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 Florence, AL
2 credit unions are headquartered in Florence, with 5,893 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
- 5,893
- Federal
- 1
- State-chartered
- 1
Credit unions vs payday loan stores in Florence
Florence has 7 payday, installment and title loan stores but only 2 credit unions headquartered here — about 3.5 loan stores for every credit union. Local credit unions count 5,893 members — roughly 9 memberships per 100 residents.
Credit unions
2
3.1 per 100k residents
5,893 members
Payday & loan stores
7
10.7 per 100k residents
7 store chains
Biggest loan store chains in Florence: 1st Franklin Financial (1), Advance America (1), Check 'n Go (1), Lendmark Financial Services (1), Security Finance (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 Florence
- Median household income
- $55,460
- Payday fee of $87.50, share of two weeks' income
- 4.1%
- Hours of work to pay the $87.50 fee
- 5.9 hours
- PAL payment of $174.50, share of monthly income
- 3.8%
- A $400 emergency equals
- 2.6 days of income
- Households earning under $25,000
- 24.2%
- Residents below the poverty line
- 16.4%
Income and poverty: U.S. Census Bureau, American Community Survey, by ZIP code; figures for Florence 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 Florence
| Credit union | Address | Members | Website |
|---|---|---|---|
| Florence Federal Credit UnionFederal | 1505 N Pine St, P.O. Box 2817 Florence, AL 35630 | 3,930 | ffcuonline.com |
| Lauderdale County Teachers Credit UnionState-chartered | 103 Mangum St Florence, AL 35630 | 1,963 | lctcu.org |
Payday and installment loan stores in Florence
For comparison: storefront payday, installment and title lenders in Florence 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 |
|---|---|---|---|
| 2701 W Mall Dr Ste 3 Florence, AL 35630 | (256) 718-0702 | — | 4.6 |
| 209 Cox Creek Pkwy. Florence, AL 35630 | (256) 760-0131 | Mon–Fri 8:30 AM – 5:30 PM Sat–Sun closed |
— |
| 962 Cox Creek Pkwy Florence, AL 35633 | (256) 765-0055 | — | 4.8 |
| 2701 Mall Rd #14 Florence, AL 35630 | (256) 275-4052 | — | 4.9 |
| 2085 Florence Blvd Florence, AL 35630 | (256) 764-3802 | — | 4.9 |
| 2701 Mall Rd Ste 9 Florence, AL 35630 | (256) 263-5434 | — | 4.9 |
| 233 Cox Creek Pkwy Florence, AL 35630 | (256) 764-9091 | — | 5.0 |
More about Florence
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 Florence 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.