Top Lenders & Best Picks for You

Best Personal Loans in Alabama

MoneyGeek analysis found that Truist offers the best personal loans in Alabama. They don’t charge origination fees and offer a discount for auto repayments.

When shopping for personal loans in Alabama, borrowers should select a lender that meets their needs. MoneyGeek data shows Upstart is the best lender for bad credit, while SoFi is ideal for those with good credit. Meanwhile, Upgrade and Best Egg are the best lenders for debt consolidation and home improvement loans, respectively.

Advertising & Editorial Disclosure
Last Updated: 11/22/2022
Reviewed By     |  
tip icon

MoneyGeek’s Pick for Best Personal Loan Lender in Alabama: Truist

With people becoming more comfortable taking out personal loans, it’s wise to determine which lenders offer the best personal loans in Alabama. MoneyGeek’s analysis considers over 30 factors to determine top options. These include factors like interest rates, loan amounts and much more.

Our study also explores factors that may affect your application, such as your credit score, income and age. For example, the average credit score in Alabama is 706. If yours is close or on par with this, you’re in good shape. Few lenders require a credit score higher than 700.

Best Overall Personal Loan Lender in Alabama: Truist


  • Truist

    • 8.14% to 18.99%APR Range
    • NoneMinimum Credit Score
    • $3,500 to $50,000Loan Amount Range
    • 6 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    on Truist Website

Best Personal Loan Lender for Bad Credit in Alabama: Upstart


  • Upstart

    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    on Upstart Website

Best Personal Loan Lender for Good Credit in Alabama: SoFi


  • SoFi

    • 5.74% to 20.28%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • Two DaysTime to Receive Funds

    on SoFi Website

Best Personal Loan Lender for Debt Consolidation in Alabama: Upgrade


  • Upgrade

    • 5.94% to 35.47%APR Range
    • 560Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    on Upgrade Website

Best Personal Loan Lender for Home Improvement in Alabama: Best Egg


  • Best Egg

    • 4.99% to 35.99%APR Range
    • 700Minimum Credit Score
    • $2,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    on Best Egg Website

How to Choose the Best Personal Loan Lender in Alabama for You

Taking out a personal loan has its benefits. You can use it for repayments of other debts or home renovations. However, the average amount of personal loans in Alabama is $13,892, with an average interest rate of 8.85%. More than ensuring you’re qualified for the loan, making sure you’re ready for the responsibilities that come afterward is crucial. To help you look at all the angles, MoneyGeek details several steps you can use.

1

Ask Yourself the Important Questions

Before applying for a personal loan in Alabama, there are several questions you should ask yourself.

  • What do you need it for and how much? A personal loan is a good choice if you’re looking at debt consolidation, paying for medical bills or moving expenses. You may want to consider other options if you have a different objective.
  • What’s your credit standing? A lower credit score limits your lender options and results in a higher interest rate.
  • Are you comfortable with the required monthly payment? Expect your monthly expenses to increase after a personal loan. Remember that missing a payment may affect your credit standing.
  • Do you have existing debts? If this is the only loan you’re paying, it may be easier to manage. However, if you already have other debts, ask yourself if you really want to add another one to the mix.
2

Do Your Research

Getting a personal loan in Alabama is a long-term commitment. You need to ensure you’re capable of making regular monthly payments for the next two to four years. Multiple factors determine how much you pay, such as your loan term and interest rate.

Both vary between lenders, so it’s crucial to compare information from multiple establishments before choosing one. MoneyGeek’s study provides you with pertinent information to help you decide.

However, you may be looking for data that we didn't include. Don’t hesitate to do your own research to make a fully informed decision. You can even consider other options if you feel those fit your needs better.

3

Wait

When you've figured out which lender offers the best personal loans in Alabama for your unique situation, it can be very tempting to proceed with the application process immediately. It may sound like an efficient way of doing things, but it’s better to hold off a little.

Give yourself a little breathing room. You’ve done a lot at this point, including carefully evaluating your financial situation and looking through the various rates and offers from lenders.

A day or two won’t hurt, and it will allow you to revisit your decision afterward with more objective eyes. Keep in mind that a personal loan is a big commitment. It's best to be entirely sure about your decision to move forward with it.

4

Read the Fine Print

Once you’ve settled on a lender, it’s time to look at the fine print. More than the interest rates and loan terms, check out possible causes for additional expenses.

Some of these could include:

  • Whether your lender charges an origination fee. If yes, how do they determine how much you pay?
  • Late fees for missing scheduled payments. How much will you pay if you can’t make your payment on time?
  • Fees for paying back your loan early. Will your lender charge you an exit fee if you decide to pay off your loan earlier than your stated loan term?

Even if you’re comfortable with the monthly loan payment, overlooking things like these may bring additional expenses that you hadn’t anticipated.

5

Apply

All that’s left for you to do once you complete these steps is apply. It may seem like a tedious process, but securing a loan after completing all these steps puts you in a better position since you know you’ve considered all possible angles. Some lenders allow you to process your application online. However, if you prefer to visit a branch or speak with a representative, go ahead and do so.

Regardless of your preferred channel, make sure you have all the information needed for the application process. At the very least, this includes your identification, verification of address and proof of income.

What to Do if You Can’t Get a Personal Loan in Alabama

Sometimes it happens. Despite the preparation and the research, your loan application gets denied. It’s crucial to understand what led the lender to this decision. You can even ask them if there’s any way you can modify your application to make it more acceptable. This can include options like considering a shorter loan term or decreasing the amount.

If it boils down to something that requires more time to address (like your credit score or your income), use this as a way to prepare for the next time you apply for a personal loan in Alabama. You can always choose to go to another lender with your current credentials, but it may be a better idea to work on those specific areas first.

You may even consider getting a payday loan since these are more accessible, but this option has multiple disadvantages. You may have astronomical interest rates (an average of 398%), which could quickly put you in more debt.

Frequently Asked Questions About Personal Loans in Alabama

The best personal loan lender in Alabama depends on your unique needs and profile. Here are the most commonly asked questions to provide you with more information.

tip icon
METHODOLOGY

We reviewed more than 30 personal loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

Within each ranking criteria category, we considered several individual data points that we feel carry the most weight when choosing a personal loan lender. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like prequalification, payment options and mobile apps.

After careful consideration and calculation, our picks are decided and chosen with your best interest in mind. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender that meets your needs.

sources

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity.