Are you on the lookout for a payday loan in Texas? Unlike other states in the US, the laws surrounding payday loans in Texas are somewhat lax. Not only are there no limits to the amount you can borrow and for how long, but the APR rates on payday loans are not capped. As such, the interest that you pay on your loan will have a direct correlation to your credit profile and financial standing.
With that being said, it’s wise to brush up on your knowledge of what to look out for when choosing a Texan payday loan lender. Not only do you need to have a firm grasp of how much interest the lender is likely to charge, but you also need to assess repayment terms, funding times, and late payment policies.
As such, we would suggest reading this in-depth guide on Texas Payday Loans Lenders in 2020. Within it, we’ll discuss the ins and outs of the laws surrounding payday loans, how much you can borrow, funding times, and more.
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What are the Laws Surrounding Payday Loans in Texas?
Texas is one of the few states in the US that has super-lax laws surrounding payday loans. While certain locations – such as California, New Jersey, and Ohio – have installed legislation to cap the amount you can borrow and the maximum interest that can be charged, such regulations do not exist in Texas. On the contrary, there are no limits to the amount that payday loan companies can loan you.
The specific amount that you will be able to borrow will, of course, depend on your financial profile. For example, if you’re in receipt of a bad credit rating, you might be limited in how much you can take out from a payday loan. Texas is also notable in the payday loan space because it does not have a maximum loan term.
For example, while payday loan lenders in California can only lend money out for a maximum of 31 days – without no extensions, such regulations do not exist in Texas. Crucially, this is also the case when it comes to interest. State legislators have not imposed any limits on APR rates on payday loans, meaning that lenders can charge whatever they want.
While you will never be forced to accept a loan offer that is presented to you, many borrowers will accept highly unfavorable terms anyway because they have nowhere else to turn. With that said, the average APR rate charged by payday loan lenders in Texas is 662%.
Pros and Cons of Payday Loans in Texas
Best Online Payday Loan Companies in Texas 2020
How to Choose a Payday Loan Lender in Texas?
On one hand, a lack of strict payday loan regulations in Texas has opened the floodgates, meaning that there are now hundreds of providers to choose from. In fact, the vast majority of these loan companies have an online presence, so you can often complete the entire application process from the comfort of your own home. However, this also makes it a difficult task knowing which payday loan lender to go with.
To help you along the way, we’ve listed some of the key metrics that you need to look out for prior to choosing a payday loan lender in Texas.
No Visit Required
First and foremost, you should choose a Texas payday loan company that offers a 100% online service. By this, we mean that there is no requirement to visit a physical branch. Although this is somewhat of a rarity these days, some Texas lenders are known to ask you to visit a store to hand in ID documents, or to sign the loan agreement in person.
This shouldn’t be required in 2020 – so always go with a lender that allows you to complete the entire end-to-end process online or via your mobile device.
Representative APR Rates
As payday loan companies in Texas are not capped in how much interest they are permitted to charge, you need to make some serious considerations regarding the costs of the loan. In most cases, you won’t know how much you will be charged until you actually make an application, as APR rates are based on your creditworthiness and historical relationship with debt.
With that said, lenders will typically list a representative rate. This, at the very least, should give you an idea as to the kind of interest rates that the lender charges.
If you’re in the market for a payday loan in Texas, then it’s likely that you need access to fast emergency funding. If so, you’ll want to go with a lender that offers quick funding times. In some cases, the lender might be able to forward your loan funds into your checking account on a same-day basis.
If not, you should expect the funds no later than one working day after being approved. The only exception to this rule is if the Texas payday loan lender requires supporting documentation from you. This could be a government-issued ID to prove your identity, or a bunch of recent pay stubs to verify your income.
Loan Size and Term
You also need to assess how much the Texas payday loan company is willing to loan out. Lenders usually list a loan range, such as $250-$1,000 or $300-$750. Although this should give you an idea as to how much you can borrow, you might get less than what you applied for if your credit profile is less than ideal.
Similarly, you also need to assess the loan terms offered by the lender. In most cases, you will need to pay back the borrowed funds in one repayment when you next receive your salary. However, some lenders will give you slightly longer if you need it.
How can I get a Payday Loan in Texas Today?
Are you based in Texas and looking for a payday loan today? If so, follow the quickfire guidelines outlined below.
Step 1: Choose a Texas Payday Loan Lender
Your first port of call will be to choose a payday loan company that services Texas residents. The best way for you to do this is to follow the guidelines we have discussed above. In doing so, you will be able to choose a lender that meets your personal requirements.
However, if you don’t have the required time to search for your own lender, we have listed our top picks further up in our guide. Just make sure that you read through the terms of your loan before signing the digital loan agreement.
