Bad Credit Personal Loans in Alabama

When it comes to getting a personal loan with bad credit in Alabama, there are some basic things that you might want to know. Fortunately, getting a loan has become more accessible, especially for those with bad credit, in the past few years. If you’re interested in knowing more, read below about getting a loan with bad credit in Alabama:

  • What kind of loans are available in Alabama?
  • What products or services can a loan for bad credit be used for?
  • How can I apply for a bad credit loan in Alabama?

 

Read more about bad credit personal loans in the great state of Alabama.

 

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

Bad Credit Personal Loan Options in Alabama

Bad credit loans offer a potential solution to access necessary products and services. As a note, lending laws and practices vary from state to state, altering which funding options are available for residents. Another thing to keep in mind is that all loans carry their unique advantages and disadvantages. Still, some may work better for your current financial situation than others, depending upon your needs.

 

Alabama is one of the more lenient lending states in terms of laws and regulations, so it’s helpful to be mindful of what type of loan you may need and the conditions that are agreed upon when signing up for a bad credit loan.

Understanding Alabama Loan Types for Bad Credit

In Alabama, legal forms of alternative lending include secured and unsecured personal loans, car title loans, traditional auto loans, home loans, and payday loans. If you don’t have access to enough cash to put down upfront to cover unexpected expenses all at once, using loans may help cover the costs for products or services you may need. Determining which option is right for you will depend on individual circumstances, your budget, and other personal needs.

Bad Credit Personal Loans

Bad credit personal loans are short-term loans ranging from one to five years in length.

 

After an applicant has applied and is approved, typically the lender will then release the requested funds in a one-time lump sum payment. Once the cash transfers to the borrower’s account, the borrower usually repays the lender via fixed monthly payments over a predetermined length of time. This will vary by lender.

Bad Credit Auto Loans

Traditional auto loans are also available in the state of Alabama but may not be easy to access if applying with bad credit or have a less-than-perfect credit score. An alternative option when trying to buy a vehicle may be in-house financing. Used car dealerships may have financing programs that don’t require a credit check. However, it is a good idea to check terms and rates to make sure you understand the conditions of these loans.

Bad Credit Home Loans

While it is true that some mortgage lenders work with applicants who have imperfect credit, it may not be available or accessible for everyone, especially those with less-than-perfect or a lower credit score.

 

To get approved for a home loan through a traditional mortgage lender, the minimum credit score to apply is typically 620, with no recent past-due payments on the borrower’s credit report. Applicants with a credit score of 580 or above (or 500 with a bigger down payment) may qualify through the FHA.

Bad Credit Payday Loans

Like title loans, payday loans are another option for those who are desperate for cash. These loans are also commonly called cash advances. Payday loans are legal in Alabama with some restrictions but consider learning more about payday loans before signing up for one, as they may be costly.

 

Alabama currently imposes a $500 limit on payday loans with a maximum finance charge of 17.5%. Payday loans usually need to be paid back quickly, so consider your needs and financial situation.

What Products or Services Can a Bad Credit Loan Get You?

Obtaining outside financing may help borrowers with bad credit get the items they most want and need. In general, bad credit loan funds may be used for any product or service a borrower may need.

You might be wondering: Is a lease the same as a loan?

Leases & loans are quite different – here’s what you need to know:

  • A loan (or personal loan) is generally a lump sum of funds provided on the recipient’s behalf that is paid back over time (and, like most loans, includes interest.)
  • A lease (or lease-to-own option) allows the recipient to possess the leased item for a pre-determined period of time and includes the option to purchase the item outright. It does not include interest but has leasing fees.

Uses for Bad Credit Loans in Alabama

Bad credit loans can be an avenue that may help residents of Alabama access funding to obtain the necessary products and services they want and need. For instance, broken appliances, A/C systems, and other sudden emergency expenses may be a good use for a bad credit loan. Often these sort of pop up expenses may not be able to wait until the next paycheck to be addressed.

 

Needs like kitchen appliances, washers and dryers, mattresses, and furniture are some examples of what could possibly be financed through bad credit loans. Below you will find the average price for these appliances and essential home items:

Product Average Price** Link
Furniture $400 – $10,000 Find a Store*
Mattresses $250 – $3,000 Find a Store*
TVs $300 – $3,500 Find a Store*
Refrigerators $1,000 – $2,500 Find a Store*
Washers and Dryers $300 – $2,000 Find a Store*

 

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

 

**Retail prices may vary based on extras and the type of product you purchase. For example, a TV can have a retail price as low as $300, however, some models may have a retail price upwards of $3,500 or more.

