MoneyGeek evaluated more than 30 data points to determine the lenders with the best debt consolidation loans in Alabama. We analyzed what each company has to offer, including loan amount ranges, repayment terms, interest rates and fees. Additionally, we looked into the factors that could affect your chances of getting a loan approval, such as minimum credit score and gross income.
Top Lenders & Best Rates for You
Best Debt Consolidation Loans in Alabama of 2024
Updated: February 14, 2024
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WHAT WE’RE GEEKING OUT ON
- Best Overall Debt Consolidation Loan Lender in Alabama
- Runner-Up for Best Overall Debt Consolidation Loan Lender in Alabama
- Best Debt Consolidation Loan Lender for Bad Credit in Alabama
- Best Debt Consolidation Loan Lender for Good Credit in Alabama
- How to Choose the Right Personal Loan for You
- What to Do if You Can’t Get a Debt Consolidation Loan in Alabama
- Calculate Your Monthly Payment
- Frequently Asked Questions About Personal Loans in Alabama
Best Debt Consolidation Loan Lenders in Alabama
Best Overall Debt Consolidation 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
MoneyGeek identified Upgrade as the lender offering the best debt consolidation loans in Alabama. The company was launched in 2017 to offer lending solutions to customers in 50 states.
With Upgrade, you can streamline multiple payments into a monthly payment that’s easy to manage and pay off. It offers debt consolidation loans ranging from $1,000 to $50,000, and interest rates between 5.94% and 35.47%. If you need a larger loan to consolidate debt, this lender may not be for you.
While Upgrade doesn’t have prepayment penalties, it charges a 2.9% to 8% origination fee and late fee of up to $10. To qualify for an Upgrade debt consolidation loan, you need a credit score of 560. Once approved, you may get your funds on the same day.
Pros
- No prepayment penalty
- Fair credit score requirement
- Conducts soft credit inquiry
- Same-day funding
Cons
- Maximum loan amount is $50,000
- Has origination fee
- Has 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
Runner-Up for Best Overall Debt Consolidation Loan 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
For debt consolidation loans, Truist is the second-best loan lender in Alabama. The company was formed after BB&T and SunTrust merged in 2019. As of June 2021, it ranks as the 10th-largest bank in the U.S., with $509 billion in assets.
Truist allows you to borrow as little as $3,500 and as high as $50,000, with repayment options ranging from six months to five years. It doesn’t charge origination fees and prepayment penalties. Note, however, that Truist offers APR rates starting at 8.14%.
Truist doesn’t require a minimum credit score, so Alabama residents shouldn’t have a problem getting approved as long as they’re qualified. Plus, you can get your funding as early as the next day, which is ideal if you intend to use your loan for emergencies.
Pros
- No origination fee
- No prepayment penalty
- No minimum credit score requirement
- Next-day funding
Cons
- Conducts hard credit checks
- High starting APR rates
- Maximum loan limit is $50,000
- APR range: 8.14%–18.99%
- Minimum/maximum loan amount: $3,500–$50,000
- Minimum credit requirements: None
- Repayment terms: Six–60 months
- Time to receive funds: Next day
Best Debt Consolidation Loan 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
Upstart is the best option for Alabama residents who want to take out a personal loan and have bad credit. It only requires a minimum credit score of 300, which is among the lowest available. Additionally, it conducts soft credit inquiries so as to not hurt your credit score.
Borrowers can get loans ranging from $1,000 to $50,000 from Upstart. This lender isn’t ideal for your needs if you’re looking for a larger loan. It’s also not an option for those who don’t want to pay origination fees.
Upstart is an artificial intelligence (AI) lending platform launched in 2012. To date, it has originated $25.4 billion in loans.
Pros
- Low credit score requirement
- No prepayment penalty
- Conducts soft credit checks
- Next-day funding
Cons
- Has origination fee
- Low loan amount limits
- High maximum interest rate
- APR range: 3.22%–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
Best Debt Consolidation Loan 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
With SoFi, you can take out loans from $5,000 to $100,000. They don’t come with origination fee, prepayment penalty and late fee. You can also get a 0.25% discount for setting up automatic payments.
To qualify for a SoFi loan, you need a credit score of at least 680. You must also be employed or have an offer of employment to start within the next 90 days. This lender may not be the best option for you if you can’t meet these requirements.
It’s worth noting that SoFi has an unemployment protection program, which allows you to temporarily modify your payments if you get laid off. This company has been around since 2011 to offer consumers various financial products, including personal loans.
Pros
- 0.25% autopay discount
- No origination fee
- No prepayment penalty
- No late fee
- Conducts soft credit pulls
Cons
- No co-signers
- Requires a minimum credit score of 680
- APR range: 5.74%–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
How to Choose the Best Debt Consolidation Loan in Alabama for You
In Alabama, the average personal loan debt is $13,892, with interest averaging 8.85%. One of the most common reasons for taking out a personal loan is debt consolidation. You use your new loan (ideally, one with a lower APR) to pay off your other debts. This way, you can save money on interest and get out of debt faster.
