If you live in Texas and have a far-from-perfect credit score, you should consider getting an emergency loan from Power Finance Texas. Yes, this payday lender will give you a fighting chance when you are between a rock and a hard place.
Before you jump in on the opportunity, it’s good for you to learn what the lender is all about, especially because, in the recent past, most borrowers from Texas have cried foul against payday lenders.
But because you might not have a lot of time to review all possible lenders in Texas, we’ve taken it upon ourselves to provide you with a comprehensive guide/review of this payday lender. We shall go over the loan amounts, the rules that apply, and everything in between.
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What is Power Finance Texas?
Power Finance Texas is a CAB (Credit Access Business). It was set up in 1992 to provide responsible lending solutions to consumers who have below-average credit scores. The goal of the company is to meet its users’ financial needs when they need it most and conveniently. So far, Power Finance Texas has multiple locations in Texas to serve you better.
The locations include;
- Arlington – Arlington North
- Dallas – Love Field
- El Paso – El Paso East and Cielo Vista
- Houston – Galleria, Greenspoint, Houston Southwest, Houston East
- San Antonio – Castle Hills, Medical Center
Despite being in the same state, the terms of the loans vary. Why? Simple, because of the variations in City ordinances and the prevailing Texas laws.
Power Finance Texas gives unsecured loans ranging between $100 and $1,250 and it gives borrowers up to 6 months to repay the loan.
Being an emergency loan lender, you expect the APR to be high, right? But still, the 766% APR (maximum) comes as a shock to many borrowers. The APR varies with the loan term and how much you borrow. The reason the APR is so high is because Power Finance Texas is a CAB. This means that it is not a direct lender. Well, not according to the Texas laws it is not. It toes the line and in a way, can dictate how much it makes. This is great for the lender but it is bad for the borrower because it means you end up paying a lot more than you would have if regulations were in place.
If you choose to apply in person, you can get the loan on the same day, once it is approved. However, online applications are usually processed and deposited on the next business day.
How does a Power Finance Texas Loan Work?
As you’ll see, the loan is simple and fast.
The whole process starts with an application. Depending on your preference, you can apply for the emergency loan online or through any one of the ten physical stores in Texas. As you decide on which to choose, have in mind that an application at a store outlet is processed faster than one submitted online. The difference is a couple of hours and it’s mainly because verification is instant. But in an emergency, a couple of hours can make a world of difference.
When applying, you should specify the amount you wish to borrow between $100 and $1,250. The maximum loan term is six months and Power Finance Texas will expect you start payments on the next payday (unless in a special case).
If you are referred to Power Finance Texas by a friend who was kind enough to give you every detail you need down to how much the loan will cost, do not be shocked when you get different terms. This is so because Texas has varying city ordinances and laws. In as much as the loan amount determines the cost, the store you visit also adds some bearing to the costs.
Now, assuming you have filled out the form and submitted it for approval, the company will confirm receipt in 60 seconds. Afterward, they will do their due diligence to determine if you are good for the loan or not. As a bad credit lender, they are not keen on your credit score, but this doesn’t mean they offer loans to anyone who waltzes in their store or submits a form online. No, they conduct a soft check on your financial capabilities based on your income and expenditure (information you’ll have submitted through the form). At times, Power Finance Texas goes out of its way to contact your employer and confirm your status in the company. In case you are wondering, no, they do not disclose the fact that you are applying for a loan; they are wiser than that.
Depending on your financial status, Power Finance Texas will approve, alter the loan amount or reject the loan altogether. The two extremes are self-explanatory. But when does it change the loan amount? You see, as a payday lender, Power Finance Texas needs to be responsible in its lending, and there’s a percentage cap on how much a borrower can repay every month. If calculations of your income and expenditure show they will break the law, they adjust the loan amount.
Before the loan amount is disbursed, they present you with a loan contract which details the loan amount, how much you need to pay, and the loan term. Some fine details including lateness fees also apply. Despite it being an emergency, you are expected to read through the contract, understand it and make a conscious decision. But even if you don’t, the rules will still apply.
Once the loan hits your account and you attend to your emergency, you should prepare to repay the loan on your next payday. But before we get to how you repay, let’s have a look at how much the loan costs.
Under the Texas laws of short term lending, Power Finance Texas doesn’t qualify as a direct lender. Instead, it is categorized as a CAB. Under this description, they have the luxury of charging CAB fees in addition to the normal same day loan simple interest. The CAB fees are not subject to state regulations which means that Power Finance Texas charges as much as they want. Some borrowers have ended up paying up to three times their loan amount.
So how much is the APR? Brace yourself for this. It can go as high as 766%, depending on the amount you borrow and the store you borrow from. This is steep when you know other payday lenders have an APR of about 390%.
What is APR, and why is it such a big deal? APR stands for Annual Percentage Rate. It is one term in the loan and lending industry you should understand. This percentage represents what the lender will charge you to borrow a specific loan amount every year. It includes the interest rate and additional fees the lender charges to process the loan. In simple terms, it is the price of borrowing the loan.
So here is how it works. Assume you borrowed a $20,000 car installment loan at 7.5% fixed APR (this is super low, and we’ve only used it as an example) for five years and that the ender doesn’t have additional fees. If you pay all your monthly installments on time, by the end of the five years, you’ll have paid $24,000. Subtracting this amount from the original amount shows that the loan cost is $4,000.
There are two types of APRs; fixed and variable APR. With a fixed APR, you pay a constant interest rate throughout the loan term, while with a variable APR, the interest rate fluctuates depending on the index the lender chooses and the prime rate.
