Akron is the fifth-largest city in Ohio, with over 700,000 people across its metro area. The city was founded in 1825 and prospered after opening a canal that connected Akron to Cleveland. Akron earned its “Rubber Capital of the World” status with the founding of the Goodyear Tire & Rubber Company and B. F. Goodrich.
Like many other great American cities, getting loans in Akron, OH, can be difficult if you have bad credit. Every year, people give up on trying to put their financial past behind them and give in to using outdated, expensive cash advance options. But, all that can change.
This article will look at what kind of loans are available in “Rubber City” to help your finances bounce back into the black. If you’re in Akron and looking to find a financial fix that works, read on!
What Are Installment Loans?
Installment loans are loans you pay back over time in equal payments. These payments are called installments. Borrowers pay installments every month until the loan Balance is zero. Most consumer loans are installment loans.
All loans come with interest. Interest is the cost of getting a loan from a lender. Interest is expressed as an annual percentage rate (APR). Some loans have variable interest that rises and falls with the market. Other loans—like installment loans—have fixed interest rates. Fixed interest rates are ideal because they make it easier to build a budget around your payments.
Credit Reports and Your Credit Score
No matter what loan option you choose, your credit score will play a role in your approval or denial. It’s no secret that good credit is better than bad credit when borrowing money. But do you even know where your credit score comes from?
Credit scores come from credit reports, which contain information about our consumers. Credit reports come from credit bureaus—data collection agencies that analyze financial information supplied by your creditors and lenders. Your credit report is composed of these five factors. Each of them has a different weight (listed in percentages) on your credit score:
Payment History (35%)
Payment history is a record of all of your late and delinquent payments. Your payment history is the most critical factor in your credit because it gives lenders insight into your behavior with your bills. Good payment history can make or break your chances for some loans.
To keep your payment history solid, always pay your bills on time. If you think that you’re going to be late on a payment, contact your lender to let them know when to expect payment or work out a new payment plan that works for both you and your lender.
Credit Utilization (30%)
Credit utilization is the amount of your available credit you are using. For example, if you have a $500 balance on a credit card with a $2,000 max limit, you are using one-fourth of your credit line. That makes your credit utilization 25%. Keeping a low utilization is about making regular payments on your credit line. Overall, keep your utilization at or below 30%. That will keep credit card fees stable and leave your available credit open for when you need it.
Credit History (15%)
Your oldest credit account shows lenders how long you’ve been managing debt. If your oldest account is a credit card you want to get rid of, consider paying it off instead of canceling it.
New Credit (10%)
New credit records the number of hard inquiries made to your credit report. If you have too many hard inquiries close together, other lenders may see that as a desperate rush for loans. If you’re applying for a loan, don’t apply for any other loans or credit at the same time.
Credit Mix (10%)
Credit mix is a review of all the different types of debt you’re managing. For example, if you have student loans and a credit card, you have a credit mix. One debt is the same every month, while the other fluctuates according to your usage. While it doesn’t have the most significant impact on your score, a healthy credit mix is a sign of financial responsibility.
There are three major credit bureaus in the United States—Equifax, Experian, and TransUnion. Each credit bureau uses its algorithm to calculate credit scores. They range from 300 to 850, based on the FICO standard for credit scoring:
Very good: 740-799
Good or excellent credit scores give borrowers loans with lower interest rates and longer loan terms. When your credit is not-so-great, your path to financial freedom is different. However, there are lenders with loans in Akron that don’t rely on credit scores.
Common Cash Advance Options
In addition to personal loans, people use cash advances to cover bills. Some cash advances work like loans, while others have completely different structures. But there is one thing that each of the following cash advance options shares: they all need careful consideration before taking any of them on.
Credit Card Cash Advance
If you have a major credit card, the chances are high that you can use it as a banking card. You can withdraw a credit card cash advance from almost any ATM in the world. That availability easily makes a credit card cash advance one of the fastest ways to get cash in your hand.
