18 years is the age when we become adults and step out of out childhood and after your 18th birthday you will be able to do many new thing starting from getting a drivers license to starting a family, using alcoholic beverages, cigarettes and also start using various financial services. Coming of age is one of the most exiting periods of out life when we have to start really thinking what do we want to achieve in our lifetime and what career to choose as well as where to say and how to put out finances in order. And one of those, previously mentioned, financial services that you can start using are loans that you can now start exploring and slowly start building your credit score. In todays modern world we all take out loans for various different reasons starting from mortgages and car loans to some more short term loan options for emergencies like consumer credit cards and quick loans.
Usually the 18 year age marks the turning point in out life and we can now be considered adults with all of the benefits that distinguish adults from teenagers and kids. But because credit and loans are a very powerful financial service usually governments create laws that govern when and how you can borrow money. And that is why in most of the world fast loans can be used only from 20 or 21 years because governments and financial companies feel that people younger than 20 years are not mature enough to be responsible and lending money to them is too risky. There have been a lot of cases where young adults borrow money and can’t repay it in time and then the interest rates start to climb faster than they can pay. This ultimately leads to a situation where lenders must take on help from debt collectors or even the judicial system to get their money back.
In Georgia there are no concrete laws that explicitly state that people from 18 to 21 or 20 years cannot take out these quick short term loans but the lenders themselves have chosen not to give out loans to these young adults. At first there were no such restrictions but an increasing pressure from the society and parents of these young adults made these lenders reconsider and deny access to these services below ages 20 or 21. And for the most part this restriction has been beneficial but I have seen many complaints over the years from people who are under 21 and are unable to take out emergency loans for various purposes like medical bills as well as car repairs and other things that can’t wait for the next income to roll in. In my point of view this restriction can also be negative because when you turn 18 you can do everything that any other adult can and why should borrowing money be different and if you really need to get that cash advance you will have to beg your friends or family members for that money because most creditors will not approve your application.
Luckily every private lender can create their own rules as long as they do not conflict with the laws of the region they are operating in. The end result is that there are still some companies that will give out loans to 18 year olds and 19 year olds adults but usually you will have to get a secured loan or answer more questions before you get your money because you are considered a more riskier client and these lenders don’t want to lose money when you are unable to pay back the money that you borrowed. There are even some quick loan companies that are willing to take on more risk and give out unsecured loans to 18 year olds and 19 year olds but they are becoming very hard to find as more and more lenders join hands and stop giving out loans to these young adults.
If you are 18 years old and you want to take out a quick loan you have to understand that the lender will most likely do a more detailed background check on you where they will check all out other loans, your monthly income and your credit history. All this data will give the creditor a more complete picture about your ability to repay your quick loans and you should give them every bit of information that they ask for as it will most likely increase the chances of your application being approved and you getting that money. But even if you have a stable monthly income and a flawless credit history you can still be rejected because of your age and that can be very depressing but you should not give up and try multiple credit companies and maybe one of them will approve your application.
The debate over “lend or not to lend” money to 18 year olds and 19 year olds has been ranging for as long as there have been these fast short term loans but from my perspective it is a discrimination if you deny adults their freedom and deny their loan application just because they have not yet reached the appropriate age. And that is why I think everyone should have the chance to borrow money as long as he has reached that 18 year mark and has regular income!