Before pursuing a loan application, you need to consider several factors, such as your credit score and existing debts. MoneyGeek outlined some steps that you can follow when applying for a debt consolidation loan in Alabama.
1
Ask Yourself the Important Questions
Before anything else, you need to ask yourself the following questions to ensure you’re making the right financial decision:
- How much funding do you need? Make sure you know how much money you need for consolidating debt so you can find the best lender for your situation.
- What is your credit score? Lenders consider your credit score when reviewing your loan application. Make sure your credit score meets the minimum requirements to avoid getting denied.
- Can you afford the monthly payment? Consider your current financial situation and determine if you can afford the monthly payment to avoid facing late fees and ruining your credit score.
- How much debt do you already have? If you’re already paying multiple debts, adding another one may put you in a tight financial spot.
- Is your debt manageable through other means? Look into other options for debt consolidation, such as balance transfer credit cards, to see if they’re better suited for your needs and situation.
2
Do Your Research
Don’t underestimate the value of doing your own research. MoneyGeek created this guide to provide relevant information on debt consolidation loans in Alabama. However, our recommendations may not cover your unique situation. That’s why it’s best to explore other options to find the best lender for you.
Make sure to look into what each lending company has to offer in terms of loan amount, interest rate and repayment term. You also need to gather information about its minimum requirements on credit score, debt-to-income ratio and gross income. Failing to meet a lender’s criteria can significantly affect your chances of getting a loan approval.
3
Wait
Once you’ve obtained all the necessary information, take a step back before deciding on your best option. This way, you won’t be a victim of confirmation or recency bias. It’s advisable to wait a day or two so you’re more objective in determining the right lender for your needs. Note that regardless of the amount, a debt consolidation loan is a large financial commitment. You need to be sure that you can live up to its accompanying responsibilities before taking out a loan.
4
Read the Fine Print
When conducting your debt consolidation loan research, it’s common to overlook its crucial elements. After you’ve chosen a lender, read the fine print thoroughly. Aside from the fees and rates that are explicitly stated in its terms and conditions, keep an eye out for any hidden fees and loan restrictions. By reviewing the fine print, you can catch any small detail you missed during your research and save you money in the long run.
5
Apply
Once you’ve got your bases covered and you’re confident about your decision, it’s time to submit your loan application. Most lenders require you to provide specific documents and information, such as identification, proof of income and residence verification, during the application process. If online application is allowed, you can choose that option, but there’s no harm in calling your lender or visiting a brick-and-mortar location if it’s possible.
What to Do if You Can’t Get a Debt Consolidation Loan in Alabama
Not getting approved can be discouraging, but it doesn’t mean your journey to getting a debt consolidation loan in Alabama is over. Debt consolidation loan denials happen due to various reasons, including a low credit score or an insufficient income.
MoneyGeek suggests getting in touch with your lender to learn why your loan application was rejected. You can also try asking if anything about your loan details that you can modify. Perhaps shortening your loan term or lowering your loan amount may change their mind.
If your lender’s decision is final, you can always look for a loan somewhere else. However, this move isn’t advisable until you improve the factor that caused your loan application to be denied in the first place.
Also, try to avoid payday loans. They may be tempting if you need quick access to cash, but they come with disadvantages such as higher interest rates and quicker payback periods.
Calculate Your Monthly Payment
Keep in mind that you need to pay back a debt consolidation loan in monthly installments, plus interest. Make sure to calculate your monthly payment first to determine if your budget can cover it, especially if the loan has been pre-approved by your chosen lender.
FAQs About Debt Consolidation Loans in Alabama
The best debt consolidation loan in Alabama will be based on your personal needs as well as credit score and income. MoneyGeek answered some frequently asked questions to help you find the best option for you.
What is the best debt consolidation loan lender in Alabama?
Upgrade offers the best debt consolidation loans in Alabama.
Which lender in Alabama has the lowest interest rate for debt consolidation?
I’m Upstart provides the lowest interest rate in Alabama. You can get a rate as low as 3.22%, depending on your profile.
What kind of debts can I not use my debt consolidation loan for in Alabama?
Some lenders impose restrictions on their fund usage. Be sure to ask your lender for its complete list of restrictions before applying for a debt consolidation loan.
How much debt can I consolidate in Alabama?
This will depend on your lender. Typically, it can range from $1,000 to $100,000 in Alabama.
How long does it take to get a debt consolidation loan in Alabama?
How fast you receive your loan will also depend on your lender. Some disburses funds on the same day, while others can take up to two days.
Can I pay off my loan early in Alabama?
You can choose to pay off your loan early, but some lenders charge a penalty. Before applying, make sure to read the fine print and check if your lender has prepayment fees.
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
- Upgrade. "Debt Consolidation Loans." Accessed June 19, 2022.
- Upgrade. "How can we help you?." Accessed June 19, 2022.
- Truist. "Personal Loans." Accessed June 19, 2022.
- Upstart. "A personal loan for your personal needs." Accessed June 20, 2022.
- Upstart. "This is Upstart." Accessed June 20, 2022.
- SoFi. "Personal Loans." Accessed June 20, 2022.
- SoFi. "Frequently Asked Questions." Accessed June 20, 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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