Online Payday Loans in Texas

Why Online Payday Loans Are Popular in Texas

Many Texas consumers seek out online payday loans due to convenience and speed in the lending process. This type of loan allows many people who may have been denied a conventional personal loan the opportunity to obtain immediate cash for a short term expense. The most appealing aspect to these loans is that they provide the applicant with a way to get quick access to cash as opposed to going through the lengthy process associated with obtaining a conventional bank loan.

Fast review process: Online payday lenders may quickly evaluate your application once you have submitted it.

Limited credit barriers: Some Texas payday lenders may work with borrowers who have poor credit histories or no credit at all. Even though a credit check (or alternative review) may occur, the review process should not take very long.

Direct deposit funding: Once approved, funds are usually deposited directly into the borrower's bank account. Funding timeframes depend upon how quickly the lender can fund and process the transaction through the bank and any cutoff deadlines.

Online access: Borrowers can complete the application via the internet without having to visit a physical location of a lender.

Basic documents: Typically, lenders may only need to verify a few items about the applicant; however, other requirements may apply based on lender regulations.

Short-term use: Payday advances may provide temporary relief with expenses such as a car repair, medical bills, a utility problem or other short-term financial issues.

Can a Texas Payday Loan Affect Credit?

Many payday lenders do not report timely payment history to the three major credit reporting agencies; therefore, repaying a payday loan will likely have little effect on your overall credit score. Conversely, failing to repay a loan and sending it to collection could negatively impact your credit score.

What Texas Borrowers Should Expect

The cost of Texas payday lending is very high. In Texas, many Internet payday lenders are operating as Credit Access Businesses (CAB), which are essentially middlemen who assist consumers by arranging a loan from one lender and charging the consumer another fee for their services.

The total cost may be much more than the interest rate suggests due to this structure. Often, in Texas, the annual percentage rates (APRs) on payday loans are several hundred percent. As a result of these fees and renewal payments or missed payments added to the original loan amount, the final amount that will need repayment can grow quickly.

A good example of this is that if you take out a $1000 payday loan and let it roll over instead of paying it back within 120 days, the final amount you owe will exceed $3000. When reviewing a potential offer, look at the finance charge, CAB fee, due date, terms for renewal, and total repayment amount.

Local Payday Loan Rules in Texas Cities

Texas payday lenders are often affected by local rules as well. Many Texas cities have adopted ordinances with additional restrictions on payday lending. The rules could restrict loan size, renewal terms, payment structures, and the percentage of an individual's income that is being applied toward setting the loan.

The loan restrictions in each Texas city will vary; therefore, before applying for a payday loan, please verify the current regulations for your Texas city and ensure the loan fits your income level and next pay date.

Get Started with Your Texas Payday Loan Today

If you are in Texas and need money for an urgent personal need (e.g., a car repair), SlickCashLoan is here to help you get approved for a fast cash advance from one of our many lending partners.

When applying for a payday loan, use it only for short term financing needs. Also, make sure the loan amount does not exceed what you earn each month, is less than your next paycheck, and will allow you to pay back the lender on time so you don't have to worry about paying bills such as rent, electricity, groceries, gas, etc.

Texas Payday Loan Laws & Regulations

In Texas, many payday lenders work under what is called a Credit Access Business or CAB model. These businesses are covered by Texas Finance Code Chapter 393 and are overseen by the Texas Office of Consumer Credit Commissioner. A CAB may help arrange a payday loan through a third party lender and may charge a separate fee for that service.

Texas does not handle payday loan limits the same way many other states do. Because of this, the cost can change based on the lender, the CAB fee, the loan term, and any local city rules that may apply.