Best Personal Loans in Birmingham (AL)
We have found 119 personal loans to apply for in Birmingham, AL. Add more criteria to compare personal loans and find the best one for you.
- Minimum credit:Fair (580-669)
- Autopay discount:0.5%
- Origination fee:No origination fee.
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- Low rates
- No fees
- Fast approval and funding
- Rate discount for autopay
- Digital experience
- Cons:
- Minimum loan amount is a bit high
- Requires a long credit history
LightStream is the online lending division of Truist (formerly SunTrust Bank).
The key feature of LightStream's online personal loans is that they can be up to $100,000 and used for nearly any reason.
LightStream charges no fees on its personal loans. Plus, it offers to send you $100 if you’re unsatisfied with the loan process.
- Minimum credit:Fair (580-669)
- Autopay discount:0.25%
- Origination fee:No origination fee.
- Funds available in:5 business days.
- Loan Purpose:Personal Loan
- Pros:
- No fees
- Autopay discount
- Cons:
- Long time to receive funds
- No Cosigner Option
Marcus offers unsecured personal loans up to $40,000 with rates from 6.99% to 24.99%.
Marcus does not charge origination, late payment and check processing fees.
- Minimum credit:Poor (300-579)
- Origination fee:10%
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- No prepayment penalty
- Next day funding
- Cons:
- Origination Fee
- Extra Fees
Upstart loans range from $1,000 to $50,000. Not all applicants will qualify for the full amount.
The minimum loan amount: $7,000 (MA), $6,000 (Ohio), $5,100 (NM), $3,100 (GA), $2,100 (HI).
Borrowers need credit scores of 580 or higher.
Upstart offers fixed-rate APRs that vary from 5.60% to 35.99%. Loan terms are available for 3 or 5 years.
The origination fee ranges from 0% to 8%.
- Minimum credit:Good (670-739)
- Origination fee:5%
- Funds available in:3-6 business days.
- Loan Purpose:Personal Loan
- Pros:
- No prepayment or late fees
- Free monthly FICO score updates
- Cons:
- Co-signers are not accepted
- Origination Fee
- Slow funding
- Not available in all states
The Payoff Loan™ is an unsecured personal loan designed to consolidate your credit cards into one monthly payment. Payoff requires a minimum FICO credit score of 640 or higher. It provides loans of up to $40,000.
The Payoff platform provides loans with rates between 8.99% and 29.99% APR. Minimum loan amount and APR may vary in certain states.
- Minimum credit:Poor (300-579)
- Origination fee:3 - 6%
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- Quick, easy online application
- Fast funding
- Cons:
- Origination fee
LendingClub offers loans of $1,000 to $40,000.
The APR range is from 8.30% to 36.00%. Loan terms are available for 3 or 5 years.
LendingClub charges an origination fee of 3% to 6% on personal loans.
- Minimum credit:Good (670-739)
- Autopay discount:0.25%
- Origination fee:No origination fee.
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- Fast approval and funding
- Rate discount for autopay
- No Fees
- Cons:
- Not available to residents of Mississippi
- No secured loan option
SoFi loans range between $5,000 to $100,000.
The APR range is from 7.99% to 23.43% (with discounts). Loan terms are available for 2 or 7 years.
The loan is not available in Mississippi.
SoFi personal loans have no fees: no origination fees, no late fees, no prepayment penalties.
- Minimum credit:Poor (300-579)
- Origination fee:4.75%
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- Fast approval and funding
- Low minimum credit score requirements
- No prepayment fees
- Cons:
- Fees
- No Autopay discount
- No Cosigner Option
Avant offers unsecured loans of $2,000 to $35,000. Rates range from 9.95% to 35.95%.
Avant charges an origination fee up to 4.75%.
Avant personal loans are not available in Colorado, Iowa, West Virginia, New York, Vermont, Hawaii, and Nevada.
- Minimum credit:Fair (580-669)
- Origination fee:2.41 - 5%
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- Fast approval and funding
- Simple application process
- Cons:
- Origination fee
- Extra Fees
- No Autopay Discount
- Not available in all states
Prosper offers fixed-rate APRs that vary from 7.95% to 35.99%. Loan terms are available for 3 or 5 years.
The origination fee ranges from 2.41% to 5%. Prosper charges $15 for failed payments or returned checks. Payments that are 15 or more days late are assessed a late fee.
If you don't qualify for a personal loan with Prosper, consider applying with a co-applicant.
