You may absolutely get an online payday loan in Alabama. It’s important to ensure you get one from a licensed lender however, to ensure they are complying with all state regulations.
How much money can I get for an Online Payday loan in Alabama?
The maximum amount you can borrow through an online payday loan is $500, though you can borrow less than that amount. Also, you are only permitted to have a single payday loan from a given lender in Alabama at a time. Once you pay that loan off, there is a short cooling off period during which you can’t borrow from that lender again.
What’s the interest rate on an Online Payday loan in Alabama?
The maximum APR for an online payday loan in Alabama is 456%. That means, if you borrow $500, you may have to pay $190 in interest per month. There can also be finance charges up to 17.5% of the amount borrowed, so $87.50 on a $500 loan. This means you may pay $277.50 in interests and fees on a $500 Payday loan, totaling $777.50.
When do I need to pay my Online Payday loan back?
The minimum term for an online payday loan in Alabama is at least 10 days and the maximum term is 31 days. If you are unable to pay the full amount by the end of the term, you may be able to negotiate an extension of your repayment schedule.
What happens if I don’t pay my Online Payday loan back?
Like other unsecured loans, when failing to pay off your online payday loan, there are a number of things your lender can do:
- The lender may notify TransUnion, Equifax, and Experian, the three major credit bureaus. Your credit may be negatively affected as a result.
- The lender may charge you a one-time fee of $30 if a payment fails due to there not being enough money in your account, a NSF fail.
- The lender may take you to civil court, depending on the amount, and try to recover their money. If you lose, you may also be responsible for some of the lender’s civil court costs, up to 15% of your original check amount, plus your own court costs.
- The lender may initiate criminal proceedings against you if they go to withdraw money from your account and it has been closed.
If you don’t like the sound of any of these, you may roll the remaining balance of your online payday loan into a new loan a single time.
How does the rollover work?
When you rollover your loan, it extends the amount of time you have to pay the loan back. Normally, there is a fee associated with this and you may need to pay down some of the principle. At the end of the new term, you may have to pay the remaining balance of the loan plus any new fees or interest that have accumulated during the extension.
What happens if my lender sues me over my Online Payday loan?
If you are sued by your lender for the outstanding amount of your online payday loan, you’ll have to go to court and plead your case in front of a judge and explain why you shouldn’t have to repay your loan in the agreed-upon time. If the judge sides against you, you will be forced to repay the loan. The court may be able to do things like take money out of a paycheck and send it to the lender.
Are there any alternatives to Online Payday loans in Alabama?
There are a number of other short-term loans other than online payday loans in Alabama, title loans, for example.
How do Title loans differ from Online Payday loans in Alabama?
Similar to online payday loans, you can use your title loan money on a financial crisis, unexpected expenses, emergencies, etc. Unlike online payday loans, title loans use a qualifying car title in your name to secure the loan. You can still keep and drive your car during the terms of the loan, but if you fail to pay the lender back, they may repossess your car.
Title Loans have a number of advantages over Online Payday Loans:
- Maximum loan amount is determined by the value of your vehicle and your ability to pay, rather than being capped at $500.
- Maximum monthly interest rate of 30%
- If you miss your payment, you have a 30-day grace period to complete the payment of your loan before the lender can notify credit agencies or repossess your car. Though you may have to make another interest payment.
You can find out more here.
How to get a Title Loan with LoanMart:
As you’ve learned, a title loan is not only a great way to get funds in an emergency for an unexpected expense, it also has a number of advantages over an online payday loan. You can keep and drive your car for the duration of the loan while you make payments, and because there is not always an emphasis on credit, the loan application process can be quick and easy. If you have a qualifying car title in your name, you may be eligible for a title loan of up to $30,0001. Due to LoanMart’s streamlined sign up process, the turnaround time from submitting your information to receiving your loan may be less than 24 hours3.
With our easy process, we give you three ways to contact us that make it convenient for you:
- Visit a LoanMart participating store
- Call us at 1-855-422-7412
- Sign up online without leaving your home
Once you know how you want to get in touch, just follow these steps to get the money you need:
- Fill out the registration form
- Submit your important documents to your LoanMart representative
- Sign your LoanMart agreement
- Collect your funds1!