Are you in Texas and in need of some urgent cash to take care of your emergency bills? If so, a payday loan can help you take care of these emergencies. We share the best payday loans in Texas you can get right away, no matter your credit score.
You can take payday loans to quickly pay any unexpected bills like car repairs, forgotten overdue bills, medical bills, etc. You only have to repay this loan on your next paycheck.
Before applying for payday loans in Texas, there are a few things you must know. These are;
- What are the State regulations when it comes to payday loans?
- How much do Texas payday loans cost?
- What are the requirements in Texas for getting a payday loan?
- Can you still get a payday loan even if you are unemployed?
- How to apply for a payday loan if you are a Texas resident?
- Best payday loan alternatives in Texas.
What are the State regulations when it comes to payday loans?
Texas law offers protection to borrowers by banning lenders from dividing one loan into two to collect more fees. Some unscrupulous lenders used to partake in such shady dealings. But not anymore.
Unlike most US states, payday loans are still legal in the state of Texas. But there are some regulations put in place to protect both lenders and borrowers. I have broken down these regulations into three sections.
1.Statute of limitation:
A statute of limitation refers to the maximum period you can be liable against any criminal proceedings. In the case of payday loans, you are still liable for criminal charges within four years if you default on your loan repayment.
If the lender fails to sue you within these four years, you will be protected by the statute of limitation law. But it doesn’t mean the lender won’t report you to the credit bureau. Reporting you to the credit bureau will significantly damage your credit, affecting your ability to get good loans in the future.
2.The number of payday loans you can have at once:
There is no limit on the number of payday loans you can have in Texas. But do not take more than one payday loan because the interest rates are high. You might end up in a terrible debt trap which could be challenging to escape. Trust me; you don’t want to be in a debt cycle.
3.What happens if you don’t pay back a payday loan in Texas?
Payday lenders could file criminal charges against you if you default on your loan repayment. You can be arrested and go to jail if you don’t repay your loan.
As a borrower, you have to be responsible by committing to the loan terms and conditions. Failure to respect these terms and conditions will hurt you more than the lender. So, borrow responsibly.
How much do Texas payday loans cost?
In general, payday loans are the costliest loan you could ever find in the loan industry. The interest rates can exceed 400% in annual percentage rate (APR). You will have to pay at least $10 to $30 in interest rates on a 2 to 3 weeks period for every $100 you borrow. Some lenders will also charge origination fees of up to 10% of the total loan amount.
Let’s say you borrow $800, and the interest rate is 15% ($120) for two to three weeks. For some reason, you can’t repay the $800 + $120 when the loan is due. Most payday lenders will ask you to pay the interest rate for extending the due date for another two to three weeks.
So, you will pay $120 for extending the due date of your payday loan and still owe the principal loan amount plus the interest rate ($800 + $120). If you are not careful, you could end up paying $1000s interest rates for only borrowing $800.
You should only take payday loans if you are absolutely sure there is no other way to get the funds you need. Only borrow if you are 100% certain of repaying on time.
What are the requirements in Texas for getting a payday loan?
Before getting a payday loan in Texas, there are specific essential requirements you need to fulfill. If you don’t meet these requirements, you won’t be eligible for any payday loan in the state. These requirements are;
- You have a state-issued ID.
- Be at least 18 years or older.
- You must be a legal resident in the State of Texas.
- Your monthly income should at least be $1000.
- Have proof of income.
- Have an active checking account.
Although meeting the above requirements could get you a payday loan, some lenders might ask you for additional information.
Can you still get a payday loan even if you are unemployed?
So what if you are unemployed? Can you still qualify for payday loans in Texas? The simple answer is YES! Your monthly income source could be social benefits, alimonies, or any other means. As long as the monthly amount you receive is at least $1000, you are eligible for a payday loan.
Just make sure you can prove this monthly income in a document format like a bank statement, payslip, or checks.
How to apply for a payday loan if you are a Texas resident?
You can either go to a payday loan location near you or apply online. You can quickly find a payday loan sign within few 100 meters from your address. There are a lot of payday loan outlets in Texas.
Whether you choose to apply online or go to a physical location, ensure you have the documents ready to prove your eligibility. Just go to the lender’s location and apply in person. You can get the loan within few hours.
But if you decide to apply online, all you need to do is fill out the short online application form. The lender will ask you for documents to prove your identity, residence, and income. All you need to do is email the copies of these documents to the lender, and the funds will be transferred to your bank account in a few hours.
Payday loan alternatives in Texas
Like I mentioned before, you should only take payday loans if you are out of options. Exploring other options could be a wise decision depending on the circumstance. You are the only one who can better assess your current situation and make a decision.
Here are seven alternatives to payday loans you could explore right now.
- Assistance Center of Collin County
- GRACE
- Hill Country Community Action Association
- Christian Assistance Ministry
- Gulf Coast Community Services Association
- Community Loan Center of the Rio Grande Valley
- Hebrew Free Loan Association of San Antonio
These organizations will help you in times of need. Just make sure they know you need a loan to take care of your basic necessities. Otherwise, you won’t be able to secure the funds you need.
Other loan options you could consider
If the above alternatives are not the right solution for you, you can consider getting a personal loan online ➔. Personal loans could be the best choice to get a loan in as little as 2 hours after completing the online application.
The interest rates on personal loans are way cheaper than payday loans. You can even reschedule a less costly repayment if you default. Below are three lending platforms you can use to get a loan today.
Bottom-Line
Although getting payday loans in Texas is relatively easy, it can quickly trap you in a debt cycle. Instead, go for personal loans because they have lower interest rates and better terms and conditions.
