According to a recent study, Alabama has the 4th lowest cost of living in the United States with a cost of living index of 88.1 out of 100. Housing, groceries, utilities, transportation, and healthcare all tend to be more affordable in Alabama than in many other areas of the country.
But inflation has affected the entire country, including the Heart of Dixie. As prices continue to rise, so too does the cost of living in Alabama. Because of this, many residents use personal loans to help cover certain expenses and emergencies.
If you need a personal loan in Alabama, you have several options ranging from traditional lenders like banks and credit unions to online private lenders. Even if you have bad credit or limited credit history, you could still qualify for a loan that meets your needs.
The good thing about personal loans for bad credit is that they’re usually easy to get and you can use the funds for nearly anything. Whether you need to repair your vehicle, cover surprise medical bills, or pay for a short-term expense like marriage, a personal loan could help.
If you’re currently living in Alabama and need fast cash, apply for a personal loan through Jora now. All you need is an internet access and a few minutes to complete the fully online application. And if you apply and are approved before 10:30 a.m. CT on a business day, you could receive up to $4,000 the same day.*
Alabama has grown steadily over the past decade or so. From 2010 to 2021, the state grew from 4,785,514 to 5,039,877 residents. That’s a 5.3% increase in population.
Although the state is not growing as quickly as others— like Texas—this is still significant growth. Many people are moving to Alabama in pursuit of a more affordable lifestyle and better job opportunities.
The state’s current unemployment rate is 2.8%, which is far lower than the national average of 3.7%. In the past year, Alabama also added 56,000 new jobs across various industries—a record-high year-over-year job growth.
Still, life happens. Even with lower prices, things come up that are out of your control but can make it difficult to keep up with everyday expenses or bills. That’s where personal loans come in.
If you’re an Alabama resident seeking financial help through a loan, it’s important to know your options. That way, you’ll be prepared if and when the time comes. With that said, here are the most common types of loans in Alabama for borrowers who need cash fast:
With that said, here are the most common types of loans—including traditional and alternative options—in Wisconsin:
Several other types of credit exist in Alabama, including personal lines of credit, cash advances, home equity loans, and home equity lines of credit (HELOCs).
If you need a personal loan that you can pay back in monthly installments and does not require good credit, a Jora loan could be right for you.
Every loan comes with its own requirements. Bad credit loans—like title or payday loans—tend to have more relaxed loan requirements than other options like personal or installment loans.
Whichever type of loan you’re considering, it’s good to come prepared. This means getting an idea of what lenders are looking for, as well as how your credit score, income, and other factors stack up.
With that in mind, here’s what you need to consider before applying for a loan in Alabama.
Your credit score depends on various factors, such as your payment history, credit utilization, and the average age of all open accounts. Unless you’re applying for a no-credit-check loan, most lenders will check your credit score when deciding whether to approve your application.
The better your credit score, the better your odds of getting the loan you need with the best interest rates and repayment terms. If you have good credit, you could theoretically save hundreds or thousands of dollars in interest payments over the life of the loan.
If you have not checked your own credit score in a while, now’s a good time to do so. You can request a free copy of your credit report from TransUnion, Experian, and Equifax online. Once you have it, review it to see where you can improve. Also, check for any errors that might be bringing down your score.
Before you take on a new loan or line of credit, it’s important to make sure you can afford the new monthly payments. Some lenders will also check for things like how much you pay each month for bills and other debts. If you do not have enough money left over each month, you might not qualify for a new loan. Or you could end up dealing with more debt than you can manage.
In Alabama, the average median household income is $54,943. This is about $4,579 a month before taxes. Say you spend $4,200 a month on things like rent, utilities, and other debts or expenses. This leaves you with just $379. Now, ask yourself if this is enough money for you to take on another loan payment. If is it not, you might want to wait to apply.
Most lenders will also check your income and employment status as part of their lending decision-making process. Some will require you to be employed at least part-time, while others will accept non-traditional forms of income like alimony or self-employment income.
Lenders might ask you to upload or provide certain documents when applying for a loan. This could include a letter of employment, recent bank statements, W2 forms, or income tax returns. Be prepared with these documents before starting a formal loan application.
If you’re applying for a personal loan but have limited income or poor credit, you might need to provide proof of assets like a house or money in savings. Having additional assets like these can boost your approval odds.
