Are Payday Loans Available In Texas?

A payday loan is a relatively small amount of money borrowed, and, as a rule, for a fairly short period of time.

So, the main characteristics of a payday loan are:

  • issued not by a bank, but by a specialized credit organization;
  • a small amount: on average about $800 in Texas;
  • short term: most often, a small-dollar loan taken out for a period of 7 to 180 days;
  • quick application: in most lending services, the application is considered for no more than an hour, and, for example, many landers give an answer to the request within a few minutes;
  • more loyal, in comparison with banks, requirements for the borrower and a simplified procedure for issuing money in debt: the approval usually does not imply the assestment of a credit history, provision of collateral or surety. Refusal to grant a loan is a fairly rare phenomenon;
  • a relatively high rate: mant lenders in Texas charge a commission of up to 1-2% per day for their services.

Are Payday Loans Available In Texas

Let’s grapple with the table below that relates to the main parameters of payday lending options in Texas.

Legal Status Legal
Interest Rate (APR) Can exceed 400%
Maximum Loan Amount Not Specified (on average $800)
Minimum Loan Term 7 days
Maximum Loan Term 180 days
Number of Rollovers No restriction
Number of Outstanding Loans Not Specified
Cooling-off Period None
Installment Yes

Types of payday loans available in Texas

Small loans are divided into the following types:

  1. Short-term
    The most common type. The client needs to repay short-term small-dollar loans in a very limited period: up to 30 days. If you need a loan to the card urgently, this option is probably suitable — and with the nearest salary to pay it back.
  2. Medium-term
    Here the borrower is given from 2-3 months to several years to pay off his debt.
  3. Long – term
    Long-term loans imply a bigger amount, even if they are characterized as payday loans. Repayment usually takes place over a long period, payments are made in equal parts.

Who applies to payday lenders in Texas?

People of different age and social status apply for payday loans: from students to pensioners, from the unemployed to employees of organizations with high paychecks. According to the results of micro-credit market research, among those who take out extra loans, prevail:

  • younger people;
  • unmarried;
  • having no children;
  • those who do not have a higher education;
  • employed in trade and services, without official employment;
  • having an income at the average level and below.

Therefore, mainly those people address lenders who:

  • there was an urgent need for a relatively small amount of borrowed funds;
  • there is no possibility (or desire) for various reasons to quickly borrow money from other sources;
  • there is confidence in the repayment of the debt in a short time (in a few days, maximum within a month) to avoid huge overpayments.

Why do Texans take out payday loans?

Cash in several hours

It is possible to borrow money without unnecessary hassle today thanks to payday lending options, you will only need an ID. The application is filled out at the office of the chosen lending service or without leaving home on the organization’s website. The online application specifies contact and passport details, information about the place of work, as well as the method of receiving money (in cash, to a bank card or an electronic wallet).

As a rule, a decision on the application is made within 10 minutes and, if approved, the money is transferred to the client in the way chosen by him. Money is credited to electronic wallets instantly, and several days can take funds to be deposited to the card.

It is simple and convenient to return a loan or extend the agreement

After the expiration of the contract, the payday loan must be returned, also paying interest for use. There are many repayment options today: in cash, by bank transfer or using ATM. In cases of financial difficulties, you can extend the contract an unlimited number of times by paying the basic interest. If you have difficulties, do not avoid calls from the organization’s security service — an open dialogue will help avoid trouble.

Category: General

Tags: cash advance, finance, payday loans, Texas