Looking for an Unsecured Personal Loan in Alabama?

credit check for unsecured personal loan alabamaBad credit is truly not a problem. Yes, it can limit your options when seeking financing, but that does not mean you cannot receive the funding you need. The mistakes you may have made, or the issues that caused your credit score to diminish, are in the past. Do not dwell on them. Instead, learn from them and move forward. If you want to have better financial options in the future, then you need to focus on the present. Taking out a personal loan is a great way to build good credit.

Do you have financial needs that you just can’t afford right now? Have you encountered a situation that requires more money than you have available to cover? If so, a personal loan can help you get on track with your financial goals or assist in paying for those situations. Problem: you are finding it difficult to find a lending institution that will provide you with the money you need to get started. Not having an established credit history can be challenging when searching for funding, and it can be frustrating, but that doesn’t mean it’s impossible to receive the money you need to afford the things you need.

Unsecured Loans for People with Bad or No Credit

People with bad credit or no credit have financial needs just like everyone else. They should be able to access funds to help pay for a child’s medical expenses, or putting a down payment on a new vehicle after the last one finally gave out. If you aren’t sure about your current credit scores, be sure to check your credit before applying for a loan. So ,what other reasons are there to take out a personal loan?

A couple of those reasons have already been hinted at, but the majority of reasons people need an unsecured personal loan can fall into three main categories:

  • Rebuild or establish your credit
  • Cover emergency expenses
  • Help pay for high-priced items or services

Do not take out a loan unless you have a realistic purpose for spending the money. If you have an actual use for the funds you would receive, then taking out a personal loan can serve you two-fold. You can fulfill that financial need as well as build the credit you need to support your family. The last of the categories may seem frivolous to some; after all, you do not need a boat to get through life. While that is true, consider this: a vast majority of things cost so much that few people can actually afford them on their own. TVs, computers, or that boat you were wanting are all high-priced items usually purchased with a loan. If you can afford the monthly payments, then there is no reason not to buy the boat you imagined yourself in.

Lending in Alabama

credit scoreOver the last few years, Alabama has taken notice of a loan practice that is hurting the citizens of the state, and has recently passed legislation to restrict the negative effects associated with this issue. Payday loans are costing Alabamians more than the loans are worth. The fees attached to these types of loans can add up quickly, leaving borrowers with little money in their pockets once the loan is paid off. This is proving detrimental to the state’s economy. Many of these lenders prey on the need for financing by those with no credit or bad credit, and they lock borrowers in a cycle of repayment and re-borrowing in order to survive until the next paycheck. This only leads to the continuation of the cycle.

To avoid entering this cycle, those with no credit or bad credit should steer clear of these types of lenders. Wondering how the borrowing process works? Taking out a personal loan is a safer way to spend your hard-earned money. Unsecured personal loans do not trap you in a cycle of reliance. There is a clear-cut path to paying them off, provide you with terms that allows for the loan to be paid over the course of several years, not within a week or two, and can benefit you both now and in the future.

Alabama Laws and Regulations for Bad Credit Personal Loans

Because people with no credit or bad credit are typically the ones looking to take out a loan of less than $1,500, whether to build or repair their credit or to help in a financial shortfall, they can oftentimes be taken advantage of by unscrupulous lenders. The Small Loan Act places interest rate restrictions on anyone lending less than this amount: 2% on any unpaid principal between $200 and $1,500, and 3% on the unpaid loan principal less than $200. This was done to protect the citizens of Alabama from repaying unreasonable amounts of money, considering the amount originally borrowed.

Taking the effort of protecting the people even further, the State of Alabama also defines the maximum finance charges lending institutions can require of a borrower. For any unsecured personal loans, a lender can charge, in lieu of a percentage rate, a fee up to $15 for every $100 on a principal of $750. Any amount exceeding the $750 portion of a principal can be affixed no more than $10 per $100. These regulations are in place to ensure a lending business is able to achieve a profit, allowing them to remain in operation, and continue to provide financial services to the people of Alabama.

Loans Now: Core Policies & Procedures

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  • Introduce customers to our Loan Discovery Process. A one-on-one loan service strategy that fits every customer’s unique needs with the right lender for them

Alabama Personal Loan for Bad Credit Lending Regulator

The State Banking Department is responsible for overseeing personal loan regulation. Within this body are two separate sections responsible for monitoring the lending industry. For loans issued through banks and credit unions, the Bureau of Savings and Loan have oversight jurisdiction. If a loan is taken out through a financial service, then the duty falls to the Bureau of Loans.

Bureau of Loans Alabama Banking Department ATTN: Consumer Lending P.O. Box 4600 Montgomery, AL 36103-4600 consumer.lending@banking.alabama.gov (334)242-3452
http://www.banking.alabama.gov/BOL.aspx
Bureau of Savings and Loan Alabama Banking Department ATTN: Consumer Lending P.O. Box 4600 Montgomery, AL 36103-4600 consumer.lending@banking.alabama.gov (334)242-3452
http://www.banking.alabama.gov/
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