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: Furniture
Average Price**: $400 – $10,000
Product: Mattresses
Average Price**: $250 – $3,000
Product: TVs
Average Price**: $300 – $3,500
Product: Refrigerators
Average Price**: $1,000 – $2,500
Product: Washers and Dryers
Average Price**: $300 – $2,000
*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
Q: What Kinds of Loans for Bad Credit Can You Get in Alabama?
A: Unsecured and secured personal loans, car title loans, traditional auto loans, home loans, and payday loans are all available lending options for potential borrowers to choose from. Currently, Alabama has few restrictions on lending options* for residents, so be sure to research the loan type you may be considering.
Q: What’s Considered “Bad Credit”?
A: Traditional financial institutions consider credit scores of 580 or below to be fair to poor credit. Often, this credit score may mean you might be denied with traditional lenders, but alternative lenders tend to look at more than just your credit score. With some alternative lenders, credit score is a factor considered, but just having less-than-perfect credit or no credit does not mean you’ll be automatically denied.
Q: Where’s the Best Place to Get a Bad Credit Loan?
A: Alternative lenders are an option for potential borrowers to obtain a bad credit loan. But keep in mind the best place to get a loan with bad credit depends on your specific situation and financial needs. Bad credit loans are typically obtained from banks or other financial institutions such as payday loan companies and alternative lenders.
Q: What’s the Maximum Amount I Can Get with a Bad Credit Loan?
A: Maximum amounts will vary by lender, and the amount you’re able to borrow may be determined by a variety of factors. To find out how much you may be able to qualify for in our network of partner stores, apply online* today.
Q: How Can I Apply for a Bad Credit Loan?
A: You can easily apply, even if you have bad credit, on our site by using our find a store near you* tool. To apply for a payment solution* within our network of stores, simply visit our website to locate a store near you and click “Apply” to begin the online application process.
*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.