- Minimum credit:Good (670-739)
- Origination fee:0.99 - 8.99%
- Funds available in:1-3 business days.
- Loan Purpose:Personal Loan
- Pros:
- Fast approval
- Low fixed rates
- Fast funding
- Cons:
- Fee charged
Best Egg is a national online lending platform offering personal loans starting at $2,000 for a variety of purposes.
Best Egg’s personal loans are ideal for consolidating debt or funding major expenses. Borrowers cannot use loans toward securities or postsecondary educational expenses.
There are no prepayment penalties, so you can pay off the loan ahead of schedule without extra fees.
Best Egg origination fees vary from 0.99% to 8.99%.
The quote you receive is based on multiple factors, including: Credit score and history, Income, Debt obligations, Loan amount, Repayment term (36 vs. 60 months).
- Minimum credit:Poor (300-579)
- Origination fee:$25 - $500
- Funds available in:1 business day.
- Loan Purpose:Personal Loan
- Pros:
- Secured and unsecured options
- Poor-credit applicants considered
- Cons:
- Origination fee
- Extra Fees
- High Rates
OneMain Financial offers loans that range from $1,500 to $20,000. The annual percentage rate ranges from 18.00% to 35.99%.
You may be approved for an unsecured or a secured loan. A secured loan requires you to provide collateral, such as a motor vehicle, while an unsecured loan doesn’t require any collateral at all.
OneMain charges late payment fees. These fees may range from a flat amount of $5 to $30 per late payment, or they may be a percentage of your entire monthly payment amount or a percentage of the delinquent portion of your monthly payment amount, ranging from 1.5% to 15%.
The lender charges an origination fee. Flat fees vary by state and range from $25 to $500. Percentage fees range from 1% to 10% of the loan.
TOP 5 banks offering personal loans in Birmingham
- Bank name
- Total Assets
- Branches
How to Select the Optimal Personal Loan in Birmingham, Alabama?
Personal loans can serve as a valuable tool to bridge financial gaps in your budget. When utilized wisely, a personal loan can offer financial flexibility and enhance your overall financial well-being. Therefore, it is crucial to identify a loan that aligns with your financial circumstances. With this in mind, here are some strategies for comparing and choosing the most suitable personal loan in Birmingham , Alabama.
Consider Annual Percentage Rates
The annual percentage rate (APR) is a key factor to evaluate when selecting a loan. Unlike just the interest rate, the APR provides a more accurate representation of the total cost of the loan, including associated fees. By comparing APRs, you can discern which loan option will be more costly in the long run.
In Birmingham, APRs typically range from 4.49% to 36%.
Evaluate Loan Amounts
Determining the precise amount of money you require may be challenging. Conduct thorough research on loan amount options and choose a lender that offers a substantial range. In Birmingham, you can find loans ranging from $100 to $500,000. Additionally, consider lenders that allow you to withdraw the loan in parts, only charging interest on the funds you utilize. Such flexible loans are beneficial for projects where the required amount may not be immediately evident, such as home renovations or car repairs.
Assess Monthly Payments
The monthly payment is the amount you must repay each month. Ensure that this amount comfortably fits within your budget, allowing you to meet other financial obligations while repaying the loan and its interest.
Evaluate Credit Requirements
Generally, lenders prefer borrowers with good to excellent credit scores (670 or higher). However, some lenders may accept individuals with poor to fair credit. While a high credit score does not guarantee lower interest rates, it increases the likelihood of approval. In Birmingham (AL), the minimum acceptable credit score is considered poor (300 - 579). Consequently, tailor your search to lenders that offer the best loan terms based on your credit score.
Consider Collateral
Most personal loans are unsecured and do not require collateral. However, certain loans may necessitate collateral. Secured loans typically have lower interest rates since the lender faces less risk due to the presence of collateral. Conversely, unsecured loans generally have higher interest rates. If you are concerned about high interest rates (which can reach 36% in Birmingham), a secured personal loan may be a favorable option.
Examine Origination Fees
In addition to interest, many lenders charge processing fees, often referred to as loan origination fees. These fees are usually a percentage of the total loan amount. While the common origination fee ranges from 0.5% to 1%, the specific amounts vary among lenders. Opting for a personal loan with lower processing fees can result in long-term savings.
