Is everything really bigger in Texas? Find out how much you can borrow in the Lone Star State.
If you’re in need of quick money, you may be considering a payday loan, also referred to as a short term loan or cash advance. It’s important to understand the laws that are in place to protect borrowers before you accept any offers.
Read through this guide to learn the ins and outs of payday loans in Texas.
LendUp Payday Loans
Apply for a payday loan conveniently online and borrow between $100 and $250.
- Min. loan amount: $100
- Loan term: 7–30 days
- Total costs: Depends on your state, loan product, loan amount and the term of the loan.
- Must be 18+ (19+ in Alabama)
- No security deposit needed
- Confidential and secure
- Visit the site to see if available in your state
Are payday loans legal in Texas?
Yes, payday loans are legal in Texas. Payday loans are governed by the Texas Finance Code, which applies to online and storefront loan providers. All lenders must be licensed in Texas and are required to clearly state the terms of the loan (how much you borrow and how long you borrow for) before you sign.
Although Texas regulates many issues in regards to payday loans, it is best to consider other options first. If you decide to take out a payday loan, keep in mind you usually must repay it within two weeks, and the interest rates are steep.
The maximum loan term depends on the amount you borrow. For a loan of $100 or less, it is either 6 months or 1 month per $10. For a loan greater than $100, it is 1 month for each multiple of $20, meaning a loan of $122 would be 6 months.
Fig Loans specializes in installment loans for Texas residents
A selection of short term loans you can apply for in Texas
Check the websites of any providers you’re interested in to confirm they operate in your state.
How a Texas payday loan might benefit you
Here’s why Texans might consider applying for a payday loan:
- You’ll get your money quickly. Traditional lenders can take days before giving you access to your funds, but most payday lenders offer a quicker application and disbursement process. If you apply in-store, you can get your money within an hour. If you apply online, you can expect funding by the next business day.
- You can use the funds for any purpose. What you do with a payday loan is up to you. You can use the money to get by until your next payday, travel, shop or pay bills.
- You can still apply with bad credit. You can apply for a Texas cash advance even if you have less-than-perfect credit. Payday lenders focus more on your ability to repay the loan.
- You can apply on-the-go. Finding Texas payday loans online is easy so you can apply from your home, office or anywhere you have access to the Internet. If you’re approved, the money will be transferred to your bank account.
How much does a Texas payday loan cost?
The Texas Financial Code stipulates the following when it comes to fees:
- Finance charges. For loans up to $30, a payday lender can charge no more than $1 for every $5 borrowed.
- Maximum interest rate. The maximum APR for a 14-day $100 loan is 309.47%.
- Acquisition charges. If the cash advance is between $30 and $100, an acquisition charge of one-tenth of the loan amount may apply. An installment account handling charge may also apply. For payday loans over $100, the acquisition charge can’t exceed $10, and the installment account handling charge can’t exceed the ratio of $4 for every $100 per month.
How to apply for a Texas payday loan
Applying for payday loans in Texas is simple, but you’ll have to meet some eligibility criteria in order to be considered.
- At least 18 years of age
- A US citizen or a permanent resident
- A regular source of income
Applications will require the following information:
- Your name, date of birth, Social Security number and a valid form of ID
- Your residential address, email address and phone number
- Details about your employment and income
- If you’re applying online, details of your existing checking account
Where else are payday loans available?
Compare payday loans in your state
Have any more questions about Texas short term loans?
What if I can’t pay back my loan by the due date?
- You will pay only the refinance fee (CAB fee and lender interest).
- Speedy Cash will pay off the original loan with the proceeds of a new loan. The finance fee for your original loan is due at this time.
- At the end of your new 6-month term, your loan principal, interest, and CAB fee for the new loan will be due.
Keep in mind refinancing (or rolling over) a loan comes with steep charges and keeps the amount of accrued interest. Before you take out a loan, be sure you can pay it back to avoid large fees.
If I want to apply online, how long might the process take?
Applying online takes no more than 5 to 10 minutes as long as you have the required information on hand.
Can I request a rollover if I can’t repay the loan on time?
You can convert your payday loan to a declining balance installment note if you can’t repay the loan on time. You won’t be able to get a rollover if the maximum interest rate exceeds the renewal charge.
What is the difference between Texas auto title loans and payday loans?
A payday loan does not require any collateral. An auto title loan uses your car as security.
Can I have more than one short term loan at a time?
Yes. Texas allows for any number of loans to be taken out at once.
Is there a legally required cooling-off period between my repaying one short term loan and getting the next?
No. There is no cooling-off period requirement in Texas.
How long does it take to get approved for a short term loan?
Depending on the lender, you can receive the funds in less than 24 hours.
Can a short term lender initiate criminal action against me if I don’t repay the loan?
It is technically illegal to do so, however, there have been cases of lenders filing suits against borrowers in the state. Be careful who you borrow money from and make sure they are a reputable lender.