Alabama Bad Credit Loans in Summary

As you can see, there are many types of loans available for borrowers to consider.

 

Bad credit loans offer a potential solution to access necessary products and services. As a note, lending laws and practices vary from state to state, altering which funding options* are available for residents to choose from. Another thing to keep in mind is that all loans carry their unique advantages and disadvantages, but some may work better for your current financial situation than others, depending upon your needs.

 

To begin the process of applying within our network, find a store near you* to apply and potentially finance the products and services you need today.

 

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

Alabama Bad Credit Loans FAQs

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What Kinds of Loans for Bad Credit Can You Get in Alabama?
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What’s Considered “Bad Credit”?
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Where’s the Best Place to Get a Bad Credit Loan?
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What’s the Maximum Amount I Can Get with a Bad Credit Loan?
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How Can I Apply for a Bad Credit Loan?
© 2025 American First Finance. All Rights Reserved.

1 Application Terms: Your application, including the amount, cost, and approval, is subject to review and is not guaranteed. Applications are reviewed based on data you provide and one or more of the following: identity verification, bank verification, information from a third-party, a credit reporting agency, and/or prior experience through American First Finance (AFF).

Bank Loan: A consumer installment loan is originated by FinWise Bank, a Utah-chartered bank, Member FDIC and sub-serviced by AFF. The loan may be funded by the bank to the merchant for you to purchase item(s) and/or service(s). In some cases, the loan for returning customers is funded directly to your checking account for personal, family or household use.

Retail Installment Sale Agreement: A retail installment agreement is not a loan. You may enter into a Retail Installment Sale Agreement with a merchant to purchase item(s) and/or service(s). AFF may purchase the Agreement from the Merchant. An example of a retail installment transaction based on a 12-month term with 26 biweekly payments: if you make a purchase of $1,000 and make a $50 down payment with an Annual Percentage Rate (APR) of 169.53%, you will have 25 bi-weekly payments of $74.79 and 1 bi-weekly payment of $75.06. The total amount repayable will be $1,944.81 with full, timely payments over 12 months.

Lease: A lease is not a loan or credit transaction. It has several names: lease, lease-to-own, rent-to-own, or rental-purchase. With a lease, you select the item(s) and AFF purchases the item(s) from a Merchant. You take the item(s) home. AFF retains ownership until you pay for the item(s) plus rental fees. Other fees may be included, such as late, non-sufficient funds, delivery, and optional Liability Damage Waiver fees. As a result, the total amount you pay for leasing an item may be more than double the retail cost. You can cancel your lease at any time without penalty by contacting AFF. An example of a 12-month lease with weekly payments: if you lease a $1,000 item and pay a $50 (plus tax) processing fee, you will have 52 additional weekly rental payments of $46.11 to complete your lease. Your total lease payments will be $2,452.21 with full, timely payments over 12 months.

2 You will save money on interest, finance charges, or leasing fees when you pay the discounted amount during the Early Payoff Discount (EPD) period or by exercising the Early Buyout Option (EBO). You must make payments larger than your regularly scheduled payments by the EPD/EBO expiration date. You will make additional payments through the customer portal or by contacting the customer service team.

3 Decisioning may take additional time and not be same day. Additional information may be required.

4 This loyalty program is offered by FinWise Bank. The program provides loyal customers the opportunity to qualify for a lower rate. A rate reduction is valid on new loans only and cannot be applied to existing loans. The rate reduction is only applicable to customers with a prior loan open for at least 150 days, with all payments posted and cleared on time for the life of the loan, and the loan has been paid in full. Maximum of two (2) rate reductions per customer. Loans are originated by FinWise Bank, a Utah-chartered bank, Member FDIC. Terms and conditions subject to change at any time without prior disclosure or notice.

5 Approval is possible without a credit score, but credit may be checked.

6 Testimonials reflect the real-life experiences of customers who used our products and/or services. Individual results may vary.

To report a problem or complaint with this lender, you may write info@americanfirstfinance.com or call customer service at (855) 721-1188.

American First Finance, LLC – NMLS ID 1757007

© 2025 American First Finance. All Rights Reserved.