Having a bad credit score ( 300 – 499) or a poor credit score (500 – 579) can make it a challenge to find a loan if you live in the state of Ohio. If you have poor or bad credit and live in Ohio there are some options you can take.
The state of Ohio has enacted payday lending laws to protect those that are the most vulnerable – those with bad credit and low income. In 2008, Ohio enacted the (STLA) Short Term Lender Law. This law prohibits payday lenders from giving you a short-term loan over the phone or through the internet. This law also states that –
- the maximum loan they can lend to someone with bad credit is $500
- the loan term has to be longer than 31 days and the interest rate is capped at 28% APR
- the repayment cannot be 25% or less of your gross salary
- the state law restricts the number of loans the borrower can have within a period of time
- the lender cannot use tactics that are considered harassment to collect overdue payments
- payday lenders must register with the state as a short term lender.
Payday loans should only be used if you have no other alternative and you have the ability to repay the loan within the term of the agreement.
A note of caution: Payday lenders have found a loophole within the Ohio state laws and have registered as a mortgage lender. Mortgage regulations are much more lax and the lender is allowed to charge fees and higher interest rates. If you have bad credit and apply for a payday loan in Ohio be sure to read all of the terms and conditions before signing.
A better choice if you are looking for a bad credit loan in Ohio, is to apply for an installment loan. An installment loan offers you the ability to make monthly, smaller payments over a longer period of time. Just having this ability increases the chances that you will be able to repay the loan without incurring higher interest rates and steep penalties. The interest rates are usually lower than that of a payday loan and offer you the ability to repay the loan in full without penalty before the term is finished.
If you have poor or bad credit, but own your home you could apply for a secured personal loan using the equity in your home as security. Lending institutions are much more willing to lend money to those with bad credit when they know they can ‘repossess’ a tangible asset for repayment if you default in repayments.
It is hard to know what to do when you need the extra cash for unexpected bills. Having poor or bad credit limits who you can apply with. You, the consumer, must be very diligent in reading the fine print and terms and conditions of a loan before signing. Take a look at your ability to repay the loan within the given time. If you question your finances and ability to repay even a little, then do not take out a loan.
If you need a loan, have bad credit and live in Ohio, America Loan Service does have reputable lenders that may help you. They do a ‘soft credit check’ initially and if you choose to accept their loan offer may do a ‘hard pull’ on your credit. A ‘soft pull’ does not affect your credit score, so if you do not qualify you can apply elsewhere.
HOW TO QUALIFY FOR BETTER TERMS AND INTEREST RATES WITH BAD CREDIT
If you are one of the 14.92% of the overall population living in Ohio below the poverty level, finding a bad credit loan will be difficult. If your credit score is below 550, we would recommend that you work on rebuilding your credit so that when you apply for a loan you are offered more money with better terms and interest rates. It is so easy to remain in the vicious cycle of payday loans, and bad credit. You may need to hire a company that specializes in helping you ‘clean’ up your credit report. They will contact the Vendors and negotiate better terms and payments on your behalf. If there are things that are not correct on your credit report, they will help you remove them.
You can also join online credit rebuilding programs that will help you manage your monthly income and expenses. They offer reminders when it is time to make payments and offer incentives to keep you motivated.
Here are the links to the companies that we are affiliated with:
Novita Credit Rebuilding
THINGS TO KNOW ABOUT OHIO
Ohio’s population of 11.8 million people make it the seventh largest state for population. Its geographic location links the mid-west states to the northeast states. Although Ohio is the 7th largest for population, it sits in 34th position for being the largest state for land size. Its major cities are Columbus, the capital, Cleveland, Cincinnati, Toledo and Akron.
Statistics have shown that for those that live in Ohio and have not completed high school, 28.18% live below the poverty level while 13.39% with a high school diploma live below the poverty level. So many circumstances can happen that make it difficult for people to complete their education – family issues, a generational history of poverty, learning disabilities. Yet, it has been proven that those who have at least graduated from high school fair better financially than those who do not. It is never too late to complete your education and take post-secondary training, whether it be trades or a degree. The U.S. Department of Education offers grants and programs in all local areas to help adults and out-of-school youths age 16 and older to earn their high school diploma, GED preparation for secondary education. There is a way to move out of poverty. If you are looking to further your education, check out the links below for funding –