Best Bad-Credit Loan Lenders in Alabama
MoneyGeek analyzed over 30 data points to select our top picks for bad-credit loans in Alabama. These data points include APR ranges, loan amounts, repayment terms and fees. We also looked into the factors that could affect your chances of loan approval, such as minimum credit score requirements and maximum debt-to-income ratio.
Additionally, our guide includes some drawbacks you might want to consider — like restrictions on fund usage — to help you choose the best bad-credit loan lender for your particular needs and situation.
Best Overall Bad-Credit Loan 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
Runner-Up for Best Bad-Credit Loan 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
How to Choose the Best Bad-Credit Loan in Alabama for You
Personal loans have various purposes — they can be used for debt consolidation, home improvements, major purchases, emergency costs and more. The average personal loan debt in Alabama is $13,892.
Your loan eligibility is affected by different factors, especially your credit score. It may be harder to find a lender if you have bad credit, but it’s not impossible. Below, MoneyGeek lists the steps for choosing the best bad-credit lender in Alabama for you.
Ask Yourself the Important Questions
Before shopping for bad-credit loans in Alabama, ask yourself the following questions to ensure it’s the best financial decision for your situation.
- How much money do you need? Knowing how much money you need will help you determine which lender meets your funding requirements.
- What’s your credit score? Credit score is among the primary factors lenders consider before approving or denying your loan application. A poor credit score may result in higher interest rates.
- Can you afford the monthly payments? Assess your current financial situation to see how much you’ll be able to pay back each month.
- Do you have existing debts? If you already have existing debts, adding another one may not be advisable unless it’s to consolidate at a better rate.
- Is your debt manageable through other means? It’s important to explore other ways to manage your debt or finance a major expense. Examples include balance transfer cards or personal line of credit.
Do Your Research
A personal loan is a long-term commitment, so you should thoroughly research multiple lenders before narrowing your choices and finding the best option for your needs. Although MoneyGeek’s guide presents the best lenders for those with bad credit in Alabama, our recommendations are for the average borrower and may not fit your unique situation. When researching, pay attention to what each lender offers regarding loan amounts, interest rates and repayment lengths. Note minimum credit requirements and restrictions on fund usage, as well.
Read the Fine Print
It’s easy to miss small details when you’re researching lenders. If you’re still determined to get a personal loan, it’s advisable to read and understand the fine print. Check if your preferred lender charges fees for loan processing, late payments or paying off your loan early, as these will all affect the loan's overall cost. Additionally, confirm if the lender offers a discount for setting up automatic payments. Reviewing the fine print can help you save money in the long run.
Wait
After you've decided on a personal loan lender, it may be tempting to pursue an application immediately. However, it's best to take a step back and wait a day or two before finalizing your decision. Giving yourself room to breathe can help you avoid making a spur-of-the-moment decision you later regret. A personal loan is a huge commitment, so don't take it lightly. Only apply once you're 100% sure it's the best financial decision you can make.
Apply
Once you've covered all your bases, you're ready to submit your loan application. Prepare all the necessary documents that your chosen lender requires. These typically include identification, address verification and proof of income. Ensure that the information in your application is accurate to avoid delays with the loan approval.
Some lenders allow online applications, which is ideal for applicants who want to save time and avoid waiting in line. But there's no harm in calling or visiting your loan provider if the option is available.
What to Do if You Can’t Get a Bad-Credit Loan in Alabama
It can be discouraging when your loan application is denied, especially when it delays purposes like a home renovation project or planning your dream vacation. However, this doesn’t mean the end of your bad-credit loan journey.
You can reach out to the lender and find out why you were denied. For example, your credit score may be too low, or your income was insufficient. You can also see if modifying your application can make it more acceptable, for instance, by lessening the loan amount or shortening the repayment term.
If your lender’s decision is final, you can try looking for another loan from a different lending company. However, MoneyGeek recommends improving the factors that caused your loan application to be denied before doing this. That way, you can avoid another rejection.
Be wary of payday loans when searching for alternative options for a personal loan. They may offer you quick access to cash, but the tradeoff is usually higher interest rates and shorter payment periods.
Calculate Your Monthly Payment
A personal loan is borrowed money you pay back monthly with interest. Use MoneyGeek’s personal loan calculator to estimate your monthly payment and decide if your budget can accommodate it.
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FAQs About Bad-Credit Loans in Alabama
There’s a lot to consider when applying for a personal loan. MoneyGeek answered some commonly asked questions below to help you better understand bad-credit loans in Alabama.
Methodology
MoneyGeek analyzed more than 30 personal loan lenders using at least 35 individual data points across six key categories: loan affordability, accessibility, customer service, consumer friendliness, lender transparency and flexibility.
For each category, we took into account several individual data points that carry significant weight when selecting a personal loan lender. These include loan amounts, APR ranges, application fees, minimum credit score and income amount, repayment lengths and disbursement time.
MoneyGeek values the consumer, so we also considered each lender’s business rating, customer support and additional features that could offer you a better experience — like loan pre-approvals, mobile apps and flexible payment options.
After careful consideration, our top picks are chosen with your best interests in mind. Our recommendations are meant to help you make smarter financial decisions when choosing a personal loan lender that meets your particular needs.
sources
- Upgrade. "Are There Any Fees?." Accessed September 29, 2022.
- Upgrade. "Personal Loans Up to $50,000." Accessed September 29, 2022.
- Upgrade. "What Are the Different Uses for a Personal Loan?." Accessed September 29, 2022.
- Upstart. "A Personal Loan for Your Personal Needs." Accessed September 29, 2022.
- Upstart. "This Is Upstart." Accessed September 29, 2022.
- Upstart. "What Fees Am I Charged?." Accessed September 29, 2022.
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
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