the overall price you pay on your loan.

Let’s say you borrow $100 with a 5% interest rate. You will pay $105 back to the lender you borrowed from by the end of the loan term. The lender gets their money back and makes $5 in profit.

The interest on a loan is added to the principal amount. Interest payments are divided evenly across your monthly payments.

Interest rates are one of the most important factors when considering which loan to apply for. Though interest rates will vary from one loan to the next, they affect many aspects of the repayment, including how much you borrow and how long it takes to repay. Before borrowing, it is essential to know this rate’s implications on the final amount owed and your monthly payment. That way, you can plan accordingly and avoid adding on any unnecessary debt. 

Types of Personal Loans 

Personal loans in Georgia come in two forms—secured and unsecured. 

Secured Personal Loans 

A secured loan is a loan backed by collateral. Collateral is real property—like a home, car, or savings account that you own. Mortgages and car loans are two of the most common secured loans. 

Unsecured Personal Loans

An unsecured loan does not require collateral. Instead, unsecured loan approval lies heavily on your creditworthiness—your overall ability to repay your debt responsibly. Lines of credit and student loans are two types of unsecured loans. 

Secured Loans vs. Unsecured Loans: Which is Best? 

In addition to collateral, secured and unsecured loans differ in their total costs. For example, an unsecured loan will have higher interest rates than a secured loan. Without collateral to back them, unsecured loans carry a higher risk for the lender, resulting in higher interest rates, fees, and monthly payments.  

While a secured loan can sometimes be less expensive, you carry most of the risk. If you default on this personal loan, the lender will take your collateral. Some people feel that a loan is not worth risking the possibility of losing their property. 

Secured and unsecured loans have both advantages and disadvantages. There are ideal situations for either type of loan, and they all depend on your financial need and ability to repay the loan. 

Personal Loans and Your Credit Score

In most cases, your current financial status determines what kind of loans are available to you. Your credit score is a tool that helps lenders evaluate that status. 

What is a Credit Score? 

A credit score is a number that illustrates your creditworthiness. This three-digit number can tell a potential lender how likely you will pay back your personal loan. 

  • 300–499 Very Bad Credit
  • 500–600 Bad Credit
  • 601–660 Fair Credit 
  • 661–780 Good Credit 
  • 781–850 Excellent Credit

The higher your credit score is the lower your risk to lenders. That’s why “having good credit” will mean more loans available to you with low-interest rates and longer loan terms. On the other hand, people with bad credit have shorter loan terms and high-interest rates. 

Where Does Your Credit Score Come From? 

Credit scores come from credit bureaus—data collection agencies that analyze consumer buying behavior. In their credit reports, the bureaus examine your behavior in these five areas: 

Payment History

Payment history is the record of delinquent payments to your creditors. Your payment history has the most significant impact on your credit score.  

Credit Utilization

The percentage of your available credit you are currently using (e.g., credit card balances)—the lower your credit utilization, the higher your credit score. 

Credit History 

The length of time you have maintained a line of credit 

New Credit 

Hard inquiries into your credit history measure your attempts at credit. Every hard inquiry will slightly drop your credit score.

Credit Mix 

The variety of secured and unsecured credit you successfully manage. Your credit mix has the least amount of influence on your credit score. 

TransUnion, Equifax, and Experian are the three major credit bureaus that report on your credit. Since they are three separate bureaus, they each create a separate credit report and credit score for you. Be sure to check your credit report often; there may be errors on your report that can hurt your credit score. 

How to Take Out a Personal Loan

Before you take out a personal loan, the first step is deciding whether or not a loan is right for you. You must get a personal loan with affordable monthly payments you can make on time. Although the risks vary between lenders and borrowers, there are personal loans for everyone. 

Check Your Credit

Be sure to check your credit score and review your information to ensure no errors on your credit report. Federal law requires that your credit score be made available to you from any credit bureaus at any time. 

Apply for Pre Qualification

Once you know your credit score, you can select what types of loans are available and apply for pre qualification. In the pre qualification process, a lender will look at your information and tell you what loans you could get, along with the potential loan terms. While pre qualification doesn’t necessarily guarantee loan or credit approval, it can help you narrow down your choices. 

Submit a Formal Application

If any prequalified loan terms look good to you, you can submit a formal application with the lender. 