Compare and Choose the Ideal Personal Loan in Birmingham (AL)
Personal loans offer a valuable financial solution, simplifying your financial situation. Conducting a side-by-side comparison of available loan options in Birmingham will facilitate your research in selecting a loan with favorable terms that suit your financial circumstances.
| Lender | APR | Loan Amount | Loan term | Origination Fee | Score Required | Apply |
|---|---|---|---|---|---|---|
LightStream | 6.49 - 21.99% | $5,000 - $100,000 | 2 - 6 years | No origination fee. | From Fair (580-669) to Fair (580-669) | Check rates On partner's site |
Marcus by Goldman Sachs | 7.24 - 25.24% | $3,500 - $40,000 | 3 - 6 years | No origination fee. | From Fair (580-669) to Excellent (740-799) | Check rates On partner's site |
Upstart | 5.6 - 35.99% | $1,000 - $50,000 | 3 - 5 years | 10% | From Poor (300-579) to Excellent (740-799) | Check rates On partner's site |
Payoff® | 8.99 - 29.99% | $5,000 - $40,000 | 2 - 5 years | 5% | From Good (670-739) to Excellent (740-799) | Check rates On partner's site |
LendingClub | 8.3 - 36% | $1,000 - $40,000 | 3 - 5 years | 3 - 6% | From Poor (300-579) to Excellent (740-799) | Check rates On partner's site |
SoFi | 8.24 - 23.68% | $5,000 - $100,000 | 2 - 7 years | No origination fee. | From Good (670-739) to Excellent (740-799) | Check rates On partner's site |
Avant | 9.95 - 35.95% | $2,000 - $35,000 | 1 - 5 years | 4.75% | From Poor (300-579) to Excellent (740-799) | Check rates On partner's site |
Prosper | 7.95 - 35.99% | $2,000 - $40,000 | 3 - 5 years | 2.41 - 5% | From Fair (580-669) to Excellent (740-799) | Check rates On partner's site |
Best Egg | 7.99 - 35.99% | $2,000 - $50,000 | 3 - 5 years | 0.99 - 8.99% | From Good (670-739) to Good (670-739) | Check rates On partner's site |
OneMain Financial | 18 - 35.99% | $1,500 - $20,000 | 2 - 5 years | $25 - $500 | From Poor (300-579) to Excellent (740-799) | Check rates On partner's site |
These essential loan characteristics have been included in the table because they are deemed the most significant factors when comparing personal loans.
5 Simple Tips for Improving Personal Loan Approval Chances in Birmingham (AL)
At some point, you may need to borrow money, and it is essential to avoid facing loan rejections. Maximizing your chances of personal loan approval will prove beneficial in the long run. If you are contemplating a loan in Birmingham , here are five steps to enhance your personal loan approval odds.
- Enhance Your Credit Score. Boosting your credit score is the most effective way to improve loan approval odds. Although the minimum credit score requirement in Birmingham is considered poor (300 - 579), having a high credit score increases the likelihood of approval. To improve your credit score:
- Ensure timely debt payments, as your payment history significantly influences your credit score.
- Maintain a low total credit utilization, utilizing a smaller portion of your total credit limit.
- Avoid frequent applications for new credit lines, as hard inquiries can negatively impact your credit score.
- Dispute any errors in your credit reports, as roughly 1 in 5 reports contain inaccuracies. Rectifying errors can raise your credit score.
- Increase Your Income. Lenders evaluate your debt-to-income ratio when assessing approval prospects. To improve your chances, consider augmenting your income. While it may be challenging, options to increase income include requesting a raise at your current job or taking on a part-time job to generate additional funds. Higher income lowers your debt-to-income ratio and enhances approval odds.
- Minimize Debt. Avoid acquiring new debt while applying for a personal loan. Lenders perceive existing debt as a risk factor, diminishing your chances of approval. Strive to eliminate current debts and refrain from accumulating new ones. Lowering your debt burden simplifies obtaining a personal loan.
- Be Realistic About Loan Amounts. Requesting a larger loan amount increases the lender's risk. While the maximum available loan amount in Birmingham is $500,000, securing such an amount is challenging. Approval for smaller loan amounts is more likely, as they pose less risk to lenders. Assess your exact financial needs and request the minimum necessary loan amount. The minimum loan amount offered by lenders in Birmingham is $100.
- Consider a Joint Applicant. Exploring the option of a joint applicant can enhance approval prospects. Lenders consider the credit scores and incomes of both applicants. Alternatively, you may find a co-signer who agrees to repay the loan if you default. It is crucial to trust your joint applicant or co-signer since your financial circumstances will be intertwined.
Conclusion
Occasionally, obtaining a personal loan becomes necessary, so preparedness is essential. By taking proactive steps today, you can maximize your chances of being approved for a personal loan.