Payday Loans Online Alabama: All You Need to Know

Considering the latest stats, over 62% of US consumers live paycheck to paycheck, and many of them have a hard time stretching their budget enough to meet the basic expenses. Although it’s important to reserve a certain cash fund to cover both everyday spendings and emergencies, building up savings takes some time, so it’s not always a way out when you are in a bind. That’s why I’m here to guide you through online payday loans Alabama – a solution that saved me a heap of times on different occasions and that may serve you well too. I will happily share all my knowledge and firsthand experience with you, as well as give you practical tips on where to take loans safely and quickly in Alabama.

Alabama Payday Loans Explained

Payday cash advances are arguably the simplest type of lending offerings issued by loan companies in Alabama. It all comes down to borrowing a certain amount of cash (typically small) and paying it out within a short period in one lump sum. These loans are unsecured and given almost instantly with no credit checks. Of course, access to quick money is not free, and lenders take a flat fee for each $100 borrowed. Due to the flexibility and accessibility of payday cash advances, the charges are usually higher than for other lending offers, e.g. installment loans Alabama. That’s why they are considered high-risk, although I have never had any problems paying out the cash I borrowed. It’s all about sound financial management.

What You Need to Apply for Payday Loans Alabama

Online payday loans in Alabama come with fewer requirements, which gives you almost a 100% chance to get approved even if you are a bad-credit applicant. Instead of pulling out a credit report, lenders verify that you are a solvent adult with a source of income, so this is what you need to qualify for a payday loan:

• Be of legal age
• Be a resident of Alabama
• Provide a valid government-issued ID
• Have an active bank account
• Provide proof of income (paycheck stubs, bank statements, etc.)

Legal Limitations on Payday Loans in AL

Short term loans Alabama are legal and regulated according to Ala. Code §§ 5-18A-1 et seq. The regulations apply to both storefront and online loan providers operating in the state. Below, I highlight the principal legal norms you should know in advance to keep yourself safe when borrowing cash from local lenders.

Maximum amount of a payday loan in Alabama

The maximum payday Alabama loan amount is limited to $500 and the value remains the same regardless of the number of transactions or lenders involved. For instance, if you already have a $200 cash advance, you will not manage to borrow more than $300 until you pay out the existing debt. The providers of pay day loans Alabama are supposed to check your outstanding borrowings before entering into a new contract with you so as not to violate the law.

Payday Alabama loan term

The repayment term of each online payday loan Alabama cannot exceed 31 days. In my experience, this period is enough to deal with debt since you can pay it off on a salary. However, you are allowed to extend the term of your cash advance with a single rollover, thereby doubling its life. The minimum repayment term of Alabama cash payday loans is 10 days, although lots of lenders give you no less than 14 days to discharge the debt.

Grace period for payday cash loans Alabama

If you still find it difficult to return the debt after the rollover, your lender may offer you an extended plan for repaying the AL payday loan in four identical monthly installments. Please note that you have 15 days to accept the plan, otherwise, they might take you to court. Under some contracts, no additional interest is imposed during the grace period, while certain lenders do charge their clients more after the loan due date. Read the agreement carefully for your peace of mind.

AL cash advance rates & fees

According to the laws regulating payday cash loans in Alabama, the finance charges are limited to 17.5%. That is, you will pay $17.50 for each $100 borrowed. Not so long ago, I took a $400 cash advance for 14 days from an online lender and paid $70 in fees. So, my post-dated check was $470 in total, resulting in a 456.25% APR, which is an average interest for today’s lending market in the US.

If your direct transfer fails or your bank account runs out of money to cover your post-dated check, Alabama pay day loan lenders are entitled to charge the NSF (non-sufficient funds) fee of up to $30.

Debt collection & legal proceedings

Defaulting on Alabama pay day loans could trigger frequent collection calls and letters from lawyers, while some lenders may even threaten you jail time even though it’s illegal, as a failure to repay cash advances is not a criminal offense. Criminal actions against Alabama borrowers are generally prohibited, but in some cases, lenders can take you to court, for example, if they fail to get a repayment check due to a closed bank account.

Maximum number of Alabama cash loans

There is no clearly set limit on the number of Alabama online payday loans a borrower can apply for. Hence, if you are willing to have more than one, you are likely to get approved assuming that the total amount of your outstanding cash advances does not exceed $500. That’s pretty convenient since you do not always know the exact amount you need to cover certain expenses, so a chance to get another quick payday loan Alabama for emergencies makes you feel more secure.

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Other Restrictions on Payday Online Loans Alabama

To complete the picture, you should also know about a few other restrictions on online Alabama payday loans. They are no less important than the ones I have mentioned above:

• Cooling-off period. A cooling-off period is short in Alabama – just one business day after repaying two consecutive loans. But I do not recommend you take cash advances too often. If you need to borrow more, other types of lending offers may suit you better, including online installment loans Alabama.
• Statute of limitations. The statute of limitations on Alabama cash advances is six years. This is a period after which a lender is no longer entitled to sue you for a payday loan debt. They also cannot use any other method to collect the cash you owe them.

Why there are limitations on payday advance loans Alabama

Since no credit check loans Alabama come with high interest and short repayment periods, some borrowers fail to save up enough funds to discharge the debt before its due date. When this happens, they often extend the loan term or sign another borrowing contract, which leads to even greater debt accumulation. If states do not limit rollovers and interest rates, consumers could end up paying sky-high charges for months on end with no chance of getting out of a huge financial pit.

Tips on Finding Trustworthy Lender of Alabama Online Loans

The process of finding a trustworthy lender for taking Alabama payday loans online may seem complicated if it’s your first time borrowing cash from dedicated companies. I know what I’m talking about since I got over this hurdle just like you do now. So, the following tips must help you find the best loan provider in Alabama:

• Check user reviews. Find out what other consumers say about a particular lender, explore the CFPB’s complaint database, and visit popular discussion forums, like Quora or Reddit, where users share their borrowing experiences.
• Shop around for the best interest rates and repayment terms. Make sure you are not overpaying for your Alabama payday advance. Legal lenders will never charge you more than $17.50 for each $100 borrowed, keep this in mind so as not to stumble upon scam.
• Ensure that the lender is transparent about their terms. In order to operate in Alabama, a lender must be licensed and open about their products. So, check out whether all the information about payday loans is disclosed (fees, terms, repayment period, interest rates, etc.).

Have Trouble Repaying Your Payday Loan AL? There’s a solution!

Whenever you are struggling to pay off bad credit loans Alabama, you should keep in touch with your lender as soon as possible. Regulatory laws imply that loan providers should help consumers get out of trouble by extending the repayment period, so a rollover is guaranteed no matter how much you borrowed.

Use this time to your advantage and try to earn some extra money to discharge the entire debt by its due date. For example, you may save up the needed amount by working freelance or selling some of the items you have not used for a while. You can also get professional help from Licensed Insolvency Trustees who often provide free financial advice during the first consultation.

Why Choose Paydayloanalabama.com to Find Online Loans in Alabama

Paydayloanalabama.com is a one-stop venue for anyone willing to learn everything about cash advances. Whether you are searching for an Alabama payday loan $255 or $500, you will find a tailored solution for every borrowing need. Consider the main perks you will get by using this service:

• ease of finding instant same day payday loans online Alabama;
• clear information on the interest rates and fees;
• bad-credit applicants are welcome;
• high security and top-notch data protection;
• 24/7 support.