While the prequalification process requires basic personal information, applications for personal loans will require some more details about you. Requirements vary across different lenders, but on the whole, be ready to present any or all of the following:  

  • Identification  (Driver’s Licence or State ID #)
  • Social security number (provides access to financial history) 
  • Income verification (usually in the form of paystubs or deposit records) 
  • The monthly cost of living expenses (to determine if you can afford the loan) 
  • Bank account information 

Remember that application for personal loans requires hard inquiries into your credit history, which in turn will hurt your credit score. So when you apply for personal loans, consider limiting your application to just a few. Again, prequalification can help you make the best choices.   

Receive Loan Approval 

After you submit your installment loan application, the lender will review it. They will use your financial information to decide whether to approve your loan. If you receive loan approval, the lender will send you the loan agreement that will detail the maximum loan amount, interest rate, and the amount needed for your monthly payments. Once you sign and return the loan agreement, you will receive a check or transfer the loan amount to your bank account. 

Online Personal Loans 

Purchasing a personal loan online is easier than ever, and many people do it. Online shoppers are more likely to say they completely understand the process, rates, and terms of their loan application. And if you need cash fast, online lenders typically drop your funds in your bank account within a day.

Options for Personal Loans in GA

There are many personal loan options available. However, not all personal loans are created equal. It’s crucial that your personal loan is a debt that you can handle with regular monthly payments. 

Here are some available lenders that can help you with an installment loan. 

Banks

Branch-based banks offer a personal loan option in a variety of formats. If you are a customer at the bank, funds from the loan could be deposited directly into your bank account, giving you more immediate access to them.

Credit Union

Think of a credit union like a “members only bank.” They are nonprofit financial institutions that serve particular groups. There are credit unions for people in labor unions, craft professionals, and government employees at all levels—local, state, and federal. Credit unions are less concerned about making profits and more concerned about providing the best options for their members. 

Private Lenders 

Private lenders operate heavily online and issue loans directly to borrowers. Many specialize in a particular type of loan or borrower. For example, some lenders deal exclusively with credit card debt. You can apply for online loans at any time, and if you’re approved, your money goes to your bank account. 

Payday Loans

The term “payday loans” describes high-interest, short-term loans typically due on the borrower’s next paycheck. The average annual percentage rate (APR) for these loans is usually three times higher or more than a credit card. There are different types of payday loans, including online payday loans and traditional storefront cash advance stores.

How Payday Loans Work

A consumer will go to a payday loan store and take out a cash loan. The amount of money available ranges from $50 to $500, depending on how much you can afford to repay. Payday lenders will require borrowers to provide proof of employment and essential identification before granting them the loan. They will also look at your bank statements to verify your income. 

Payday loan approval is relatively straightforward; credit history is typically not a problem. For most payday loan applications, you only need to be 18 years of age or older and have a bank account that has been open for six months or more.

Once the loan agreement goes back to the payday lender, they distribute the loan amount. 

Online Payday Loans

Online payday loans are becoming very popular. Instead of going to a physical payday loan store, you can submit a loan application electronically. The payday lender will then approve or reject the application within seconds and transfer the funds into your bank account through direct deposit. 

Payday Loan Disadvantages

While payday loans are convenient, they can be costly. If you don’t repay the loan by your next paycheck, your payday lender will roll over the loan into a new payday loan with more interest payments and fees added to it. 

Payday loans are an extremely risky and expensive form of funding. Don’t be fooled by the speed and convenience. These loans can lead to a cycle of debt that’s difficult and costly to escape. 

Peer-to-Peer (P2P) Loans 

A P2P loan is a personal loan that independent investors instead of financial institutions facilitate. The main difference between P2P loans and an installment loan from a bank or credit union lies in the negotiation of the loan.

A P2P loan starts with the borrower visiting an online P2P platform and setting an interest rate they are willing to pay for an installment loan. The offers are published to other investors on the platform (or “peers”), who can look into your credit history.

Because P2P investors can pool funding and share risk, people with less-than-great credit are more likely to get loan approval with them than with traditional financial institutions. 

Get Personal Loans in Georgia with CreditNinja   

If you are looking for personal loans in Georgia, CreditNinja can help you get your finances back on track with fast, online loans!

The best personal loan you can get is the one you can get as soon as possible. And that’s why CreditNinja’s application process is ready whenever you are.

  • Our online loan application takes just a few minutes. 
  • CreditNinja approves most applications within 24 hours.
  • Funds are deposited to your bank account the next business day. 

CreditNinja customers avoid the hassle and expense of predatory online payday loans with competitive loans and quality customer service. We even offer loans for bad credit that can get you the extra cash you need now! 

CreditNinja services are available across Georgia.  Apply today, or contact us for more information.

What our borrowers are saying

¹Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications approved before 10:30 a.m. CT Monday – Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case, the loan if approved, will be funded the business day after such additional verification is completed.