Payday Loan Rules in Alabama

There are a few unique payday loan rules in Alabama that customers can count on to help keep them safe. These rules are put in place to protect the customers and to help them find honest dealers to get a loan from. It is important for anyone looking to get this type of loan to make sure that they are going to be dealing with a reputable lender that follows all of the specific rules for the state of Alabama.

Alabama customers can use a payday lender that runs a brick and mortar business or that offers an online business. The best choice will depend on each customer's individual needs. The maximum loan amount from a lender is $500 dollars. Clients can choose to receive loans for less money if they would like to.

A payday loan in Alabama has a minimum and maximum length of time. Customers can get a loan for a minimum of 10 days. The maximum amount of time that a loan can be given is 31 days. Clients should pay the loan back within this set amount of time if possible. There is one rollover loan available. If a client cannot pay off the loan by the due date, they can roll it over just once. This will give them a little more time to repay the loan.

After a customer has receive two loans in a row, there is a mandatory cooling off period. This means that the loan must be paid in full, and the customer cannot redo the loan until the next business day. It gives customers a little time to decide if they want to redo the loan or not.

There is a set interest rate on payday loans in this state. Clients will receive a 17.50 percent or a 3 percent interest rate per month after default. The annual percentage rate or APR of a 14-day loan is 456.25 percent.

Many people choose to get a payday loan in Alabama. This short term loan can be a good decision as long as customers choose trustworthy lenders that follow the rules.

Small Loan For Short Period

You should think of a cash advance payday loan if you immediately need a small sum of money for a very short duration. The amount you can borrow is not more than 1000 dollars and the duration should also be not more than two weeks typically. Here, you should keep in mind that quick cash advance payday loan is designed to help you in times of financial emergencies, so you have to pay additional fees along with the interest charges also.

Cost Of Loan

Depending upon the lenders of quick cash advance, fees may range anywhere between $15 and $30 for every 100 dollars borrowed. You promise to pay back the loan amount to the lender on your next pay day. People, who choose cash advance payday loan, are those who want to avoid the complicated process of getting a traditional loan. Moreover, there is no surety that you will be able to get the money from a traditional lender exactly when you need it the most. This is because most of the traditional lenders take a long time to approve loan applications.

Quick payday loan lenders, on the other hand, claim to provide you the required money within 24 hour of submitting your loan application. This is great feature that attracts people towards this tool. People are willing to pay a high cost just because they get the money well in time. When we analyze the overall situation, we can understand that there is nothing wrong in availing cash advance payday loan even if you have to pay a little extra cost.

Consider a situation when you need money to pay an emergency medical bill. This is situation when the cost of money becomes completely irrelevant because you are borrowing money to save a life. Furthermore, you also save money on late fees and penalties by using cash advance payday loan to pay urgent utility bills on time. All in all, we can say that the time factor is more important than the cost of loan in these circumstances.

Now we should also know what the qualifying requirements to avail these quick cash advance payday loans are. First of all, you should be a US citizen above 18 years of age. You should be getting more than $1000 per month from a stable job. Finally, you also need to have a valid checking account.