Top Lenders & Best Picks for You

Best Personal Loans in Birmingham, AL

In Alabama, the average personal loan debt is $13,892. People typically use personal loans for various purposes, like debt consolidation, home renovations, medical bills, emergency costs and more. When applying for a personal loan in Birmingham, lenders will take into account several factors, including credit score, income details and debt-to-income ratio. If you have a good to excellent credit score, you may get lower interest rates and better loan terms. Additionally, the best lender for you can vary based on your financial history and needs.

Advertising & Editorial Disclosure
Last Updated: 10/25/2022
Reviewed By     |  

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

    on Truist Website

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

    on Upstart Website

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

    on SoFi Website

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

    on Upgrade Website

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

    on Best Egg Website

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.

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

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.