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A quick guide to payday loans in Alabama

If you live in Alabama and are in need of a payday loan, you might be wondering how they work and what sort of laws are in place to keep you safe from predatory lenders. Our guide has everything you need to know about state laws and regulations.

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  • Loan Amount: Varies by state
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    Can I get a payday loan in Alabama?

    Yes, payday loans are legal in Alabama and governed by state statute 5-18A-1 et seq.. The laws are the same for both storefront locations and online lenders, and lenders are required to have a valid license when operating in Alabama.

    The maximum amount payday lenders are allowed to offer is $500 with a maximum APR per $100 of 456.25%. Terms vary between 10 to 31 days, and you can rollover your loan once.

    More regulations upcoming

    Because payday loans are marketed for people in poverty and those same people have to keep coming back to borrow money–often to pay back their original loan–Alabama lawmakers are considering limiting the number of loans lenders can give per year. This isn’t set to change for another few years, but keep an eye out: hopefully these limits will help protect consumers from predatory tactics in the future.

    Payday lenders available in Alabama

    Check to see if a lender operates in your state of residence.

    Rates last updated December 13th, 2017
    Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
    Name Product Product Description Maximum Loan Amount Term of Loan Turnaround Time Requirements
    Slam Dunk Loans
    Potentially get approved for a short-term loan through this lender-connection service, even with poor credit history.
    $2,500
    Varies by lender
    As soon as next business day
    Must be employed, receive regular income, earn at least $800 a month, have a checking account, be 18+ yrs old and a US citizen.
    CashNetUSA Loan
    Apply for a short-term loan with an easy online application and dedicated customer service.
    Varies by state
    Varies by state
    1 business day
    You must be a US citizen or permanent resident, be at least 18 years old and have regular income and a bank account.
    OppLoans Installment Loans
    Installment loans with competitive rates from a top-rated direct lender.
    $4,000
    9 to 36 months
    1 business day
    Open only to residents of AL, CA, DE, GA, KS, ID, IL, MO, MS, NV, NM, OH, SC, TN, TX, UT, VA and WI. Must have direct deposit to demonstrate sufficient monthly income.
    HonestLoans Installment Loans
    Get a flexible installment loan with fast funding through one easy online application form.
    $2,500
    Varies by lender
    As soon as one business day
    Must be employed and receive regular income, earn at least $800 a month, have a checking account and be an 18+ years old legal US citizen.
    NetCredit Installment Loan
    Build a positive credit history with on-time payments and flexible repayment terms. Check your rate without affecting your credit score.
    $10,000
    Varies upon state
    1-3 business days
    Must be 18+ years old, a legal resident of the US and have a Social Security number. Minimum credit score of 550.
    Blue Trust Loans Installment Loans
    Get an installment loan from an online tribal lender. Perks for returning borrowers.
    $2,000
    6 months
    As soon as next business day
    Must be at least 18 years old and have a verifiable source of income with direct deposit into your checking account.
    MaxLend Installment Loans
    Get up to $1,000 as a first-timer, with loans of up to $2,000 and lower APRs for repeat borrowers.
    $2,000
    6 months
    As soon as the next business day
    Must be at least 18 years old and a US citizen, have a valid bank account and provide a verifiable source of income.

    Compare up to 4 providers

    What should I consider before getting a payday loan?

    Payday loans can be dangerous if you aren’t prepared for the fees that come with them, but if you have an emergency and need a little extra funding, a small loan can sometimes be the difference between paying for something you can’t afford–like a car repair–or having to invest a lot of time and money into a bigger problem later on. As with all lines of credit, be sure you can repay what you borrow before you sign a contract.

    If you’re just struggling to handle bills, Alabama programs like the Alabama Department of Human Resources Food Assistance Division, Alabama Medicaid Agency, Low Income Home Energy Assistance Program (LIHEAP) and Debt Reduction Services Inc. can help you meet your everyday obligations.

    And don’t forget to consider the alternatives to a payday loan before you apply

    What will I have to pay for a loan?

    Whenever you borrow money from a payday lender, you can expect to pay high interest. They may also charge you a fee for a late payment or extending your loan.

    • Financing fees: Payday lenders in Alabama can charge 17.50% of the loan in financing fees. The maximum charge for a 14-day $100 loan cannot exceed $17.50.
    • Non-sufficient funds (NSF) fees: A lender can charge you a $30 NSF fee if there are insufficient funds in your account when it cashes your check or attempts to withdraw the owed amount from your bank account.
    • Default fees: A lender can charge 3% per month if you default on the loan, beginning on the date of default.
    • Loan extension fees: You can extend your payday loan with your lender once. You might have to pay a fee for the new deferred transaction.
    • Collection fees: Lenders can charge court costs as well as reasonable attorney’s fees limited to 15% of the check’s face value.

    Common application criteria

    Eligibility criteria will differ between lenders, but the list below will help you determine if you should apply.

    • You are at least 19 years old
    • You are a US citizen or a permanent resident
    • You have a steady source of income

    When going through the application, you’ll likely have to provide some personal information, including your Social Security number and details about your bank account. Have these and other documents (such as your ID) close when applying to make sure the process is quick and easy.

    Bottom line

    If you live in Alabama, a payday loan could be the difference between a huge emergency and being able to make it to your next check. While they have high costs, the laws in place will help you avoid trapping yourself in a cycle of debt. Always be careful when taking on a loan, and be sure you consider your other options before agreeing to a loan contract.

    Have more questions about Alabama payday loans?

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    2 Responses

    1. Default Gravatar
      JrodMarch 18, 2017

      If I live in Georgia can I go to Alabama and get a payday loan and if I can which is a good company?

      • Staff
        HaroldJuly 13, 2017Staff

        Hi Jrod,

        Thank you for your inquiry.

        Generally, you can can get a loan from the the state where you have the permanent residency. You can always clarify this with your preferred lender in Alabama for further verification.

        I hope this information has helped.

        Cheers,
        Harold

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    OppLoans Installment Loans

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