With this understanding, here is how much the Power Finance Texas loan costs and how much you’ll pay per month. Say you borrow $100 (the minimum amount) for the maximum six months with the 766% APR. Your monthly repayment will be $67.31. By the end of the six months, you’ll have paid back $403.86. This means that the loan cost is $303.86. Quite steep, right? Luckily, Power Finance Texas rarely applies the maximum APR.
Do they charge additional fees for early repayment?
Most payday lenders frown upon the thought of early repayment. Why, well, because it reduces the cost of the loan. You see, the emergency loan interest rate is calculated every day. If you pay before the due date, the company loses out on the maximum interest rate. To cover the cost of the lost ‘profit,’ some apply prepayment fees. However, Power Finance Texas encourages prepayment by not imposing this cost. If you get money before the due date, you repay manually and save money on loan costs.
Who is eligible for the loan?
Power Finance Texas offers bad credit loans. This means that individuals with poor credit scores qualify for the same. However, before they support staff goes through your loan application, they require that you meet specific requirements. These requirements are not designed to bar you from getting a loan. Instead, they are to reduce the workload of the company. Overall, they ensure that the company can provide fast turn arounds in regards to reviewing loan applications.
Below are some of the requirements Power Finance Texas adheres to:
- You should be employed for no less than three months or have a Social Security Number and benefits
- You should have an active checking account. It should have been in existence for more than 30 days
- You should have a phone number
- You should set up a direct deposit if you apply online
- You should earn no less than $800 if you are applying from a location store and $1,000 if you are applying online.
What loan products does Power Finance Texas offer?
Power Finance Texas only offers short term installment loans. However, it refers to it in different names, making it sound like it has several loan products while it does not.
What other store services does Power Finance Texas offer?
Power Finance Texas does not offer additional store services.
How do you apply for a Power Finance Texas Loan?
Once you determine that Power Finance Texas is the lender for you, you can visit one of their store locations or apply online (this much you know). The other option is calling 855-319-7288 and speaking to a representative that will take you through the application process.
Below is a quick breakdown of how you’ll apply for a loan:
- Visit the Power Finance Texas official website
- Enter your full name, your phone number, and email. Click on ‘Apply Now’
- Enter the personal information as required. Some of the information includes your monthly income, your bank account details, your birthday, and your address
- After filling these in, click ‘Apply Now’ to complete the application form.
Power Finance Texas may take a couple of minutes to process the application. But once you are approved, money is deposited into your bank account. If not, you can choose to submit the application form to a Power Finance Texas affiliate. However, the affiliate might not have the same terms.
What documentation do you need?
To complete the application process, you will have to provide Power Finance Texas with the following documents:
- Your State ID or driving license
- A check if you are applying at a physical store
- A recent bank statement
- A pay stub (the more recent, the better)
What states accept Power Finance Texas Loans?
As the name suggests, Power Finance Texas is only available in Texas. If you live in any other state, you cannot get the loan through this lender. You’ll have to consider other alternatives.
Is It Safe to apply for a loan through Power Finance Texas?
Power Finance Texas Customer Support
Looking through its website, you’ll notice that it’s simple and direct, but even though the company has simplified the whole process, there is still a need for customer support. The support team answers any questions you might have about the company, loans or gets you unstuck if you cannot figure things out. The team helps to give you a good experience on the platform.
Some customers claim that the team is friendly and helpful, while others have gone on record, stating that they felt harassed. Despite the mixed feelings, it’s important to note that the support team is not rated or accredited by the Better Business Bureau.
You can reach the support team through email, phone, or by visiting a physical store.
Pros and Cons of Power Finance Texas
Power Finance Texas is legit, and it provides emergency loans conveniently even to those who have bad credit. However, the loan can quickly get expensive because of the high APR. Because of this, before you apply for a payday loan, you should consider other options and make a comparison.
Does Power Finance Texas have a referral program?
Yes, it does. Every time you refer a friend to the platform, and they take a loan, you qualify for a $50 bonus.
How do I get in touch with Power Finance Texas?
You can visit any of their stores, or you can email them through [email protected] You can also call them through 855-319-7288.
What if I am a contract employee or I am self-employed, do I qualify?
Unfortunately, you don’t. Power Finance Texas is strict on its requirements, one of which is issuing loans to employed individuals. If you are a contract employee or run a business, you do not qualify.
Can I apply for the loan through my phone?
Yes, this is possible. But this does not change the requirements, terms of the loan, or how long it takes to review the loan.
How long will it take before I have the funds in my account?
Typically, you will have the loan amount in your account within a business day. However, this is subject to when you actually complete the loan and if you have all the necessary documents ready in time.
Can I use my social security allowance to represent my income?
If it is more than $800, yes, you can.
Does paying on time help me improve my credit score?
Power Finance Texas isn’t quite clear on this. But since it does not perform a hard credit score check, it’s less likely that being faithful in your repayments will improve your credit score. This is because to improve your credit score; Power Finance Texas will have to submit your details to the top three finance bureaus in the US.
Is there a grace period for the loan?
Unfortunately, Power Finance Texas doesn’t offer a grace period. After taking care of your emergency, you will start preparing to pay the loan with your next paycheck. If you cannot afford to make the payment with your next paycheck, you are better off not getting the loan in the first place. This is because you risk getting stuck in an expensive debt cycle.
Is Power Finance Texas licensed?
Yes, it is. The license number it operates under is 16296-59221. This means that it is a legit company.
Do I need collateral?
The fact that it is a payday loan means that you don’t need collateral to get the loan. The high APR is a sufficient reward for the risk Power Finance Texas undertakes.