fbpx

Best Personal Loans in Alabama

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Sometimes the cost of everyday life means you have little left over to save for a large purchase. Blooming interest can make it hard to get on top of debt. A personal loan can be a good solution for either of these situations. You can apply for personal loans through your credit union, your bank or an online lender. Find a lender today using our list of trusted sources.

Best Personal Loans in Alabama Near You:

Best Personal Loans Through a Credit Union in Alabama 

Credit union members benefit from returns usually reserved for shareholders. Joining a credit union means buying into the institution, so you see its profits returned to you in the form of more competitive offerings, like better rates on loans and savings accounts. A personal loan from a credit union can mean paying less in interest over time.

APR
As low as 9.50% fixed or 8.62% variable
Loan Amounts
Up to $50,000

Best for Short-Term Loans: Redstone Credit Union

If you’re eligible to be a member of Redstone Credit Union, you’ll benefit from the dividends and competitive rates as with many credit unions. You’ll also have numerous other member perks, like free financial counseling and discounts. 

There are several types of personal loans on the roster at Redstone. You can use an unsecured Signature Loan to buy a car or recreational vehicle, remodel or repair your house, fund a large expense like a dream vacation or wedding and consolidate debt. Rates are competitive, and terms and approval amounts depend on your credit history.

If you need a quick cash infusion, Redstone has shorter-term loans as well. The Personal Stretch and Save Loan offer amounts between $500 and $1,250 that you can pay off over 6 to 18 months. Redstone places 20% of what you borrow in an interest-bearing savings account. Redstone’s Payday Alternative Loans has a better APR than your average payday loan. You can borrow between $200 and $500 and pay it back within 6 months.

APR
As low as 9.99%
Terms Offered
Up to 60 months

Best for Building Credit: All In Credit Union

All In Credit Union is an Alabama-based financial institution with some presence in the Florida Panhandle. Its story began in 1966 when the Army Aviation Center Federal Credit Union formed to provide those stationed at Fort Rucker with a lifeline to low-cost banking. 

Unsecured signature personal loans from All In cover any type of general expense.  Your credit history determines your loan amount, terms and rates.

All In also offers share/certificate secured loans, lines of credit, credit builder loans and student loans. The Credit Builder loan can be up to $1,000, which is placed into an interest-bearing savings account. Paying off these installment loans and meeting their terms will help you build good credit. 

You can apply for a personal loan online or at one of its 25 branches. There are no application fees. You’ll get fast approval and local funds processing, so you usually receive them quickly. 

Best Banks in Alabama Offering Personal Loans

Get a personal loan from a bank if you want the certainty of banking both online and in-person at a branch.

APR
Fixed; depends on credit

Best Local Bank: Merchants Bank of Alabama

Merchants Bank of Alabama is a local bank with large bank offerings. These include but are not limited to best-in-class digital banking and competitive rates on loan products.

You can get a personal loan to pay for large expenses or to pay for a car or recreational vehicle. Your credit score will determine your terms, rates and loan amount. You may also apply for a personal line of credit or an overdraft protection line of credit. 

APR
Fixed; depends on credit history
Loan Amounts
$2,000 to $35,000 if you apply online, up to $50,000 if you apply in person at a branch
Terms Offered
Varies based on the amount

Best for Customer Service: Regions Bank

Regions Bank is a bank with a nationwide presence and numerous locations in Alabama. Regions gets big points for its easy-to-reach, highly responsive customer service. You can reach human support online, over the phone or through social media. Its website also has an extensive, easy to understand FAQ section.

Applying for personal loans with Regions is easy online or at one of its brick-and-mortar locations. Regions offers unsecured online personal loans between $2,000 and $25,000. And you can borrow up to $50,000 by stopping by a branch to apply. You can use these loans for any purpose or something specific like debt consolidation, home improvements and emergency expenses. Other personal loans include a Secured Installment Loan and a Deposit Secured Loan. 

Your terms and rates are individually determined by your credit history. You can prequalify online and see your rates without hurting your credit score.

