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 Dothan, AL
1 credit union is headquartered in Dothan, with 66,938 members. 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
- 1
- Members
- 66,938
- Federal
- 0
- State-chartered
- 1
Credit unions vs payday loan stores in Dothan
Dothan has 13 payday, installment and title loan stores but only 1 credit unions headquartered here — about 13.0 loan stores for every credit union. Local credit unions count 66,938 members — roughly 77 memberships per 100 residents.
Credit unions
1
1.2 per 100k residents
66,938 members
Payday & loan stores
13
15.0 per 100k residents
9 store chains
Biggest loan store chains in Dothan: TitleMax (3), 1st Franklin Financial (2), OneMain Financial (2), Advance America (1), Check 'n Go (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 Dothan
- Median household income
- $57,050
- Payday fee of $87.50, share of two weeks' income
- 4.0%
- Hours of work to pay the $87.50 fee
- 5.6 hours
- PAL payment of $174.50, share of monthly income
- 3.7%
- A $400 emergency equals
- 2.6 days of income
- Households earning under $25,000
- 22.5%
- Residents below the poverty line
- 19.1%
Income and poverty: U.S. Census Bureau, American Community Survey, by ZIP code; figures for Dothan 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 Dothan
| Credit union | Address | Members | Website |
|---|---|---|---|
| Five Star Credit UnionState-chartered | PO Box 2028 Dothan, AL 36302 | 66,938 | fivestarcu.com |
Payday and installment loan stores in Dothan
For comparison: storefront payday, installment and title lenders in Dothan 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 |
|---|---|---|---|
| 1085 Ross Clark Cir #1 Dothan, AL 36303 | (334) 673-2220 | — | 4.9 |
| 3255 S Oates St #9 Dothan, AL 36301 | (334) 350-3014 | — | 5.0 |
| 3565 Montgomery Hwy Ste. 2 Dothan, AL 36303 | (334) 712-0920 | — | 5.0 |
| 2000 Ross Clark Cir Dothan, AL 36301 | (334) 794-1178 | — | 4.9 |
| 2155 E Main St Suite 4 Dothan, AL 36301 | (334) 792-2940 | — | 4.8 |
| 1604 Ross Clark Cir #105 Dothan, AL 36301 | (334) 794-2681 | — | 4.6 |
| 3525 Ross Clark Cir Ste 204 Dothan, AL 36303 | (334) 792-2163 | — | 4.7 |
| 3255 S. Oates, Ste. 1 Dothan, AL 36301 | (334) 702-9100 | Mon–Fri 8:30 AM – 5:30 PM Sat–Sun closed |
— |
| 3123 Ross Clark Cir Ste 6 Dothan, AL 36303 | (334) 370-9695 | — | 4.9 |
| 1209 Ross Clark Cir Ste 2 Dothan, AL 36301 | (334) 403-5513 | — | 4.3 |
| 4871 Montgomery Hwy Ste 10A Dothan, AL 36303 | (334) 803-8540 | — | 4.4 |
| 2969 Ross Clark Cir #2 Dothan, AL 36301 | (334) 231-3307 | — | 4.8 |
| 2643 Montgomery Hwy #3 Dothan, AL 36303 | (334) 792-2976 | — | 4.3 |
More about Dothan
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 Dothan 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.