Top Lenders & Best Picks for You

Best Personal Loans in Birmingham, AL

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Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

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

MoneyGeek analyzed more than 30 data points to determine which lenders offer the best personal loans in Birmingham. Our analysis was based on BBB ratings, loan amounts, repayment lengths, interest rates, fees, minimum requirements and more. We also considered the factors that may affect your chances of getting approved. These include minimum credit score and gross income requirements.

Take the time to evaluate your financial history and how you intend to use your loan in order to determine the best lender for you. Our top picks for different types of borrowers can help you with your search.

Best Overall Personal Loan Lender in Birmingham: 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

    MoneyGeek evaluated different lenders and determined that Truist is the best option overall for personal loans in Birmingham. It lets you borrow up to $100,000 and doesn’t charge origination, prepayment or late fees. Additionally, it doesn’t have any employment or gross income requirements.

    There is no minimum credit score required to qualify for a loan from Truist. If you get approved on a business banking day, you may get the money on the next day. However, you cannot use the funds on post-secondary education expenses or businesses.

    Truist is a financial services company formed after SunTrust Banks and BB&T Corp. merged in 2019. It is currently a top 10 U.S. commercial bank, serving clients in 15 states, including Alabama.

    Pros

    • No origination, prepayment or late fees
    • A+ BBB rating
    • 0.5% autopay discount
    • Same-day funding
    • Mobile app available

    Cons

    • Conducts hard credit checks
    • Doesn’t accept people with new or no credit
    • Won’t accept co-signers
    • APR range: 8.14% to 18.99%
    • Minimum/maximum loan amount: $3,500 to $50,000
    • Minimum credit requirements: None
    • Repayment terms: Six to 60 months
    • Time to receive funds: Next day
    Truist

Best Personal Loan Lender for Bad Credit in Birmingham: 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

    Since Upstart only requires a minimum credit score of 300, MoneyGeek chose it as the best option in Birmingham for individuals with bad credit scores. Upstart is an artificial intelligence (AI) lending platform serving customers in 48 states. It was launched in 2012.

    This lender conducts a soft credit inquiry, which won’t affect your credit report. Once your loan application is approved, you may get your funds within the next day. However, you’re only allowed to borrow a maximum of $50,000. Upstart may not be the lender for you if you need a larger loan. Additionally, it’s not an option if you have a debt-to-income ratio higher than 45%.

    Pros

    • A+ BBB rating
    • Low credit score requirement
    • No prepayment penalty
    • Get funds quickly
    • Conducts soft credit checks

    Cons

    • Charges up to an 8% origination fee
    • $15 late fee
    • Doesn’t allow co-signers
    • APR range: 3.22% to 35.99%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 300
    • Repayment terms: 36–60 months
    • Time to receive funds: Next day
    Upstart

Best Personal Loan Lender for Good Credit in Birmingham: 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

    SoFi has been helping customers reach their financial independence since 2011.

    Based on MoneyGeek’s research, SoFi offers the best personal loans in Birmingham for individuals with good credit. This lender has a minimum credit score requirement of 680.

    If you need a large loan, you can borrow a maximum of $100,000 from SoFi. You won’t be charged for any fees, such as origination, prepayment or late fees. You may also get a 0.25% discount if you set up autopay.

    It’s worth noting that SoFi has employment requirements and a minimum gross income requirement of $50,000. Additionally, loan funding can take two days.

    Pros

    • A+ BBB rating
    • No origination, prepayment or late fees
    • 0.25% autopay discount
    • Conducts soft credit inquiry
    • Offers a mobile app

    Cons

    • Minimum gross income requirement of $50,000
    • Minimum credit score of 680
    • Doesn’t allow co-signers
    • APR range: 5.74% to 20.28%
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 680
    • Repayment terms: 12–60 months
    • Time to receive funds: Two days
    SoFi

Best Personal Loan Lender for Debt Consolidation: 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

    Launched in 2017, Upgrade aims to provide more value and a better banking experience to its customers. MoneyGeek found that this lender offers the best personal loan for debt consolidation in Birmingham.

    Upgrade requires a minimum credit score of 560, which means those with fair credit can qualify for a loan. Moreover, it doesn’t have a minimum gross income requirement. Once approved, you can get your money on the same day.

    However, Upgrade caps its loan amounts at $50,000. It also has restrictions on the usage of funds. You’re prohibited from using your personal loan to pay for post-secondary education expenses, investments, illegal activities and gambling.

    Pros

    • A+ BBB rating
    • 1% discount for auto payment
    • No prepayment penalty
    • No minimum gross income requirement
    • Fair credit score requirement

    Cons

    • Restrictions on fund usage
    • Has high origination fee
    • $10 late fee
    • APR range: 5.94%–35.47%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 560
    • Repayment terms: 36–60 months
    • Time to receive funds: Same day
    Upgrade

Best Personal Loan Lender for Home Improvement in Birmingham: 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

    If you’re looking for a personal loan in Birmingham to finance your home improvements, Best Egg might be your best option. This company was founded in 2014 and helps customers get the money they need.

