This guide gives you all the information you need about payday loans in Alabama, including the maximum you can borrow and how much they can cost.
Payday loans, also known as cash advances, have been under a lot of scrutiny. However, you may still find yourself in need of one due to a financial emergency. In Alabama, you can still obtain a payday loan. Luckily, there are legal limitations meant to protect consumers that lenders must follow.
Check into Cash Loans
Check into Cash allows you to directly apply for a payday loan and have your cash when you need it.
- Min. Loan Amount: $50
- Loan Term: Varies upon state
- Turnaround Time: 1-2 business days
- Total Costs: Varies depending on the amount and your state of residency
- Must be 18+
- No security needed
- Confidential and secure!
Loans available in Alabama
Alabama payday loan regulations
The same Alabama payday loan laws apply for both storefront, and online locations. Lenders also need to have valid licenses for each location where they offer loans. However, online lenders are harder to regulate, especially if they are tribal lenders. As a result, you may still see illegal offers and lenders advertised. If you see a lender in violation or trying to charge you unlawful fees, let them know you know your rights and see if lenders will negotiate with you. Otherwise, you can contact the Alabama Banking Department at (334) 242-3452 to file complaints.
- Maximum loan amount: $500
- Loan term: 10-31 days
- Maximum finance rate and fees: 17.50%; 3%/month after default
- Maximum finance charge for a 14-day $100 loan: $17.50
- Maximum APR for 14-day $100 loan: 456.25%
**NOTE: Lenders often disguise interest rates as fees and vice versa. That’s why there are three different ways fees and interest are limited. Be sure to check them all.**
- Rollovers permitted: One rollover
- Length of “cooling-off period” (time between opening a new loan): Next business day after 2 continuous loans repaid
- Repayment plan: Yes (will give you longer to pay back your debt–like an installment loan)
- Maximum number of outstanding loans at one time: None (This is a loophole for being able to borrow more than $500. You could have multiple loans.)
- Collection Fees: One $30 non-sufficient fund (NSF) fee for when a check bounces or there is not funds in your linked account, court costs, reasonable attorney’s fees up to 15% of face amount of check
- Criminal Action: Lenders cannot threaten you with criminal action unless check is returned due to closed account
Why consider a payday loan in Alabama?
Here are some of the features that come with Alabama payday loans:
- Bad credit borrowers can apply. Payday lenders in Alabama have more flexible lending criteria than mainstream banks. As long as you are able to manage the loan repayments you can apply for a payday loan.
- Apply from anywhere. While you always have the option of applying for a loan from a payday lender’s store, you can also apply online. This means you can apply for a loan no matter where you are, as long as you have documents that show you are a resident of Alabama.
- Receive your loan quickly. If you apply in-store, you can receive your loan in under an hour, while online lenders usually transfer your loan to you on the same day or by the next business day.
- Use your funds in any way. Payday lenders give borrowers the freedom to do what they want with their funds. You can use the money to repair your car, have a night out, buy a gift, pay bills, or simply get by until your next payday.
What fees and charges do Alabama payday loans come with?
Here are the fees and charges to expect when you take out a payday loan in Alabama:
- Annual Percentage Rate (APR). The maximum APR of a 14-day $100 payday loan in Alabama is 456.25%. The APR for a 30-day loan is 206.05%.
- Fees and charges. Payday lenders in Alabama can charge 17.50% of the loan in fees, so the maximum finance charge for a 14-day $100 loan cannot exceed $17.50. A lender can also charge 3% per month if you default on the loan, which is charged from the date of the default.
- Loan extension fees. You can extend your payday loan with your lender only once, and you’ll have to pay a fee for the new deferred transaction. The lender can also charge you a non-sufficient funds (NSF) fee if there are insufficient funds in your account when you present your check.
- Collection fees. Payday lenders in Alabama can charge a one-off $30 NSF fee. They can charge court costs as well as “reasonable” attorney’s fees limited to 15% of the check’s face value.
- Early repayment fees. You can repay your Alabama payday loan ahead of schedule without incurring any additional fees.
Here’s how to apply for an Alabama payday loan
You can apply for an Alabama payday loan online or by visiting a store. Eligibility criteria will differ between lenders, but the following is likely to apply:
- You should be aged 18 years or older
- You need to have a steady job
- You must be an American citizen or a permanent resident of the US
- You need to have an operational checking account
To complete the application, you have to provide the following information:
- Your complete name, residential address, email address, and phone number
- Details from a valid photo ID
- Your employer’s name and contact details
- Details about your income
Important information about payday loansWhile payday loans can be beneficial for many people, they aren’t always the best option for everyone. Follow the link for more information. The hidden consequences of payday loans
Have more questions about Alabama payday loans?
How long does it take to complete a typical payday loan application? If you have access to all the required information, you can complete most applications in 10 to 15 minutes. What are the typical loan terms of a cash advance in Alabama? The loan terms of payday loans in this state can vary between 10 and 31 days. What happens if I cannot repay the loan even after a rollover? The lender can give you an option to go on an extended payment plan that consists of four equal monthly installments. This is not the same as an Alabama installment loan.