Personal loans in Alabama are a flexible financing tool for various purposes. There’s usually no collateral required on a personal loan, and funds are delivered to you quickly. Borrowers qualify for a personal loan with their income, credit score, and debt-to-income ratio.
Personal loans are an excellent alternative to payday loans. Interest rates are better, terms allow for a reasonable payback period, and funding times can be almost as fast as a payday loan. Here are our picks for the best online personal loans in Alabama:
Table of Contents
How to find the best personal loans in Alabama
Traditionally, personal loans are regulated by state rate caps. Alabama state law allows payday lenders to charge $17.50 for $100 lent for a 14-day period, which equates to a 456% APR. This is one of the highest rates in the U.S.
A personal loan is a far more affordable tool for borrowing money. Rates are capped at 36% APR in Alabama. Funding times can also be very fast for personal loans.
Alabama does have protections through the Alabama Bureau of Loans and the Alabama State Banking Department. Lenders must follow the Small Loan Act and obtain a license from the Alabama State Banking Department to lend money to borrowers. Consumers may verify lender licenses and submit complaints through the consumer affairs division.
In our comprehensive coverage of personal loans in Alabama, we evaluated local and national lenders. At a glance, here’s what lenders in Alabama are offering:
| Lender | Rates (APR) | Max. loan amount |
| Credible | 7.49% – 35.99% | $200,000 |
| LightStream | 7.49% – 25.49% | $100,000 |
| SoFi | 8.99% – 29.99% fixed | $100,000 |
| Upgrade | 8.49% – 35.99% | $50,000 |
| Happy Money | 11.72% – 17.99% | $40,000 |
| Redstone Federal Credit Union | 11.39% – 18.00% | $50,000 |
| Listerhill Credit Union | 11.99% – 18.00% | Not disclosed |
| EVA Bank | Not disclosed | Not disclosed |
Online personal loans in Alabama
You can access many online personal loan options in the Heart of Dixie, where economic landscapes vary as much as the geography. Residents across Alabama can find a loan suited to their financial circumstances.
With the evolution of online lending, securing a personal loan, whether for consolidating debt, funding a significant purchase, or covering unexpected expenses, has become more accessible than ever. Recognizing the importance of matching borrowers with the right lender, we’ve determined the best online lenders in the state, evaluating all five and awarding each a best-for designation to guide Alabamians toward the most fitting financial solutions for their needs.
Credible
Why Credible is the best marketplace
Credible, an online loan market platform, can provide you with prequalified loan offers from several lenders. Even better, comparing rates using Credible doesn’t affect your credit score.
You can explore and contrast financial products from the comfort of your home and lock in the best rates possible for your loan.
- Compare loans from multiple curated lenders
- Get prequalified loan offers in as little as 2 minutes
- Get funded within a few business days
- No option to apply for joint loans
| Rates (APR) | 6.99% – 35.99% |
| Loan amounts | $1,000 – $200,000 |
| Repayment terms | 1 – 10 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: Varies
- Minimum income: Not disclosed
- States: Loan partners may not be available in all states
Repayment terms
Credible loans have repayment terms ranging from one to 10 years. Some lenders may charge a prepayment penalty if you pay your loan off early.
LightStream
Why LightStream is the best personal loan for excellent credit
LightStream is a great choice for Alabama consumers with excellent credit. With competitive interest rates and no fees across all loan products, LightStream appeals to borrowers with good-to-excellent credit.
The versatility of LightStream’s loan purposes, from consolidating debts to home renovations, means there’s a loan for any financial project in Alabama.
- Rate match guarantee ensures that you get the best rate possible
- Same-day funding may be available
- Take advantage of a longer repayment term if you need lower payments
- No option to prequalify or check rates with a soft credit pull
- Minimum loan amount is $5,000
| Rates (APR) | 7.49% – 25.49% |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 2 – 12 years |
Eligibility requirements
- Soft credit check? No
- Minimum credit score: 660
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
LightStream offers some of the longest repayment terms of any lender, giving you up to 12 years to repay your loan. You can pay your loan off early, without a prepayment penalty and rate discounts can help bring the cost of your loan down.
SoFi
Why SoFi is the best personal loan for good credit
As an Alabama resident with good credit, you can benefit from SoFi’s attractive benefits, such as its exclusive financial planning services.
- No origination fees, late payment fees, or prepayment penalties
- Check rates in as little as 60 seconds
- Some borrowers may qualify for same-day funding
- Higher minimum loan amount
- Autopay discount is lower than what some lenders offer
| Fixed rates (APR) | 8.99% – 29.99% with all discounts |
| Loan amounts | $5,000 – $100,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 660
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
SoFi personal loans feature terms from two to seven years. If you enroll in autopay, you’ll get a 0.25% rate discount. There’s no penalty if you decide to pay your loan off early.
