How Many Online Payday Loans Can You Have In Alabama

Last updated on October 14th, 2023 at 12:10 am

Hey, I’m Randy. I lead a team at Ready Payday Loans. I educate our readers about the good and bad effects of payday loans. This guide will assist you in understanding payday loans in general and how many payday loans you are allowed to have in Alabama. Payday loans, often known as short-term loans, if you use them with caution, can be helpful in an emergency. 

There are many Alabama residents asking for two payday loans at a time. Borrowers should be aware of Alabama payday loan laws. That is if they’re wondering if they can get two payday loans from different places in Alabama.

It is not against federal law for someone to have many payday loans. The Alabama state banking department has regulations on payday loans. We’ll look more at these regulations in this article and how many payday loans can you have in Alabama. 

Payday Loan Laws in Alabama

Payday loans in this state are under the Alabama small loan act.  This act dictates the number of how many loans can you have in Alabama. The Alabama consumer credit Act protects borrowers from predatory lenders. 

These acts are in place since the payday loan sector has a lengthy history in Alabama. Regulators have made several attempts to stop predatory lenders from exploiting customers. They have put these legislative restrictions in place to safeguard payday lending. But some predatory lenders have always managed to remain one step ahead.

Despite the few restrictions in place, many of you might be asking what the loan limit is in Alabama. The largest loan amount allowed is $500. The limit applies no matter how many lenders or transactions there are. 

The length of the loan might range from 10 days to 31 days. There are also some finance charges. According to Alabama law, payday lenders may apply financing charges as high as 17.5%. This is for every $100 of the loan’s principal amount. The cap on annual percentage rates is 456.25%.

There are rollovers for payday loans in Alabama. There is also a cooling-off period. It is one business day after a rollover. 

How Do I Apply For A Payday Loan In Alabama?

As an Alabama resident, you are free to work with any lender you prefer. But lenders have some requirements. When you meet these requirements, this is how you qualify for payday loans in Alabama.

For those who are 18 years of age or older, there is a chance to apply for payday loans. Being an American national or bearer of a green card is also an advantage. Payday lenders look for those with a constant income. They’ll need you to provide your Name, DOB, SS#, and a national ID like a driver’s license. 

You might also need to provide your address and phone number. Another thing that you should provide may be your bank account information if you are applying online. 

How Much Do Alabama Payday Loans Cost?

There are certain fees that you may expect when taking out a payday loan in Alabama. The first is the Annual Percentage Rate. The highest interest rate for a 24-hour payday loan in Alabama is 456.25% (per $100 borrowed). The APR for a 30-day loan is 206.05%.

Fees and other expenses in Alabama can include costs that amount to as high as 17.5% of the entire amount borrowed. Thus, the highest fee for a $100, in a 14-day loan is $17.50. If you don’t pay before the due date, they may also charge you 3%, which will be added to the total loan cost.

When you take out a payday loan in Alabama, you may only request an extension once. A fee will be charged if you do not have adequate funds in your bank account to pay the check. lenders may also impose an NSF (non-sufficient funds) fee.

It is also acceptable for payday loan providers to impose an NSF fee of up to $30. Additionally, they are entitled to court costs and attorney fees up to 15% of the check’s value.

Payday loans in Alabama may be repaid early at any time without incurring more costs.

Why Take Out A Payday Loan In Alabama?

There are some reasons why you may need to take a payday loan in Alabama. You can take out a payday loan if your credit is poor. In Alabama, payday loans are more flexible than bank loans. You may apply for a payday loan in Alabama with bad credit if you have the ability to repay the amount.

You can also get your hands on money with ease. If you apply for a loan in a store, you may have the money within an hour. When you pick an online option, money is deposited as fast as the next day.

Using the funds any way you see fit is also another reason to take out payday loans in Alabama. You can put the money to any use, as you may already be aware. For instance, you may use the loan to cover a vehicle payment, an urgent medical need, or a significant debt.

Another reason to take out a payday in Alabama is that it is quick to apply. Applying for a short-term payday loan in Alabama online is as simple as applying in person at a local branch. You may submit your application from any location. That is as long as you have documentation proving that you live in the state of Alabama.

How Do You Get The Funds You Want Without Using A Payday Loan?

There are a few ways you can get funds without using a payday loan. You can request a cash advance from your company. If you don’t get a cash advance from your employer, you can ask a friend or family member to lend you some money.

Another way to get extra funding is to find out if your checking account has overdraft protection or if you can apply for it. You can also determine whether you can postpone paying non-interest bills. Non-interest bills can include a utility bill. Work out a payment plan with the utility provider.

Request extra time from your creditors to make your payments. Find out if there will be a late fee, an extra finance charge, or a higher interest rate for this service.

How To Plan For The Future Despite How Many Payday Loans Can You Have In Alabama

Planning for the future is the best thing to do if you don’t want to take out payday loans. A realistic budget will help you plan for the future before taking a payday loan. A credit counseling service can help you make a monthly budget. Try to look for a local one which is no profit making. 

Another simple solution to plan for the future is to put aside some extra money. Avoid borrowing for unexpected expenses and emergencies by putting aside some savings. 

Summary: How Many Online Payday Loans Can You Have In Alabama?

Payday loans are for borrowers who want quick cash to cover an emergency expenditure. A car breaking down can be an emergency expenditure. Those who aren’t in a tight financial spot can take the opportunity to get more affordable loans. Borrowers in Alabama who are in a tight financial situation can get a payday loan once they understand the state laws.

The state government believes that payday lenders provide a valuable service to borrowers. Especially those who need financing but struggle with bad credit. Thus, there is no restriction to the payday loans industry.

Remember, you can use payday loans available in Alabama for anything. If you have questions or need more information about payday loans in Alabama you can ask me. Here at Ready Payday Loans, we provide loan connection services. You can also contact your state department for more details. 

Until next time.

Randy!