Best Loans for Bad Credit in Alabama for 2024

Happy Money offers the best loans for bad credit in Alabama, with a MoneyGeek score of 94 out of 100. It excels in customer service, reputation and application process.

Updated: November 27, 2024

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Happy Money, with a MoneyGeek score of 94 out of 100, is the best personal loan lender for bad credit in Alabama. It stands out for its outstanding customer service, competitive interest rates, credibility and transparency. As the runner-up, Avant is recognized for its broad payment options, quick application and approval process, and strong customer service, holding a MoneyGeek score of 92 out of 100.

MoneyGeek reviewed four personal loan lenders in Alabama that disclosed minimum credit score requirements, ranging from 580 to 640, to pinpoint the best personal loans for bad credit in the state. While these highlighted lenders are solid choices, Alabama Credit Union, Alabama Central Credit Union and MAX Credit Union also present other viable options for localized personal loan services in Alabama.

Best Bad CreditLendersAlabama

2024

Best Bad Credit Loans in Alabama

Best Overall - Happy Money

Runner-Up - Avant

MoneyGeek scored personal loan lenders in Alabama that explicitly disclose their minimum credit score requirements on their websites to find the best personal loans for bad credit. Only 12% of lenders disclose this information.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which meets Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in Alabama. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in Alabama

Happy Money

94MoneyGeek Score
11.72% to 17.99%APR Range
640Minimum Credit Score
$5,000 to $40,000Loan Amount Range
24 to 60 monthsRepayment Terms

Happy Money is MoneyGeek's pick for the best personal loan lender for bad credit in Alabama with a MoneyGeek score of 94 out of 100. It is a fintech company working with federally insured lending partners to originate personal loans. For borrowers with bad credit, it requires a minimum credit score of 640, offers a loan amount range of $5,000 to $40,000 and provides funds as soon as the next day. Happy Money directly pays creditors, simplifying debt consolidation and not levying multiple fees. Applicants should know it charges an origination fee and only offers loans for debt consolidation.

Pros

Doesn't charge late, early repayment, bounced checks, failed ACH or other fees
Flexible repayment terms from 24 to 60 months
Offers to pay creditors directly

Cons

Only offers loans for debt consolidation
Charges an origination fee
$40,000 borrowing limit

Runner-Up for Best Bad Credit Loan Lender in Alabama

Avant

92MoneyGeek Score
9.95% to 35.99%APR Range
580Minimum Credit Score
$2,000 to $35,000Loan Amount Range
12 to 60 monthsRepayment Terms

Avant is the runner-up for the best bad credit loan lender in Alabama with a MoneyGeek score of 92 out of 100. It collaborates with WebBank — a state-chartered FDIC member bank — to originate personal loans. An accessible minimum credit score of 580, loan amounts from $2,000 to $35,000 and the possibility of next-day fund receipt make Avant a considerable option. Its flexibility in repayment terms and the ability to check loan options without impacting credit scores stand out. However, applicants should note the administration fee of up to 9.99% and the potential for late and dishonored payment fees.

Pros

Doesn't charge a prepayment penalty
Flexible repayment terms between 12 to 60 months
Offers next-day funding

Cons

Charges an administration fee up to 9.99%
Low borrowing limits at $35,000
Doesn't allow co-signers or joint applications

Calculate Your Monthly Loan Payment in Alabama

In a recent Credit Industry Snapshot report by TransUnion, the average new account balance for personal loans in Alabama stands at $4,722. When you take out a personal loan, which is typically an unsecured loan, you agree to pay back the principal amount and interest over a specified period, typically in monthly installments. Understanding your monthly payments is crucial to managing your finances effectively if you have a less-than-perfect credit history.

To accurately estimate your loan payments, consider using MoneyGeek's personal loan calculator. This tool can help you plan your budget by clearly showing your monthly financial obligations.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 22, 2024

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Best Bad Credit Loans by Credit Score in Alabama

With an average credit score of 692, Alabama's average is below the national average of 715 based on Experian data.

Some lenders in Alabama consider applicants with low credit scores but typically charge higher interest rates and offer less advantageous terms. The table below shows which personal loan lenders are accessible in Alabama based on your credit score.