Best Personal Loans in Alabama from Online Platforms

Applying for a personal loan online has many benefits, including the ability to easily compare personalized offers from various lenders and managing your loan from your phone. Check out some of our trusted sources for digital lending. 

APR
from 5.95% APR (with autopay)*
Loan Amounts
$5,000–$100,000
Terms Offered
2–7 years
Minimum Credit Score
630

Best for Loan Comparison: Credible

Use Credible to find custom-fit personal loan options from multiple lenders. You can compare loans side-by-side for free using Credible.

Comparing your offers won’t hurt your credit score. The process takes less than 2 minutes, and you can choose the lender with the best terms and rates. Personal loans with Credible fund a variety of financial goals, like big trips or weddings, or to consolidate debt and improve your credit. 

You’ll find personal loan options with fixed, competitive rates with terms that range from 2 to 7 years. Loan amounts range from $1,000 to $100,000. 

Aside from personal loans, you compare credit cards, home loans and mortgage refinancing, or student loans and student loan refinancing from lenders across the board.

APR
5.99% – 19.96%
Loan Amounts
$5,000 – $100,000
Terms Offered
5, 7, 10, 15 and 20 years
Origination Fee
$0

Best for Fee-Less Loans: SoFi

SoFi is a fee-less online lender offering several different types of loans. You can apply for a personal loan, a home loan, student loans or refinancing.  SoFi also offers several investment products and spending accounts. You can also use SoFi as a credit monitoring tool or to apply for small business financing. 

Personal loans from SoFi can fund home renovations or pay for medical procedures and emergency expenses. You can also reconsolidate your debt.

Applying for loans from SoFi is simple and fast online. Loans ranging from $5,000 to $100,000 are available with flexible terms and a fixed rate.

When SoFi says fee-less, it means there are no origination fees, no prepayments fees and no late fees. You’ll pay less overall, and you can put your money toward repaying it as quickly as you’d like. 

APR
5.65% – 22.59%
Loan Amounts
$5,000–$35,000
Terms Offered
2–5 years
Minimum Credit Score
660
Origination Fee
0%–5%

Best for Debt Consolidation: Payoff

Payoff is an online service with a personal loan designed specifically for debt consolidation. You can use a lower interest Payoff loan to pay down high-interest credit card balances. Paying 1 set monthly payment at a low, fixed rate over a set number of installments makes debt management easier. 

Loans range from $5,000 to $35,000 with fixed rate APR. Terms fall between 2 to 5 years with origination fees of 0% to 5%. 

Unlike many lenders, Payoff is clear about its borrower standards. Check out its website to see if you meet them.

A loan from Payoff is a great way to tackle debt and improve your credit score. Your FICO score may see as much as a 40-point boost by raising your overall credit limit and lowering your credit utilization.

Personal Loan Considerations

A personal loan can help you improve your credit or cover a large expense by providing 1 lump cash payment. Look for loans with minimal fees, good rates, and terms that make sense for your specific financial situation. Meeting the repayment terms of your loan is important for your credit health, and you can face consequences if you don’t. Also, be wary of too-good-to-be-true or predatory loans, especially online. Use a trusted lender to avoid any trouble.

Personal Loans vs. Credit Cards

Use a credit card if you need consistent access to relatively low amounts of credit. A personal loan is better for covering large, one-time expenses or to pay off multiple debtors. Personal loans tend to have fixed terms and rates, while credit cards come with variable rates and open-ended terms. Consider your unique needs before deciding which is best for you.

Frequently Asked Questions

Q: What happens if I can’t repay my personal loan on time?

A: There could be serious consequences. You may have collateral seized if you default on a secured loan, or you can face steep fees and penalties if you miss payments or don’t repay your loan on time. It will also negatively impact your credit score.

Q: Can a personal loan help my credit?

A: Yes, as long as you meet the loan’s terms. Handling a personal loan responsibly will reflect favorably on your credit report. It can also improve your score by raising your overall credit limit.

Find a Personal Loan Today

Get funding for a special expense or start working on your credit score with a personal loan. Apply for one online from any of our lenders or at a branch from one of our brick-and-mortar institutions.