Key takeaways
- Many Texas loans come with same-day funding, but interest rates and fees can vary.
- Payday loans are easy to qualify for but often need to be paid within two weeks and come with higher costs.
- Installment loans offer more flexible payment options, making them a better choice for larger expenses.
Do you need a little extra cash to cover an emergency expense but don’t have time to visit a bank and wait days for a decision? That’s where online loans come in. Many financial institutions have moved online, making it easier than ever to borrow money. You can find online installment loans, payday loans, or advances – anything you need from the comfort of your home. Many online installment loans in Texas don’t even require a credit check.
If you’re interested, read on to learn more about personal loans you can find in Texas and how to get fast cash.
Same-day loans with instant funding
If you need immediate financial help, loans with same-day funding can be a fast and convenient option. Many financial institutions in Texas offer instant approval, so you can receive your funds within hours of applying. Some don’t even require a credit check. Auto title loans, payday advances, and installment loans are all options for instant cash. To find one of these products, look into a credit access business near you.
Auto title loans
An auto title loan uses your vehicle’s title as collateral in exchange for cash. The lender gives a lump sum of 25% to 50% of your vehicle’s value. To qualify, you must own your vehicle outright. You repay the money – plus interest typically equivalent to a 300% APR (annual percentage rate) – within 30 days. If you fail to do so, the lender can repossess your vehicle.
Payday loans in the Lone Star State
Payday loans or advances are for small amounts—$800 on average. You can typically find instant approval and fast funding with no credit check. Instead, you must provide a paystub and have an active bank account to qualify. The application process is straightforward, and the money is sent either to your bank or debit card.
Online payday loans in Texas come in two forms: single or traditional (due within two weeks or one month) and installment loans (due within four to six months).
The catch is that they come with high fees. UStatesloans.org found that the APR can exceed 400%, the minimum term is only seven days, and there are no restrictions on rollovers. The short repayment term of seven to 180 days, coupled with the high APR, makes advances difficult to pay back on time. Many borrowers end up rolling them over, leading to a cycle of debt.
Looking for $1,000?
Bad credit installment loans in Texas
An installment loan is when payments are made over a few months to a few years. The regular monthly payments make it easier to budget. Many institutions offer online installment loans in Texas. You can access up to $50,000, depending on the institution and your qualifications.
It is possible to secure online installment loans, even if your credit isn’t perfect. Many lenders will consider your income, education level, employment history, and debt-to-income ratio, putting less emphasis on your credit score.
You can also visit a payday lender and be approved the same day. They will require you to repay the funds over four to six months. While easier on your budget, they are still an expensive form of borrowing. Pew Charitable Trusts found that a $500 payday advance paid over four-monthly installments comes with $645 finance charges, equal to a 527% APR. That means that the full repayment amount is $1,145.
No matter which type of borrowing you choose, compare offers from multiple financial institutions and read the fine print. Instant approval is appealing, but it can be costly.
Need money but don’t have a job?
Texas online installment loan details
Texas installment loans provide a flexible alternative to short-term cash loans. They allow borrowers to repay the money over an extended period in a fixed schedule of monthly payments. The term ranges from a few months to a few years.
Interest rates vary depending on the lender and your credit score. The APR typically ranges from 6% to 35.99%. Rates can go higher, especially if you have a score below 670. In addition to interest, you’ll likely pay fees. Before you sign an agreement, always read through the terms and conditions carefully to fully understand the costs.
Installment loan amounts range from $100 to $50,000. The exact amount you’re approved for will depend on your qualifications and the lender’s criteria. Borrowers with better credit scores and higher income usually qualify for higher amounts, while those in a lower income bracket will likely be offered smaller sums.
Most lenders provide same-day funding. If they cannot send the money to your bank account or debit card on the same day, you can expect it in one to three business days.
How to secure online loans in Texas
The application process for an installment loan online is straightforward.
- Find out your credit score
- Research lenders
- Prequalify before you apply
- Compare interest rates, fees, and terms
- Select the best lender and fill out an online application
- Receive your funds
Before you start the application process, you need to know your credit score. This will let you narrow your personal loan search down to lenders whose credit score requirements you meet.
Next, take the time to research potential lenders. Make sure they are licensed as a credit access business in Texas by the Office of Consumer Credit Commissioner and registered as a Credit Services Organization by the State of Texas. Look at reviews on the Better Business Bureau and Consumer Affairs to see past consumer experiences and how they’ve handled complaints.
Once you’ve found reputable financial institutions, prequalify before you apply. This extra step lets you see if you meet their basic criteria without impacting your credit score. Plus, you can compare offers to find the best one for you. Prequalifying does not guarantee you’ll be approved when you formally apply, but it does give you an idea of your chances.
Submit your online loan application. Most applications require the following:
- Full name
- Social security number (SSN)
- Address
- Income
- Employment history
- Documentation including a government-issued photo ID, pay stub, W-2, or tax return.
Once you submit your application, it goes through an underwriting process. The process determines if you’re eligible, and if so, will dictate your terms and amount. Once approved, you’ll get the funds in your checking account. Some lenders can send the money to a debit card, especially if you’re a repeat borrower. Many offer same-day funding, while others may take one to three business days.
Do you have bad credit but need to borrow money?
Repaying your online loan
Now that you’ve secured credit, it’s essential to pay the funds back as agreed. Most online installment loans come with fixed monthly payments. You can put payment reminders in your calendar or even set up autopay to never miss a due date. If you miss a payment, the lender may report to the credit bureaus (Equifax, Experian, and TransUnion) resulting in a negative mark on your credit report and a lower score.
Short-term payday advances are typically repaid in full on your next payday. This can be challenging if you’re not prepared. You may be able to get an extension or rollover, but these usually come with additional fees and interest. To avoid falling into a cycle of debt, it’s best to pay back the money as quickly as possible and stick to the original payment plan.
Frequently asked questions
1. Can I pay my creditor back early?
You can typically pay your creditor before the due date. Some will charge a prepayment penalty, but not all. Review the terms of your agreement before deciding to pay off your balance ahead of schedule.
2. What is the easiest way to borrow money?
Payday advances are very easy to get. They typically have minimal requirements and no credit check, making them accessible even to those with poor credit. Fill out an online application and you can receive instant funding in one business day.
3. Is it possible to get a payday advance without a credit check?
Yes, almost all payday advances do not require a credit check. Instead, you must provide a paystub to be approved.
4. How much can I borrow with personal loans online in Texas?
Common loan amounts range from as little as $100 to as much as $50,000, depending on your financial needs, the lender, and your creditworthiness. Borrowers with strong credit are likelier to qualify for larger amounts and better interest rates.
5. What are the rules for payday advances in Texas?
Texas law has few regulations for payday advances since lenders are considered a credit access business. There is no maximum financing fee, no maximum amount, and no restrictions on rolling them over or taking out multiple cash advances simultaneously. While the state has few regulations, over 45 Texas cities have passed stricter laws since 2011. These regulations include the following: amounts (including fees) cannot exceed 20% of the borrower’s gross monthly income and borrowers can only roll over a payday loan three times.
Bottom line
Texas residents have a wide range of options. Whether you’re looking for a short-term cash advance for a small amount or a larger sum with a longer repayment term, you’ll be able to find what you need.
No matter what you choose to do, it’s very important to understand the terms and fees. Payday advances can be an easy way to secure cash, but they can be expensive, especially if you can’t afford the payments. They are not designed to meet long-term financial needs. Always weigh your options and compare offers to find the most affordable one. By taking the time to research and choose wisely, you can find the best credit products in Texas for you.
