How Many Payday Loans Can You Have In Alabama
Last updated on October 14th, 2023 at 12:15 am
Hello there!
It’s Randy again from Ready Payday Loans.
Are you a resident of Alabama and wondering how many payday loans can you have in Alabama? There are several payday loan lenders who operate on a daily basis in Alabama. These include online lenders and those who have storefront locations. These lenders must have a valid license to operate in Alabama.
Access to many lenders means it’s possible to take out many loans. But, access to many payday loans can put a borrower in a cycle of debt. What can you do if you are in financial hardship and are in need of emergency cash?
Sometimes you can be in a financial hardship that requires more money, and you already have a payday loan. In such a situation, you might also ask yourself, how many payday loans can you have in Alabama?
Today, you have found the right place to learn more about payday loans in Alabama. I’ll take you through how payday loans work in Alabama so that you avoid being in a cycle of debt. The requirements for a payday loan will help you know how many payday loans can you have in Alabama.
Does the Alabama State Allow Payday Loans?
Whether you are in Huntsville, Mountain Brook, or Alabaster, it is possible to get a loan. Even if you have bad credit, you can still get a payday loan inside the cities and towns in Alabama. The state allows a borrower to get only one payday loan at a time. You can consider getting another one when you finish paying off the initial one.
Understanding the state’s laws and regulations will help you understand how many payday loans can you have in Alabama. You can get the loan in 10 to 20 minutes if you have all the requirements.
The state law also allows payday loan lenders to have access to the database of the state. With this privilege, they are able to see if a borrower has a similar loan.
It is legal to take out a payday loan in Alabama. Before taking out, remember that payday loans have a high cost even if they are legal. Lenders give payday loans without a credit check, and they come with a high APR. Hence, it can be difficult to pay back payday loans on schedule. Its high costs contribute to missing payments.
How Payday Loans In Alabama Work
There are only a few companies that have the right to give out a payday loan in Alabama. These companies have different terms and conditions that follow the set regulations. The following are a few standard terms for online payday loans in Alabama:
Amount of Loan
The Alabama legislature has put certain payday regulations in place. These regulations ensure there is safe lending in the state. For example, the smallest loan amount is $100 and the largest loan amount is $500. The restriction on the loan amount limit is to ensure borrowers pay off the loan.
Most of the individuals who take out these loans have a bad credit rating. Their average income is also around $1000 which is why the largest possible amount to borrow is $500.
Loan Rates
The APR of payday loans varies by the lender in Alabama. The state legislature has set an APR limit, in which the largest APR is 456.25%. In comparison to other states that offer up to, 2200%, Alabama offers an affordable rate. But, for every $100 borrowed, lenders charge a fee of $15.
Terms of Loan
If you live in Alabama, you can get short-term payday loans. The smallest loan term is 10 days and the largest is 31 days. By the end of the 31 days, you should be able to pay back the loan.
When you don’t have the funds to repay, you can talk with your lender. Some are willing to extend the loan term. If they accept to change the payment date, they can charge an extra fee.
What Are The Fees For Online Payday Loans In Alabama?
There are some fees that payday loan lenders charge which affect how many payday loans can you have in Alabama. One of them is the financing fees, which are 17.5% of the amount that you borrow.
There are also Nonsufficient funds(NSF) fees. For these fees, the lender charges you $30 if you have insufficient funds in your checking account. When a lender is cashing your check, they may apply the NSF fees. It also applies when a lender tries to withdraw the owed amount from your account.
Apart from the financing fees and the NSF fee, there are also default fees and loan extension fees. Default fees can be up to 3% per month if you fail to pay back the loan by the date of default. Loan extension fees are for a new deferred transaction after failing to repay a loan. This applies even after you roll it over.
What Are The Requirements For How Many Payday Loans Can You Have In Alabama?
There are other eligibility requirements for how many payday loans can you have in Alabama. That is, apart from your name, Social Security number, and contact details. To be eligible for loans in Alabama, you need
- U.S. citizenship and a formal job.
- To be the age of 19. This is different from other states, in which the smallest age to apply for a payday loan is 18.
- A checking or savings account.
- A valid Alabama license or government-issued ID
What Are the Alternatives for Payday Loans in Alabama?
Payday loans can be costly. You can consider alternatives such as borrowing money from friends and family. Your employer can also give you a cash advance, an early paycheck, if you ask for it. If you’re a member of a credit union, you can also ask for a loan with better terms.
There are other options for those who are looking for payday loans to cover daily expenses. State programs such as the Alabama Department of Human resources Food Assistance Division can help out. Before applying for payday loans, you can consider such a program to cover food expenses.
Final Thoughts On How Many Payday Loans Can You Have In Alabama?
Not all states have the same law when it comes to payday loans. A few states have limits on how many payday loans one can have. There is no specific amount on how many payday loans can you have in Alabama. Other states allow you to borrow over a certain limit, which might not be a good idea. You might end up missing a payment on one of the loans.
I have taken a few payday loans in the past. With experience, I’ve learned how to use payday loans and avoid payments. I hope this article has provided valuable information on how many payday loans can you have in Alabama, especially for those who are in Alabama or any other state seeking out payday loans. You can reach out to me or my colleagues at Ready Payday Loans if you have any more questions.
Finally, I would like to draw your attention to a few resources that you might find helpful. First, you can visit our page on loans in Alabama here. Or you can always visit our page on payday loans here. Please remember, when you take out a payday loan in Alabama, know about the Alabama payday loan laws.
Thanks for reading this and I hope you have a wonderful day.
Until next time!
-Randy. 🙂
