Payday Loans in Alabama

Yes! Payday loans are available in Alabama, both through store-based providers and online. If you decide to use a payday loan to cover an urgent expense, be sure to get one from a licensed lender that complies with all applicable payday loan regulations in the Alabama.

How Much Money Can I Borrow With a Payday Loan in Alabama?

The Alabama Deferred Presentment Services Act covers the key aspects of payday lending in the state. The maximum amount you can borrow based on that law is $500, though you can borrow less than that amount. Also, you are only permitted to have a single payday loan from a given lender in Alabama at a time. Once you pay that loan off, there is a short cooling off period during which you can’t borrow from that lender again. The law also limits the number of rollovers that payday lenders may give to customers, currently setting a maximum of one rollover per customer and lender.

When Do I Need to Pay Back My Alabama Payday Loan?

The minimum term for an online payday loan in Alabama is at least 10 days and the maximum term is 31 days. If you are unable to pay the full amount by the end of the term, you may be able to negotiate an extension of your repayment schedule.

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How Much Does a Payday Loan Cost in Alabama?

Payday lenders in Alabama are allowed to charge a fee up to 17.5% of the amount borrowed for the payday loan. For example, if a borrower takes out a $500 payday loan, the lender can charge up to $87.50 for lending the money. Depending on the term of the payday loan, that fee can translate to an Annual Percentage Rate (APR) of 400% or more. That’s why payday loans are considered an expensive way to borrow!

What Happens If I Don’t Pay My Alabama Payday Loan?

Like other unsecured loans, when failing to pay off your payday loan, there are a number of things your lender can do:

• As mentioned above, the lender may offer to roll over or extend your repayment date for a fee. If you have reached the maximum number of rollovers allowed in Alabama, the lender may offer you a repayment plan with equal monthly payments.
• If you continue being late on your payments, the lender may report your late payments to TransUnion, Equifax, Experian, or another credit bureau. Your credit may be negatively affected as a result.
• If you made a loan payment that is returned by your bank due to insufficient funds in your bank account, the lender may charge you a returned item fee for the failed payment.
• Lastly, payday lenders in Alabama may initiate default collection proceedings, which could ultimately include even include taking you to civil court.

How Does A Payday Loan Rollover Work in Alabama?

When you rollover your loan, it extends the amount of time you have to pay the loan back. Normally, payday lenders in Alabama will charge a fee when allowing borrowers to roll over a payday loan – legally, lenders can charge a fee up to the 17.5% of the loan amount. At the end of the new term, you may have to pay the remaining balance in full as a one-time payment or in regular installments, since only one rollover is allowed per customer.

What Happens If My Online Payday Lender Sues Me?

If you are sued by your online payday lender for the outstanding amount of your Alabama payday loan, you’ll have to go to court and plead your case in front of a judge and explain why you shouldn’t have to repay your loan in the agreed-upon time. If the judge sides against you, you will be forced to repay the loan. The court may order things like having money taken out of your paycheck to have it sent to the lender, which is known as a wage garnishment.

Are There Alternatives to Online Payday Loans in Alabama?

If you are considering an online payday loan in Alabama, know that there are several alternatives that you can consider to apply for the cash you need:

• Credit card cash advance: If you have a credit card, you may be able to access cash up to your existing credit limit.
• Unsecured personal loan: Several companies offer unsecured loans in the state of Alabama. Eligibility criteria, loan amounts and rates vary widely by lender, with some focusing on applicants with excellent credit, while some offer personal loans even for borrowers with bad credit.
• Title loan: Alabama car title loans can be a viable alternative if you own a vehicle with sufficient equity, and have enough income to afford a title loan payment.¹ Similar to payday loans, title loans are primarily designed for borrowers with less-than-perfect credit who need a loan that’s fast and convenient.

How Do Title Loans Differ from Online Payday Loans in Alabama?

Similar to online payday loans, you can use your title loan money for a financial emergency, unexpected expenses, etc. Unlike online payday loans, title loans use a qualifying car title in your name to secure the loan. You can still keep and drive your car during while you make payments on your loan, but if you fall behind on your payments, you can ultimately risk access to your vehicle.

Comparison of Car Title Loans to Payday Loans in Alabama

Below are the key differences between payday loans and title loans in Alabama. Whether you live in a large city like Huntsville, Birmingham or Montgomery, or a small town in the countryside, knowing these differences may help you decide which options is better for your needs.

How To Get a Title Loan Serviced by LoanMart:

As you’ve learned, a title loan can be a way to get funds in an emergency. It can have a number of advantages over an online payday loan in Alabama, especially for borrowers who are looking for a larger loan amount at competitive interest rates.¹ You can keep and drive your car for the duration of the loan while you make payments, and because there is not always an emphasis on credit, the loan application process can be quick and easy.¹

With title loans serviced by LoanMart, you may be eligible for a title loan up to $15,000 when you have a qualifying car title in your name in Alabama. Due to the streamlined application process, the turnaround time from submitting your information to receiving your loan may be less than 24 hours.³

There are two convenient ways you can apply for a title loan serviced by LoanMart:

1. Call us at 855-422-7412
2. Apply online without leaving your home

Once you know how you want to get in touch, just follow these steps to get the money you need:

1. Complete the application¹
2. Submit the required title loan documents
3. Sign your title loan agreement
4. Collect your funds¹