And, if you’re considering a secured loan, the lender might require you to put up an asset as collateral. This lowers the risk to the lender since they can take the asset if you default on payments.
Applying with a cosigner could also improve your chances of qualifying for a personal loan, especially if you’re having trouble getting one on your own. A cosigner with good credit and a steady income could also help you get better rates and terms. Not all lenders accept cosigners or offer joint loans, so choose one that does.
Traditional and alternative lenders will often indicate their typical loan rates, terms, amounts, and eligibility requirements online. However, you might not know your exact rates or terms until you’ve gone through the application process.
Short-term loans like payday loans often have higher annual percentage rates (APRs) and are more expensive. Other loans, such as Jora’s installment loans, come with longer terms and lower monthly payment amounts. This makes them easier to manage than other options.
The APR and loan term both help determine your monthly payment amount, as well as how much you’ll pay in interest. Before applying for a loan, use an online calculator to get an estimate of what your monthly payment will be—and the total loan cost.
Make sure the lender is licensed to offer loans in your state—in this case, Alabama. If they are not licensed, look for a different lender.
You should also check the lender’s reputation on websites like Trustpilot and the Better Business Bureau (BBB). These sites are helpful as they can give you a good idea of what other people are saying about the lender. On Trustpilot, for example, Jora has an excellent rating with more than 1,000 reviews.
Knowing what other people have experienced with a specific lender can give you a better idea of whether they’re legitimate. It can also help you choose the right lender for you.
Besides credit score and income requirements, most lenders will also require some or all of the following:
If you want to get a personal loan in Alabama, you have a couple of options. The traditional method is to go through a bank or credit union. These types of lenders might require you to apply in person, though some have online applications, too.
But if you do not live near a bank or credit union, or if you’d rather apply online, you can go through a private direct lender like Jora. These lenders typically have a simple, free, and secure application process that you can complete from the comfort of your home.
Before you apply for a loan in Alabama, though, ask yourself the following questions:
Once you’ve decided that now is the right time for a loan, the next step is to find a licensed lender in Alabama. You could use an online marketplace to compare several lenders at once. Or you can search online for lenders in your area.
See what each lender offers in terms of repayment periods, APRs, fees, and so forth. Make sure the loans they provide fit what you need. Also, check the lender’s eligibility requirements and see if you qualify for a loan through them. If you have not already done it, review your credit score and income.
If you’re thinking about taking out bad credit loans, like installment loans, here’s how Jora’s process works:
Certain lenders will perform a soft inquiry, or soft credit check, that lets them see your credit history and score. This will not affect your credit, but it will give you an idea of what you might qualify for and at what rates. Other lenders will only perform a hard credit check, which could hurt your score temporarily.
Personal Loans There are two main types of personal loans:
Unsecured and secured personal loans come with some level of financial risk. If you do not make payments on time, you could end up with late charges or a penalty APR. You could also hurt your credit score. And, if you do not bring your account current, it could end up in collections.
Consider the risks and advantages of taking out a personal loan before getting one. Make sure you can comfortably afford the monthly payments.
Your credit score has a big impact on your financing options. It can affect your repayment terms, loan amounts, and interest rates. It can also impact the types of loans you can get.
A person’s credit score ranges from 300 to 850. If you have a credit score of at least 670, it’s generally considered “good” credit. The higher your credit score, the better your approval odds and loan options.
If you have bad credit or limited credit history, you might not qualify for most forms of financing. This is because lenders check your credit and use it to determine how much of a risk you are—and how likely you are to repay what you owe. The following factors make up your credit score:
Negative marks and errors on your credit report can also affect your credit score. The most common types of negative marks are bankruptcies, accounts in collections, and foreclosures. These items can remain on your credit report for 7 to 10 years, depending on the type.
About 20% of consumers have found an error on their credit reports. Anything from a misspelled name to a duplicate account or incorrectly reported missed payment can bring down your credit score. If you find an error, like an account you do not recognize, dispute it with the reporting credit bureau.
Alabama loans range from personal loans like installment loans for bad credit to payday loans. You can use the funds for things like car repairs, a home improvement project, or a surprise medical bill. This can help you stay afloat until you get your finances—and credit—back to where you need them to be.
Before you apply for a personal loan in Alabama, compare different lenders and see what they offer. Be prepared to provide some basic identifying information, bank account details, and income or employment information. If you’re not sure what your credit score is, request your credit report early or do a fast credit check of your own to see what you might qualify for.