Avant	580	9.95% to 35.99%	$2,000 to $35,000	12 to 60 months	Next Day	92
Prosper	600	8.99% to 35.99%	$2,000 to $50,000	24 to 60 months	1 business day	90
Achieve	620	8.99% to 35.99%	$5,000 to $50,000	24 to 60 months	Same Day	92
Happy Money	640	11.72% to 17.99%	$5,000 to $40,000	24 to 60 months	3 to 6 Business Days	94

What to Do if Your Loan Application Is Denied in Alabama

It's not uncommon to face a personal loan application denial in Alabama, but this doesn't halt your borrowing journey. Here are some measures to enhance your chances for approval on future applications.

1
Find out the reason for the denial
If you are denied a personal loan, it could be due to a poor credit score, a high debt-to-income ratio, insufficient income or mistakes in your application. Review the reasons provided by the lender to address your areas of weakness and reduce the likelihood of future denials.
2
Modify your loan terms
Consider speaking to your lender about changing the loan amount or repayment terms to improve the chances of approval for your personal loan.
3
Find another lender
Lenders have distinct criteria for loan approval. Compare lenders and evaluate key factors to choose one that aligns with your needs and credit profile.
- Eligibility requirements: Verify each lender's criteria for credit scores, income levels, debt-to-income ratios and employment history.
- Interest rates: Search for lenders offering competitive interest rates, which is beneficial for applicants with less than perfect credit.
- Additional fees: Consider lenders' origination, late payment, and prepayment fees. Avoiding these can be advantageous, especially for those with lower credit scores.
- Loan terms: Assess the various repayment periods lenders provide for personal loans, considering the impact of short- and long-term agreements.
- Customer service and reputation: Research lenders to understand their customer service quality and overall reputation before deciding.
4
Look for alternatives
If personal loans are not currently available to you due to a low credit score, explore other options such as credit builder loans, secured loans or credit union loans that may accommodate borrowers with bad credit.
5
Improve your credit score
Working towards improving your credit score can ultimately enhance your eligibility for a personal loan. Strategies include making on-time payments, reducing debt and regularly checking your credit report for errors.

EXPERT TIP

Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:

Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.

—Alvin Yam, CFP

FAQ About Bad Credit Loans in Alabama

When shopping for personal loans in Alabama, it's common for borrowers, especially those with bad credit, to have questions or concerns. To assist in this process, we compiled answers to some frequently asked questions, offering clarity and guidance to help you make well-informed decisions.

Who is the best personal loan lender for bad credit in Alabama?

Happy Money is recognized as the best personal loan lender for bad credit in Alabama with a MoneyGeek score of 94 out of 100.

Which lender in Alabama has the lowest APR rates for personal loans?

The lenders with the lowest starting APRs are Achieve and Prosper, both offering a rate of 8.99%. Typically, only borrowers with excellent credit profiles are likely to receive this rate.

Which lender in Alabama has the lowest minimum credit score requirement for personal loans?

Avant has the lowest minimum credit score requirement in Alabama, which is 580.

How to apply for a personal loan for bad credit in Alabama?

To apply for a personal loan with bad credit in Alabama, start by checking your credit score and researching lenders who specialize in bad credit loans. Online lenders, credit unions and some banks offer these types of loans. Compare loan terms, interest rates and fees to find the best option.

Complete the application either online or in person, providing accurate information and documents like proof of income, identification and bank statements. Some lenders may require a co-signer or collateral. Once approved, review the loan agreement carefully before accepting the terms and receiving the funds.

How long does it take to get a bad credit loan in Alabama?

The time to receive funds from a bad credit loan in Alabama depends on the lender. Some lenders offer same-day funding, while others may take from the next business day up to a week.

Can I pay off my personal loan early in Alabama?

Yes, you can pay off your personal loan early in Alabama. It is important to check with your lender about any potential prepayment penalties.

Is there a difference between personal loans and installment loans in Alabama for bad credit?

In Alabama, personal loans and installment loans for bad credit are the same, both providing a lump sum that is repaid over time with fixed payments.

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About Zachary Romeo, CBCA

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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sources

Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 11, 2024.
TransUnion. "Credit Industry Snapshot." Accessed April 11, 2024.

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.