Upgrade
Why Upgrade is the best personal loan for fair credit
Upgrade is an excellent option for fair-credit borrowers. By allowing cosigners, Upgrade increases the chances of loan approval for Alabamians working to build or repair their credit.
- Choose your monthly payment and loan term
- Joint applications accepted
- Loan funds may be available in as little as 1 day
- Smaller loan maximum limit
- 1.85% to 9.99% origination fee
| Rates (APR) | 8.49% – 35.99% |
| Loan amounts | $1,000 – $50,000 |
| Repayment terms | 2 – 7 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 580
- Minimum income: Not disclosed
- States: All 50 states and Washington, D.C.
Repayment terms
Upgrade loans have repayment terms from two to seven years, and your monthly due date is adjustable to fit your budget. A short-term financial hardship program is available if you’re temporarily unable to manage payments.
Happy Money
Why Happy Money is the best personal loan for credit card debt
Happy Money just might be the perfect match if you’re struggling with credit card debt. It offers a straightforward online application process and plenty of flexibility.
- Send payments directly to creditors
- Choose your loan repayment term and due date
- Free monthly credit score monitoring
- Origination fee from 1.5% to 5.5%
- Not available for uses other than credit card debt
| Rates (APR) | 12.45% – 17.99% |
| Loan amounts | $5,000 – $40,000 |
| Repayment terms | 2 – 5 years |
Eligibility requirements
- Soft credit check? Yes
- Minimum credit score: 640
- Minimum income: Not disclosed
- States: Loans not offered in Nevada or Massachusetts
Repayment terms
Happy Money lets you choose personal loan terms ranging from two to five years, so you can get a payment that reflects your budget. There are no prepayment penalties, and you won’t be charged a fee if your payment is late. Happy Money doesn’t offer rate discounts at this time.
Local personal loans in Alabama
You can also find personal loans from local Alabama lenders. Local credit unions or bank branches might be worth checking out if you like in-person service. Sometimes, local lenders and credit unions can offer competitive rates and potentially have more flexible credit requirements.
If you’re not already a credit union member, you’ll need to meet eligibility requirements and join before you can take advantage of their loan products.
| Lender | Rates (APR) | Max. loan amount |
| Redstone Federal Credit Union | 11.39% – 18.00% | $50,000 |
| Listerhill Credit Union | 11.99% – 18.00% | Not disclosed |
| EVA Bank | Not disclosed | Not disclosed |
How to choose the best Alabama personal loan
You won’t find a single answer if you’re looking for the best personal loan. The best personal loan in Alabama is the one that gives you the best possible terms based on your unique needs and loan application.
Here are my recommendations:
- Prefer in-person help? Choose a local lender.
- Need fast cash? Online lenders may fund quicker.
- Reputable online lenders can be just as safe as banks.
- Online lenders require digital access to your personal and financial info.
- If you’re uncomfortable sharing that online, apply in person.
- Think about how you want to manage your loan—personal contact or online access?
To get there, you’ll want to shop around. These steps can help.
- Understand your goals. Choosing the right lender for the best personal loan depends on what you need most out of a personal loan. Each lender is unique, and some may fit your needs better. Try asking yourself:
- Do you need fast funding?
- Do you prefer to receive a decision online in minutes?
- Would you prefer to get a loan in person?
- Do you need a longer-term or a lower monthly payment?
- Make a short list of contenders. When you’re clear about what you need most from a loan, list lenders to check out. It’s especially helpful if the lender can prequalify you for a loan without a hard credit check (many online lenders do). Still, you can also visit your local bank or credit union to get an idea of their loan offer.
- Get prequalified. Take advantage of the lender’s prequalification tool, if available. It’s helpful to see what interest rate, terms, and amounts you’ll qualify for to compare offers.
- Compare offers. While most will look at the APR, you’ll also want to note any additional fees, term length, conditions of the loan, and other fine print details.
- Apply for the loan that makes the most sense. Don’t get held up by analysis paralysis. There’s no perfect loan or lender, but choose the loan that makes the most sense for you.
If you find through the process that your credit score isn’t high enough for the lender, be sure to pull your full report from annualcreditreport.com to see what may be causing the lower score. From there, you can try to fix the issue or find a lender specializing in personal loans for borrowers with lower credit scores.
Recap of the best online Alabama personal loans
About our contributors
-
Written by Alene LaneyAlene Laney is a personal finance writer specializing in mortgages, home equity, and consumer financial products. A credit card rewards enthusiast and mother of five, Alene enjoys sharing money-saving and money-making strategies.
-
Edited by Amanda HankelAmanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.
-
Reviewed by Eric Kirste, CFP®Eric Kirste, CFP®, CIMA®, AIF®, is a founding principal wealth manager for Savvy Wealth. Eric brings more than two decades of wealth management experience working with clients, families, and their businesses, and serving in different leadership capacities.