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Alabama Residents, Say No to Payday Loans

June 26, 2015
Loans, Payday Loans
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If you’re in Alabama and considering a payday loan, think again.

Payday loans are short-term loans that trap consumers in a debt cycle with high interest rates and unforgiving repayment periods.

If a two-week payday loan is not paid off on time in Alabama, the interest rate on that loan can reach 461% annually, which is among the highest rates in the country, according to a study by the Pew Charitable Trusts. This means you could end up paying $461 in annual fees for a loan that was originally $100.

These predatory lenders are found throughout the state, which has 967 more payday loan storefronts than McDonald’s restaurants.

NerdWallet is just getting started in its educational campaign against predatory lending and is working with the Gateway Foundation and Alabama Appleseed to provide Alabama consumers with alternatives to payday loans.

Before taking out a payday loan, contact Gateway first: Its program, Gateway Financial Freedom, gives you confidential, individual advice about debt management, budgeting, and mortgage and foreclosure counseling.

Credit unions can be a great alternative to payday loans. They protect consumers by offering lower interest rates and longer repayment periods. They’re also more flexible lenders; they work with their customers to help them manage their money.

Note that you must be a member of most credit unions to apply for their loans. The cost of membership varies from $10 to $35, an investment that could save you hundreds or thousands of dollars when compared to average payday loan fees. We’ve found that many credit unions offer short-term loans with annual percentage rates (APRs) ranging between 6% and 23%, but you should contact individual lenders for the most current information on short-term loan offers.

Here are some alternative lenders across Alabama, compiled and recommended by Alabama Appleseed:

Alexander City

Mutual Savings Credit Union

1030 Lee St.; (256) 234-3821

Birmingham Metro

eCo Credit Union (Bessemer)

4933 Promenade Pkwy. #113; (205) 226-3944

Railroad Credit Union (Irondale)

1808 2nd Ave. S; (205) 956-0678

City of Birmingham

NRS Community Development Credit Union

7400 London Ave.; (205) 833-3556

APCO (Alabama Power Company) Credit Union

750 17th St. N; (205) 226-6800

Avadian Credit Union

613 19th St. N; (205) 985-2828

Legacy Community Credit Union

1400 S. 20th St.; (205) 933-9933

Secure First Credit Union

2725 35th Ave N; (205) 520-2115

Landmark Credit Union

5705 Valley Rd.; (205) 783-9100

Coosa Pines Credit Union

524 Red Lane Rd. #B; (205) 838-2466

America’s First Credit Union

1819 20th Street Ensley; 205-781-4220

ANG Federal Credit Union

5401 E. Lake Blvd.; (205) 841-4525


Brewton Mill Federal Credit Union

2549 South Blvd.; (251) 867-3162


IAM Community Federal Credit Union

467 S. Daleville Ave., PO Box 366; (800) 343-9933


Alabama Central Credit Union

3048 Finley Island Circle; (256) 351-7880

Park Community Credit Union

2328 Point Mallard Dr. SE; (256) 353-3616

Wolverine Credit Union

2505 Highway 31 South; (256) 355-5010


Army Aviation Center Federal Credit Union

123 S Woodburn Dr.; (334) 671-1890

Five Star Credit Union

411 North Foster St.; (334) 793-7714

Wiregrass Credit Union

326 Honeysuckle Rd.; (334) 793-3667

Tyndall Federal Credit Union

3116 Ross Clark Circle; (334) 792-3306

APCO (Alabama Power Company) Credit Union

2220 Montgomery Highway; (334) 793-7226


Alabama Teachers Credit Union

702 Walnut St.; (256) 543-7040

WinSouth Community Credit Union

110 S. 26th St.; (256) 543-7302


North Alabama Educators Credit Union

2309 Whitesburg Dr. S; (256) 534-2423

Redstone Federal Credit Union

220 Wynn Dr. NW; (800) 234-1234

Rocket City Federal Credit Union

2200 Clinton Ave.; (256) 533-0541


New Horizons Credit Union

6320 Airport Blvd.; (251) 316-3240

University of South Alabama Federal Credit Union

103 Hillcrest Rd.; (251) 706-0255

Gulf Coast Federal Credit Union

1001 Springhill Ave.; (251) 438-7464

Mobile Educators Credit Union

3150 Airport Blvd.; (251) 473-4712

Navigator Credit Union

1175-A Hillcrest Rd., Suite 7; (800) 344-3281

Mobile Government Employees Credit Union

109 St. Joseph St.; (251) 694-4100

The Infirmary Federal Credit Union

5 Infirmary Circle; (251) 435-5900


Alabama State Employees Credit Union

1000 Interstate Park Drive; (334) 270-9011

Montgomery VA Federal Credit Union

345 Perry Hill Rd.; (334) 272-7790

Navy Federal Credit Union

2767 Eastern Blvd.; (888) 842-6328

APCO (Alabama Power Company) Credit Union

244 Dexter Ave.; (334) 834-5144

Energen Credit Union

2914 Chestnut St.; (334) 263-7077

Guardian Credit Union

616 Madison Ave.; (334) 242-5484

Tri-Rivers Credit Union

400 Arba St.; (334) 834-7483

Fedmont Federal Credit Union

330 Eastdale Circle; (334) 270-5532

Alabama Rural Electric Federal Credit Union

340 TechnaCenter Drive; (334) 215-7328

Muscle Shoals

Listerhill Credit Union

4790 E. 2nd St.; (256) 383-9204

TVA Community Credit Union

TVA Reservation; (256) 386-3000

Valley Credit Union

200 E. 6th St.; (256) 381-3335


Four Seasons Federal Credit Union

2915 Pepperell Pkwy.; (334) 745-4711


Riverdale Credit Union

198 Highland Ave.; (334) 872-9096


Alabama Credit Union

220 Paul W. Bryant Drive East; (205) 348-5944

RiverFall Credit Union

2520 6th St.; (205) 759-1505

City Credit Union

2302 Jack Warner Pkwy. NE; (205) 349-4209


Valley Credit Union

200 E. 6th St.; (256) 381-4800


Tuskegee Federal Credit Union

304 W. Montgomery Rd.; (334) 727-3180

If you’re not from Alabama and need to find a credit union near you, try using this tool to locate the nearest institution. Visit the websites of individual credit unions to learn more about their small-dollar loan options, and check NerdWallet for updates on alternatives in other states.

Image via iStock.