A payday loan seems like a good idea if you need money. You have probably noticed different street shops offering loans; such locations can be found in almost every city in the United States. Moreover, even more lenders offer their services online. And the number of lending companies is growing every year. Why are cash advances so popular? Many people find payday loans online Texas the best solution to their financial difficulties. But are fast cash advances really that good? We will compare their pros and cons and tell you how payday loans work and are regulated in Texas.
Payday loans are short-term cash advances designed to cover small expenses. The principle of work of payday loans in Texas is the same as in other US states. But if you are just getting into the lending industry, you should familiarize yourself with the process before you borrow money. Therefore, let's consider what awaits you when you take out payday loans TX.
First of all, shop around to find the best deal. These days, loans are available both in stores and online. There are over 1 500 storefront payday lenders in Texas, and the number of online companies is even greater. Think about which option is best for your needs, but we advise you to resort to online providers, as this is a more convenient and faster way to borrow money. Keep in mind that direct lenders offer different fees and interest rates for instant payday loans TX, so make sure you choose the best option. Moreover, your lender must have an official license, check it if you do not want to become a victim of fraud.
Before giving you money, the lender needs to ensure that you can pay off the debt. So you fill out an application and wait for the approval. According to the eligibility criteria, you must be over 18, live in Texas, and have a stable income to qualify for Texas budget finance payday loans. In addition, you will need to provide the requested documents. On top of everything else, the lender is obliged to familiarize you with the terms of the loan, including fees, interest rates, and repayment terms, and tell you what will happen if you do not pay off the debt. The loan provider will also tell you what continuous payment authorities are and how to cancel them.
If you get approved, that's half the battle. Now, wait until the lender sends money to your bank card. This usually takes 1-2 business days.
You have 7 to 180 days to pay off your payday loan in Texas. It all depends on the type of your cash advance – whether it is single or installment. A single loan is traditionally repaid in 30 days. And you can extend your payment period up to 6 months if you choose payday installment loans TX.
The best and most convenient way to pay off your debt is to use a debit card. When you apply for a loan, you consent to the lender withdrawing money from your checking account. This is what is called a continuous payment authority (CPA). If there are not enough funds on your account to collect the debt, you will pay a late fee.
It happens that you cannot return the money within the specified period or do not have such an opportunity due to financial constraints. In this case, you can ask your lender for a rollover. Thus, you enter into a new agreement for the repayment of your loan. Keep in mind that rollovers involve additional interest rates, fees, and other charges.
The first thing you need to pay attention to when considering loan solutions is the legality of cash advances in your state. After all, if lenders provide their services in accordance with the law, they adhere to certain regulations regarding fees and loan terms and cannot exceed the allowable limits. This makes payday loans more affordable for customers and protects them from unscrupulous companies.
Are online payday loans legal in Texas? Payday loans have been legal in the state since 2001. All regulations are lined in 7 Tex. Admin. Code and Tex. Fin. Code Ann. §§342.251 et seq. Lenders can grant fast cash advances only if they have a license and disclose to the client all information about the loan before signing the documents.
In general, Texas is famous for its relaxed loan legislation, so the industry is growing rapidly. However, in 2011, the state government introduced stricter payday loan regulations for 46 cities. These are the restrictions they have imposed:
Cities that are subject to these restrictions:
Now let's consider the general TX payday loans laws. Take them into account if you are going to apply for a quick cash advance in Texas.
The maximum amount of online payday loans TX is not set by law. This means that you can borrow as much money as you want without any restrictions. But be careful, many people find themselves in a vicious circle of debt because they borrowed too much and had to resort to other loans to pay the money back. It's better to take off a small loan, pay it off, and apply for another one if you need to.
There is no maximum fee you need to pay for instant same-day payday loans online Texas. So APR can reach 400% and even more. If your cash advance is less than $40, the acquisition charge will be no more than $1 per $5 borrowed. If your loan is greater than or equal to $30 but less than $100, the acquisition charge will be:
If your cash loan is greater than $100, lenders are allowed to charge you:
The maximum repayment period for Texas cash payday loans is 180 days or 6 months. The minimum term is also set – 7 days. However, you can pay off the debt before the specified due date. In this case, the lender is obliged to return the fees that you have already paid for the cash advance.
Texas law is just as loyal to rollovers as to the rest of payday loan terms. That is, you can extend the period of debt payment an unlimited number of times. Please note that you can get no more than 3 rollovers in cities with the ordinance.
Statute of limitations
This is the period during which the lender can demand their money back and take you to court. When this period expires, the court no longer has the right to present you with any claims for non-payment of the debt. The statute of limitations in Texas is 4 years.
Number of outstanding loans
How many payday loans can you have in TX? Texas residents can take out an unlimited number of payday loans. In addition, there is no cooling-off period. That is, you can take out many cash advances one by one without waiting a single day. This is a good option for those who apply for small loans and pay them off on time.
Some people take out same-day payday loans TX regularly, while others try to avoid them in favor of other types of lending. Who is right? Can a payday loan solve your financial problems, or maybe it is better to look for alternatives? We'd like to bring to your attention the pros and cons of cash advances in Texas so you can compare them and decide whether to take out a payday loan.
Loan charges in Texas may vary depending on the lender and the amount you borrow. Typically, lenders charge a $20 fee for every $100 of a payday loan. That is, if you borrow $1 000, the total cost of your cash advance will be $1 200.
Basic requirements to apply for easy payday loans TX are:
Payday lending regulations in Texas allow you to repay the full loan amount ahead of schedule. Moreover, the lender will even return the fees you have already paid for the full term of the loan.
Absolutely. Texas law allows you to take rollovers an unlimited number of times. However, if you live in one of the cities with the loan ordinance, lenders may offer you only 3 rollovers.
There are two options for paying off your loan in Texas – single and installment. The first involves one payment, often 30 days after receiving the loan. And installment cash advances are paid off in equal parts for up to 6 months.