Step 2: Apply Online
Once you have found a Texas payday loan company that meets your financing needs, you will then need to begin the online application process. When you first head over to the lender’s website, you will need to state how much you wish to borrow and for how long. For example, if you want to borrow $300 for 24 days, state this at the initial stage of the application.
As is the case with all online lenders, you will then need to supply some personal and financial information. This will include:
- First and Last Name
- Home Address
- Date of Birth
- State ID Number
- Contact Details
- Income After-Tax
- Name and Address of Employer
- How Long You Have Lived at Current Address
Step 3: Review Loan Terms
Once you have completed the application form, the lender will then run some checks on the information that you provided. If a hard inquiry is being executed at this stage, the lender will run a full credit check on you. This will allow the lender to reach a decision on your application in less than a minute.
If you are approved, the payday loan company will then list your loan terms on-screen. This will include the amount they are happy to lend you, for how long, and at what interest rate. You’ll also see details of what your repayments will amount to.
Step 4: Bank Details and Digital Loan Agreement
If you are happy with the terms offered by the Texas payday loan lender, you will then be asked to enter your checking account details. This is because the lender will likely transfer your loan funds into your bank account. When it comes to repaying the loan, most payday loan companies in Texas will take the repayments from the same checking account. In order to do this, you will need to agree to an electronic debit agreement.
This authorizes the lender to take your repayments automatically. Finally, you will then need to sign the digital agreement. You are advised to take your time reading through the agreement prior to signing it, just to make sure you have a firm grasp of the underlying costs, as well as the lender’s policy on late payments. Once you do sign it, you should receive the funds within 0-1 working days.
Am I Eligible for a Payday Loan in Texas?
With lending laws surrounding payday loans fairly lax in Texas, eligibility requirements are often low. With that being said, not everyone will be eligible for a payday loan, and the specific requirements will vary from lender-to-lender.
Nevertheless, we’ve listed some of the minimum requirements that you will likely need to meet to be approved for a payday loan in Texas.
Regular Source of Income
Payday loan companies will almost always ask that you have a regular income of some sort. Although lenders prefer those that are in full-time employment, this isn’t always the case. On the contrary, some lenders will consider other forms of income – such as benefits or a pension.
Crucially, the lender might stipulate a minimum income amount that you will need to meet to be eligible, so be sure to check this before applying.
Minimum FICO Credit Score
Some lenders will ask that you meet a minimum FICO score to be eligible. However, if you’re using a specialist bad credit lender, the provider will likely look at metrics other than just your FICO score.
History With Repaying Debt
One of the most important factors that payday loan lenders in Texas will look at is your historical relationship with debt. This relates to whether or not you have previously fallen behind on your debt obligations, or previously defaulted on a loan. If you have, and the lender is still happy to consider your application, you should expect to pay an extortionate amount of interest of the loan.
Texas Resident and 18+
You will need to be a resident of Texas to get a payday loan in the state. You will be asked to prove this by entering your state ID number. If the lender is unable to verify this electronically, you might be asked to upload a copy of the ID. You will need to be aged at least 18 years old to get a payday loan in Texas.
Alternatives to a Texas Payday Loan
Not keen on paying a huge amount of interest on your loan, or need to borrow the funds for longer? If so, it might be worth considering an alternative to a payday loan. At the forefront of this are personal loans – which not only come with lower interest rates and larger funding amounts, but you’ll be able to borrow the funds for much longer.
If you have read this guide on Texas payday loans from start to finish, you should now have the required information to find a lender that is right for you. In a nutshell, state lending laws in Texas are rather thin in comparison to other states. In fact, there are no limits to the amount you can borrow via a payday loan, nor are there any caps on the length of the term. Crucially, there are no restrictions on how much interest the lender can charge, so be wary of loan providers that seek to charge extortionate rates.
With that being said, obtaining a payday loan in Texas has never been easier. You simply need to apply for your required financing amount online, and most lenders will then give you a decision in less than a minute. Once you are approved for a payday loan, the Texas lender will likely forward the funds to you on a same-day or next-working-day basis. However, it is also important to note that obtaining a payday loan should be a last resort action. Ultimately, never take out a loan unless you are 100% sure you can afford to pay it back on time.
Can I apply for a payday loan online if I live in Texas?
Yes, payday loans are legal in Texas. In fact, the state is home to some of the weakest payday loan laws in the US, so you shouldn't encounter any restrictions on loan sizes or terms.
How much interest can payday loan companies charge in Texas?
Unlike other states in the US, there are no limits to what payday loan companies in Texas can charge you. With that said, the average APR rate on Texas payday loans is 662%.
How much can I borrow with a payday loan in Texas?
’State lending laws do not place any restrictions on funding amounts. As such, the amount you can borrow on a payday loan in Texas is up to the lender you go with.
How long can I take out a payday loan for in Texas?
There are no limits to the amount of time you can take out a payday loan for in Texas. However, you will usually be asked to repay the funds when you next get paid.