But, even though you can get a cash advance on your card quickly, it doesn’t mean that you can get it repaid just as fast. That’s because a cash advance comes with a service fee at most major credit card companies. In addition to that charge, the cash advance accrues the credit card’s standard interest and finance charges. The minute you turn your credit card into a cash advance card, be prepared to pay the cost for that fast access to money.
Payday Loans in Akron
A payday loan is a high-risk, short-term loan that lenders market as personal loans to people with bad credit. Payday loans don’t require a credit check. Additionally, payday loans have fast application processes that take less time than a bank or credit union. If you get approved, your money is deposited into your bank account immediately. But are payday loans safe?
The Truth About Payday Loans
Like an installment loan, borrowers receive payday loans in a lump sum. But unlike the months or years, you would have to pay off installment loans, payday loans have loan terms that last only a matter of weeks or days. In addition to the thousands of payday loan stores across the country, online payday loans reach even more people. Some of these online quick cash loans are known for sending loan amounts within a few hours. With so many people dealing with debt every day, it’s easy to see why online payday loans are popular.
A payday loan is a cash advance that can stay with you long after you’ve benefitted from its use. It turns into a new payday loan when you can’t pay off your payday loan before the due date. The balance of your old loan—including interest—becomes the principal of a new payday loan. And since it’s another loan, it has interest and origination fees attached to it, again. If you don’t pay off this “new” loan, it will become another loan. As you can see, interest piles up quickly on payday loans, which makes them very expensive. And if the damage to your credit score and bank account weren’t enough, payday lenders regularly employ aggressive debt collectors that will hassle you for the payments you can’t make.
Title loans are secured loans that require your car’s title for collateral. A title is a document that lists the legal owner of a vehicle. Title loans are attractive to people that own their car but want to avoid a credit check. Title loans are also available in small amounts and can be processed quickly.
How Title Loans Work
You get a title loan by giving the lender your title and an extra set of keys to your car. You get your desired loan and have anywhere from two weeks to a month to pay it back. Like any other loan, you will also owe interest and fees. If you don’t repay a title loan by the end of the loan agreement, your loan will roll over into a new loan. Like a payday loan, a title loan comes with high interest and fees and has similar payment structures. That means that every time you miss a due date, the rollover on your title loan will add another round of interest and fees.
Title Loan Disadvantages
The most significant disadvantage to title loans is the genuine possibility of losing your title to the lender. If you fail to make any of the rollover payments work, your title loan lender could keep your title, making the lending company the legal owner of your car. And if the title loan store can only sell your car for less than you owe, you will still be responsible for whatever balance remains. Think about that—if a title loan goes sideways, you can lose your car and be even deeper in debt!.
No matter how desperate you are for help, carefully consider the high cost of payday loans, title loans, and other installment loan alternatives. The promise of fast cash and no credit checks can make it easy to ignore the financial pitfalls of high-interest loans that cost you much more than you borrow.
CreditNinja Has Loans in Akron, Ohio For You!
“Bad credit loans” don’t have to mean “payday loans” in Akron anymore. CreditNinja has online installment loans that work for you now, without judging you on your credit history. When you choose a CreditNinja loan, you are guaranteed:
Fast Application Process
Why should you have to stand around in a payday loan store or bank branch to get a loan? CreditNinja’s quick and easy loan process just takes a few minutes and a couple of pieces of information. After our loans are approved, they deposit directly into the bank account of your choice.
Zero Pre-payment Penalties
If you find a way to clear your CreditNinja installment loan balance before the end of your loan term, do it. None of our loans come with any pre-payment penalties. You shouldn’t have to pay more fees … for teaching yourself how to pay fewer fees.
Excellent Customer Service!
We want you always to get your installment loan questions answered. So our Customer Care Team is here to help you through every step of your financial journey with us. From help with installment payments to learning about other ways we can help, we’ve got you covered.
Loans Designed With You in Mind
It has never been easier to find good loans in Akron, Ohio. And if you’re tired of hopping on and off the payday loan debt cycle, it’s time to see what CreditNinja can do for you. For more information on how you can get started on your financial fix, apply now, or contact us today.