Online Payday Loan Alabama: Rates and Terms 

Online Payday Loan Alabama

What is a payday loan? Before we dive into the specifics of the loans in Alabama, it’s worth defining the term. Generally, people correlate this type of loan with short-term credit with high costs.

The average size will sometimes equal $500 or even less. And the major feature is the due date which is the next day.

Is payday loan a common request in Alabama? Licensed financial contractors offer their services to borrowers looking for nice bargains with relevant rates and conditions. For example, the APR and fees can be considerably higher than with credit cards, so borrowers should beware of it beforehand.

Is it easy to find a reliable loan partner in Alabama? Before you hop into any loan activity, you should introduce yourself to the conditions. In the following paragraphs, we’ll describe the most significant features.

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Rates And Terms Of Alabama Payday Loans

Being a thriving business in Alabama, loans have become a common way for borrowers to get some quick money. The laws in Alabama allow for a $500 loan. As for the conditions, you can expect the range from 10 to 31 days of a credit term.

But what about the APR, fees, repayment time, or credit score? No wonder this type of credit is popular both among loan lenders and borrowers. The first benefit from high demand and revenue, while the latter can get some cash quickly without much effort.

However, the devil is hidden in the details. You have to be cautious when dealing with financial services. It’s a well-known fact that short-term credits come with a high-cost end. So, let’s dive in and see what conditions you should familiarize yourself with.

APR

APR is easily deciphered as an annual percentage rate and depends primarily on the overall sum borrowed by a person. The percentage must be disclosed before any agreement or paper is signed to prevent any type of misdeed.

What is the average APR in the Alabama area? Due to the high level of leeway among the deal parties, you can expect an example APR of around 426% for any loan amount. So, be it a $100 or $500 loan, you will still be imposed with the same percentage as a borrower.

However, the percentage can vary from one lender to another. The best practice is to compare the lending services. While some companies charge their borrowers 426%, others prefer to impose a higher percentage, for example, 600% or even more. Usually, the loan APR increases with shorter period conditions and rises with longer conditions.

Fees

The legally allowed loan fee rate is 17.5%, so after making some calculations, you can come up with the answer to the question. What are the fees in Alabama? In general, each $100 will be charged with a 17.5% fee rate. The practice shows that the fee rate doesn’t get affected either by term or APR.

You should keep in mind that 17.5% is the maximum rate allowed. It should, however, be included in the agreement so you get familiar with the numbers before signing any paper. This rate will directly affect the final total payments

Generally, this fee should be the only one imposed on the borrowers. But in some cases, an additional one-time $30 fee can be charged. Furthermore, when your payment is overdue, or other financial issues occur, you may consider covering other court or attorney fees.

Size Fee Rate Fee Amount
$100 17.5% $17.50
$200 17.5% $35
$300 17.5% $52.50
$400 17.5% $70
$500 17.5% $87.50

Terms Of Getting Money

Loans are very convenient for those seeking quick cash. But can anyone apply for this type of credit? Let’s see what you will need to request the capital from the provider.

  • A loan is available for U.S. residents over the age of 18 only, so consider it before applying for the credit. Otherwise, you can get instant rejection.
  • Stable and regular income is another requirement. Your minimum income should start at $800 per month.
  • The last major requirement is the phone and checking account so that the cash can be easily deposited to you.

Other than that, it’s pretty easy to get cash. You should be good to go if you meet the loan requirements and don’t face any other application-related issues. Make sure to write down and fill in the application form, send it and wait for approval. No hard science is involved here.

Repayment Terms

What should you know about the repayment conditions? First of all, the repayment conditions are pretty flexible, so you can choose whether you stick for 1, 2, 6, or even 12 months. However, it’s essential to stay true to reality and having a clear vision of your repayment abilities is essential.

What can potentially happen if you overdue the repayment conditions? In the first place, the provider can charge you a higher interest rate, so you will find yourself in a dire situation. The second aftermath is a damaged credit score. It’s best to pre-calculate how much capital you actually need and can repay so that none of these consequences can relate to your case.

Credit Score

A credit score is built on your credit card reports and can clearly show others your regular payment behavior. It’s a complex task to reach an excellent credit score because too many factors affect the final rate. However, you shouldn’t be bothered by this issue when requesting a credit in Alabama.

First and foremost, for many providers, it doesn’t play a huge role. You can find yourself with a fair credit score and still be able to apply. And the second thing is that many providers don’t even pay attention to these numbers.

Moreover, the soft checks don’t affect your score, which is a great advantage for borrowers.

Is Alabama Payday Loan Right For Me?

A loan is a great way to get some cash when you know what you’re requesting. If there are any alternative methods to get the cash faster, or if you can’t decide what you need the finances for, it’s better to avoid this type of loan. However, if you’re eligible for the credit type and are sure you can repay, you go and get your funds online.

Am I Eligible for a Payday Loan in Alabama?

Before you apply for any credit type, it’s essential to check if you’re eligible. What does it mean? You can get the right to request cash unless you fail to meet the criteria. The main criteria for a loan are the following:

  • You have to be a U.S. citizen over 18 years old.
  • Your income should be stable and come in regularly.
  • It’s critical to earn at least $800 per month.

No excellent credit score is needed to be eligible for the loan type.

Can I Apply For Payday Loan in Alabama With Bad Credit?

Yes, you can apply for a loan with a bad or fair credit score. The loan providers usually close their eyes to the credit score you possess. Some other important criteria decide whether or not you will get your money. And a credit score isn’t one of them.

FAQ

What payday loan in Alabama should I avoid?

There are different loan providers, so the risk of bumping into an unlicensed one is huge as well. You should check the legal grounds before cooperating with the loan provider. The second thing is to compare the APR, fees, conditions, and other details.

How many payday loans can I get at the same time in Alabama?

The general rule of thumb is to get a maximum of 3 loans as an individual per time. Once you repay, you can start over again. However, the number of credits can be decreased to 2 per time if you were caught in some misdeeds or financial manipulations in the past.

When it’s not a good idea to take a payday loan in Alabama?

You must remember that the APR is considerably higher than the one with credit cards. So, you should consider the APR, fees, and repayment conditions before signing in the paper. If you aren’t sure you can repay the whole sum on time, it’s better to consider the alternatives or set a lower loan sum.

Is it better to apply for online or offline payday loans in Alabama?

It’s a question of your convenience. You can go to the brick-and-mortar place to request a loan. However, there are plenty of good, well-reviewed services online, so you don’t even have to bother yourself with leaving your house.