Do you have bad credit? If so, you already understand that a poor credit score can affect everything from the type of credit cards you’re eligible for to whether or not a landlord will rent an apartment to you. Bad credit also means that it can be difficult to get a loan from traditional banks and mortgage companies.
But there is good news: you can get bad credit loans in Georgia. It’s just a matter of knowing where to turn. We’ll take a look at the ins and outs of acquiring a loan, no matter how low your credit score.
First, Let’s Take a Look at Credit Scores
There are several major credit bureaus, but all of them calculate a score based on your credit history. Credit scores range from 300 to 850. Any score under 600 is generally considered bad credit.
What factors determine your credit score? Your history of paying off bills and debts, for starters. The credit bureaus also take into account any negative financial issues, such as bankruptcy, foreclosure on real estate property, or defaulting on a loan.
Can a Credit Score Be Improved?
Yes! It will take some time, as well as very careful financial management. But your credit score is not set in stone.
The process of repairing your credit starts by checking your credit report, which should only be done once annually. (Too many checks will actually hurt your credit, believe it or not!) Paying off any outstanding balances or debts is also necessary. Then, it’s a matter of managing your credit accounts repsonsibly, paying on time, and in many cases acquiring additional credit cards.
Repairing a credit score is a sound financial decision, but the process can be lengthy. If you need a loan now, while your credit score is still poor, is there anything that can be done?
Bad Credit Loans in Georgia Are Available
Again, the answer is yes! By using the services of private lenders — rather than financial institutions like a bank, credit union, or mortgage agency — you can secure a loan even if your credit score isn’t good. These loans are called hard money loans.
Private lenders generally set a high-interest rate on loans. Some ask for collateral, such as the title to a car or home, or other valuable assets. This is understandable; if you don’t have a good track record of paying off loans or debts, you’re a risk.
Do not take out bad credit loans unless you are absolutely sure that you’ll have the money to repay them — plus interest, if applicable — when repayment is due. In other words, these are not loans to “tide you over” if you’re between jobs.
However, hard money loans can be a godsend to anyone whose credit won’t let them qualify for other types of loans.
Bad credit loans in Georgia can help people in a tough financial spot. They have many advantages over traditional loans but make sure you understand the terms and conditions.
Not sure if a hard money loan is for you? Check out what others in similar situations have had to say about our services!