Compare legal limits, fees and the true cost of small loans in your state before you talk to any lender. Compare legal limits, fees and the true cost of small loans in your state.
Credit Unions vs Payday Loans in Bessemer, AL
2 credit unions are headquartered in Bessemer, with 1,439 members in total. Credit unions are member-owned and often offer small personal loans and payday alternative loans (PALs) at far lower rates than payday lenders.
- Credit unions
- 2
- Members
- 1,439
- Federal
- 2
- State-chartered
- 0
Credit unions vs payday loan stores in Bessemer
Bessemer has 8 payday, installment and title loan stores but only 2 credit unions headquartered here — about 4.0 loan stores for every credit union. Local credit unions count 1,439 members — roughly 2 memberships per 100 residents.
Credit unions
2
2.7 per 100k residents
1,439 members
Payday & loan stores
8
10.7 per 100k residents
6 store chains
Biggest loan store chains in Bessemer: Check 'n Go (2), TitleMax (2), 1st Franklin Financial (1), Advance America (1), OneMain Financial (1).
What a $500 loan costs over 3 months
| Option | Payment | Total cost |
|---|---|---|
| Payday loan, re-borrowed 6 times (~456% APR) | $87.50 every 2 weeks | $525.00 |
| Credit union PAL, 3 monthly payments (28% APR + $20 fee) | $174.50 a month | $43.51 |
- You keep with a credit union PAL over 3 months
- $481.49 payday costs 12× more
Payday: the AL maximum — $87.50 on a $500 loan for 2 weeks, paid again each time the loan is renewed or taken out again (6 times in 3 months). PAL: payday alternative loan from a federal credit union, capped at 28% APR with an application fee of up to $20.
What it means for a household in Bessemer
- Median household income
- $60,201
- Payday fee of $87.50, share of two weeks' income
- 3.8%
- Hours of work to pay the $87.50 fee
- 5.5 hours
- PAL payment of $174.50, share of monthly income
- 3.5%
- A $400 emergency equals
- 2.4 days of income
- Households earning under $25,000
- 23.1%
- Residents below the poverty line
- 20.0%
Income and poverty: U.S. Census Bureau, American Community Survey, by ZIP code; figures for Bessemer are population-weighted and approximate. Hours of work are based on the median individual income.
Payday loans vs credit union PALs: the rules in Alabama
| Payday loan in AL | Credit union PAL | |
|---|---|---|
| Legal status | Allowed | Offered by many federal credit unions |
| Loan amount | $500 | $200 – $2,000 |
| Fee limit | 17.5% of advanced amount ($87.50) | Application fee up to $20 |
| Typical APR | ~456% | Up to 28% |
| Term | Usually 2–4 weeks, due in one payment | 1 to 12 months, in installments |
| Credit check | Usually none; a bank account and income are required | Membership required; payments can be reported to credit bureaus |
Payday rules: Alabama law as summarized on our Alabama payday page. PAL rules: National Credit Union Administration (NCUA) rules for federal credit unions (PAL I and PAL II); state-chartered credit unions may offer similar small loans.
Credit unions headquartered in Bessemer
| Credit union | Address | Members | Website |
|---|---|---|---|
| Marvel City Federal Credit UnionFederal | PO Box 713 Bessemer, AL 35021 | 947 | marvelcityfcu.com |
| U S Pipe Bessemer Employees Federal Credit UnionFederal | 2115 N 19th Street Bessemer, AL 35020 | 492 | — |
Payday and installment loan stores in Bessemer
For comparison: storefront payday, installment and title lenders in Bessemer with addresses, phone numbers and hours. Check a credit union first — a PAL or small personal loan usually costs far less.
| Address | Phone | Hours | Google rating |
|---|---|---|---|
| 501 W Town Plaza Bessemer, AL 35020 | (205) 426-4681 | — | 4.9 |
| 833 Allison-Bonnett Memorial Dr Ste 101 Bessemer, AL 35023 | (205) 744-3867 | — | 4.9 |
| 828 Allison-Bonnett Memorial Dr Hueytown, AL 35023 | (205) 497-4765 | — | 4.9 |
| 912 9th Ave N Bessemer, AL 35020 | (205) 425-5894 | — | 4.9 |
| 718 Academy Dr Ste 108 Bessemer, AL 35022 | (205) 426-0711 | — | 4.7 |
| 160 River Square, #22 Hueytown, AL 35023 | (205) 497-9873 | Mon–Fri 8:30 AM – 5:30 PM Sat–Sun closed |
— |
| 700 Academy Dr #100 Bessemer, AL 35022 | (205) 428-6237 | — | 4.8 |
| 833 Allison-Bonnett Memorial Dr Hueytown, AL 35023 | (205) 424-5057 | — | 4.9 |
More about Bessemer
Only credit union headquarters are listed, with the address on file with the NCUA; phone numbers and branch locations are on each credit union’s website. Many credit unions also have branches in Bessemer and nearby — check membership requirements, as some are open to anyone who lives or works in the area. Loan stores: storefront locations of major payday, installment and title lenders; call ahead to confirm hours.