    With Best Egg, you may get an interest rate as low as 4.99%. You can also receive a 0.5% discount from this lender if you sign up for autopay. However, it charges origination and late fees.

    Furthermore, you can only borrow up to $50,000 from Best Egg. To qualify for a loan, you’ll need a credit score of 700 and a minimum gross income of $50,000.

    Pros

    • A+ BBB rating
    • 0.5% discount for auto payment
    • No prepayment penalty
    • Conducts soft credit inquiry
    • Offers a mobile app

    Cons

    • Minimum credit score requirement of 700
    • Charges up to a 6% origination fee
    • Gross income requirement of at least $50,000
    • APR range: 4.99% to 35.99%
    • Minimum/maximum loan amount: $2,000–$50,000
    • Minimum credit requirements: 700
    • Repayment terms: 36–60 months
    • Time to receive funds: Next day
    Best Egg

How to Choose the Best Personal Loan Lender In Birmingham for You

The average personal loan debt in Alabama is $13,892. Before you take out a personal loan to fund a major purchase or cover an emergency expense, you need to evaluate your current needs and situation to determine the best option for you. Plus, there are other factors to consider when it comes to loan applications, including your income, employment history and creditworthiness.

MoneyGeek outlined steps to help you find a personal loan in Birmingham.

1
Ask Yourself the Important Questions

Before anything else, you have to determine if getting a personal loan is the right choice for you. Consider your current financial situation and find out how much you need to cover your emergency needs or expenses. Then, check if you can afford the monthly payments on top of any pre-existing debts you might already have. This way, you won’t find yourself in a difficult financial spot.

To better assess your needs and circumstance, ask yourself the following questions:

  • How much funding do I need?
  • What is my credit score?
  • Can I afford the monthly payment?
  • How much debt do I already have?
2
Do Your Research

Conducting your own research is essential when looking for a personal loan. Through this process, you can better understand your options and learn all the relevant information about a loan package, including a lender’s terms, conditions, rates and fees.

Since a personal loan is a huge commitment that takes around two to four years to pay off, it’s best that you shop around and compare rates from different lenders to ensure you’re getting the best deal. Plus, you can find out which lenders have restrictions on the usage of funds.

MoneyGeek created this guide to help you find the best option for your needs. That said, our recommendations may not be sufficient because your situation is unique. As a result, exploring other options is vital when picking the right loan provider for you.

3
Wait

After comparing lenders and narrowing down your options, you should wait for a day or two to think about your decision. Keep in mind that there’s no need to be hasty, especially since a personal loan is a long-term commitment. By taking a step back, you can make an informed decision. You may find that there’s another option to fulfill your funding needs.

4
Read the Fine Print

Before submitting your loan application, you need to make sure that you didn’t overlook any details about the loan. It’s best to read the fine print thoroughly to avoid being surprised by upfront or hidden costs, such as origination fees, prepayment penalties and late fees. Knowing these terms and conditions can help you save money in the long run.

5
Apply

Once you’re 100% certain about your personal loan lender, it’s time to send in your application. Make sure to prepare all the documents and information that your loan provider might require. Usually, this includes identification, address verification and proof of income.

Some lenders allow you to submit your application online. While this is more convenient, there’s no harm in calling or visiting your lender if those options are available since you can get more personalized assistance with the application process.

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

Sometimes, personal loan applications get denied. This can be discouraging, especially when you’re planning on using the funds on home improvements or your dream vacation. If this happens, it’s best to find out what factors affected your lender’s decision so you can prevent a rejection from happening again.

Don’t hesitate to ask your lender about the specific reason for the denial of your application. Then, inquire if there’s a way to modify your application to make it more acceptable. For instance, you might be able to shorten your loan term or decrease the loan amount.

While it may be tempting to apply elsewhere, MoneyGeek advises against this until you’ve improved the factor that caused your loan application to get rejected in the first place. Also, if you’re looking into payday loans as an alternative, keep in mind that they come with disadvantages. Typically, payday loans have shorter payback periods and higher interest rates.

Frequently Asked Questions About Personal Loans in Birmingham

The best personal loan lender for you will depend on your particular needs as well as your credit score and income. MoneyGeek answered some frequently asked questions about personal loans in Birmingham to help you find the best lenders.

What is the best personal loan lender in Birmingham?
Which lender in Birmingham has the lowest interest rate?
Can I use a personal loan for vacations in Birmingham?
Can I use a personal loan for home improvement in Birmingham?
What can I not use my personal loan for in Birmingham?
How much can I borrow in Birmingham?
How long does it take to get a personal loan in Birmingham?
Can I pay off my loan early in Birmingham?

Our Personal Loan 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 determined 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
Shield Insurance

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. Learn more about our editorial policies and expert editorial team.

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