Best Personal Loans in Birmingham, AL

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Updated: October 16, 2024

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Avadian Credit Union, the best personal loan lender in Birmingham, Alabama, received a MoneyGeek score of 99 out of 100, offering quality customer service, competitive interest rates and flexible repayment terms; while Laurel Road is the best lender for online personal loans with a MoneyGeek score of 93 out of 100, providing strong customer service, a quick application and approval process, and credibility and transparency about its loan terms and process.

MoneyGeek prioritized local lenders and scored them based on factors like interest rates, loan terms, loan application process, and loan funding to gather our best city recommendations. If you're looking for national lenders, we compiled our top picks in the best personal loans in Alabama.

MoneyGeek analyzed hundreds of lenders based on a rubric that includes APR ranges, loan amounts and repayment terms, among other key areas. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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Our overall analysis was completed in August 2024. Here we considered banks and credit unions with brick and mortar locations in Birmingham, Alabama. We also looked at online-only lenders licensed to do business in the state.

325Lenders Analyzed Nationally

Overall Best Personal Loan in Birmingham, AL

Company logo for Avadian Credit Union
Avadian Credit Union
MoneyGeek Score99
APR RangeFrom 8.49%
Loan Amount RangeUndisclosed
Repayment TermsUp to 84 Months
Time to Receive FundsUndisclosed
Overview

Avadian Credit Union stands out as the best personal loan lender in Birmingham, Alabama, with a MoneyGeek score of 99 out of 100. It offers several appealing features for borrowers. It is federally insured by the NCUA, ensuring your deposits are protected. Additionally, there are no processing or application fees, making the borrowing process more affordable. However, membership is required to apply, which may not be convenient for non-members. Additionally, it charges a late fee ranging from $5 to $25.

Best Online Personal Loan in Birmingham, AL

Company logo for Laurel Road
Laurel Road
MoneyGeek Score93
APR Range9.49% to 24.50%
Loan Amount Range$5,000 to $45,000
Repayment Terms36 to 60 months
Time to Receive FundsWithin 7 Days
Overview

In Birmingham, Alabama, Laurel Road is recognized as the best online lender for personal loans with a MoneyGeek score of 93 out of 100. Its offerings are tailored to meet various needs, extending loan amounts from $5,000 to $45,000 and providing repayment terms between 36 to 60 months. It rewards on-time payments with a 0.25% autopay discount and does not charge origination fees. However, it sets a high minimum loan amount and imposes a late fee of 5% or $28, adding to the cost for those who might face payment delays.

Calculate Your Monthly Payment in Birmingham, AL

The United States Census Bureau reports the median annual household income in Birmingham, Alabama in 2022 is $39,326. Whether your income is above or below this median value, what matters is your ability to afford the monthly loan payments. Use our personal loan calculator to estimate your monthly loan payments and the total cost of the loan by entering the loan amount, rate and terms.

For example, if you take a $10,000 personal loan with a 10% interest rate and three years in repayment terms, your monthly payment would be $323, totaling $3,876 per year. This equates to around 10% of the median annual household income in Birmingham, Alabama.

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Estimate the monthly payment for your loan.

Updated: Nov 21, 2024

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Runner-Up for Best Personal Loan in Birmingham, AL

Company logo for Birmingham City Credit Union
Birmingham City Credit Union
MoneyGeek Score92
APR Range10.80% to 18%
Loan Amount Range$500 to $15,000
Repayment TermsUp to 60 months
Time to Receive FundsUndisclosed
Overview

Birmingham City Credit Union ranks as the runner-up for the best personal loans in Birmingham, Alabama, with a MoneyGeek Score of 92 out of 100. It offers several benefits to borrowers, making it a strong candidate for personal loans. One positive aspect is that it is federally insured by the NCUA, providing an extra layer of security for members. Additionally, borrowers can take out loans as low as $500, which is great for those needing smaller amounts. However, there are some downsides that potential borrowers should be aware of. It charges a loan application fee of $35, which can add to the initial cost burden. Also, membership is required to apply, limiting access to those not already members.

Other Options for Personal Loans in Birmingham, AL

Company logo for Alabama Central Credit Union
Alabama Central Credit Union
MoneyGeek Score88
APR RangeFrom 12.99%
Loan Amount RangeUndisclosed
Repayment Terms12 to 48 months
Time to Receive FundsUndisclosed
Overview

Alabama Central Credit Union is a suitable choice for personal loans in Birmingham, Alabama, receiving a MoneyGeek score of 88 out of 100. It is federally insured by the NCUA and maintains an A+ rating with the BBB. On the downside, potential borrowers should note that membership is required to apply and there are no disclosed rate discounts.

National Lenders With Physical Locations in Birmingham, AL

Borrowers in Birmingham, Alabama looking for the best personal loans who value the personal touch of in-person services offered by national lenders have a selection to consider. Available options in the city include Truist, Wells Fargo, and PNC, ensuring that customers can find a lender that meets their specific needs for personal loans.

PNCUndisclosed$1,000 to $35,0006 to 60 months
Truist8.74% to 17.39%Starting from $3,50024 to 60 months
Wells Fargo7.49% to 23.24%$3,000 to $100,00012 to 84 months

What to Do if You Can't Get a Personal Loan in Birmingham, AL

Your personal loan application in Birmingham, Alabama, can get denied for various reasons, like a low credit score, negative financial history, or an unfavorable debt-to-income ratio. If this happens, follow these steps to navigate this setback.

  1. 1
    Find out the reason for the denial

    Some lenders may deny your loan application due to a poor credit score, high debt-to-income ratio, low income level or errors in your application. Reviewing the reasons helps you improve weak areas and prevent another loan application denial in the future.

  2. 2
    Modify your loan terms

    You can try asking your lender if you can adjust the loan amount or repayment terms to get approved.

  3. 3
    Look for another lender

    Different lenders have varying eligibility criteria for personal loan approval. Shopping around and considering factors such as minimum credit score requirements, interest rates, loan terms, additional fees, and customer service helps you find the best lender for your particular needs and circumstances.

  4. 4
    Explore credit counseling services

    Lenders often look at your debt-to-income ratio when evaluating your loan application. You may consider a credit counseling agency to better manage your credit card debt and develop your budget. You can get credit counseling services from the Financial Counseling Association of America. The National Foundation for Credit Counseling can be another option.

FAQ About Personal Loans in Birmingham, AL

We addressed frequently asked questions about the best personal loans in Birmingham, Alabama, offering valuable insight to aid in your decision-making.

Who is the best overall personal loan lender in Birmingham, Alabama?
What are personal loans used for in Birmingham, Alabama?
What are the interest rates on personal loans in Birmingham, Alabama?
What are the benefits and drawbacks of personal loans?
What are some personal loan red flags to look out for?
How to apply for a personal loan online?
Can I get a personal loan with bad credit in Birmingham, Alabama?
What are the best low-interest personal loans in Birmingham, Alabama?
What is an installment loan? Is there a difference between personal loans and installment loans in Birmingham, Alabama?
Is there a difference between credit union loans and bank loans in Birmingham, Alabama?

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.

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