A personal loan is available in Texas. You can compare different options to find the best one. Online lenders often offer personal loans to residents of the United States.
Residents of Texas can apply online for personal loans
Texas residents are able to get online personal loans with an easy application. The following lenders can provide loans that can almost be used for any purpose. Before applying to a lender, be sure to meet the minimum credit requirements. A personal loan through GreenDayOnline can help you take control of your finances.
Upstart partners with banks in order to provide personal loans for nearly any purpose. Upstart’s model for lending considers education, work, and other variables. This allows for 27% more approvals and 16% less rates than traditional models.
- Credit score category Fair, bad
- To check rates, soft credit is pulled Yes
- Deposit time: It takes just one business day
- Origination fee:0% to 8%
- Late fee$15 or 5%
- Terms of repayment36 or 60% months
Texas companies offering personal loans
Texas has many lenders of personal loans that are regulated under federal banking laws. Try applying for an unsecured personal loans if you are in dire need.
Lenders will have different credit requirements. Some require higher credit scores. Lenders may place less emphasis on your credit score, if you can show that you have the earning ability to repay the loan.
It’s beneficial to work with local banks in your area. This will allow you to build a strong relationship and get to know other members. Local loan decision-makers are able to assess your ability repay the loan more effectively than if they make them at the corporate level via invisible loan underwriters and computers.
These five community banks and credit cooperatives serve local communities, and they offer unsecured personal loans to Texas residents.
Texas Trust Credit Union
Texas Trust offers a personal loan that can be used for any purpose. This includes debt consolidation.
Getting help – Texas Office of Consumer Credit Commissioner
The Office of Consumer Credit Commissioner was established by Texas in 1967 to supervise licensed agencies that make loans up to $2,500. This includes payday lenders and auto title lenders. If a Texas consumer has questions or concerns about loan transactions, the OCCC can help. Its primary purpose is to help consumers resolve complaints or disputes with lenders.
Texas OCCC assists Texas consumers with questions and resolutions regarding issues against regulated Texas companies. These include motor vehicle sales financing, secondary mortgage and home equity loans as well as pawn transactions. They oversee companies that offer auto title and payday loans, debt management, debt settlement providers, crafted precious metallic dealers, and registered creditors. They assist creditors with resolving disputes and complaints. The OCCC suggests that consumers who wish to file legal action contact the state attorney general.
Consumers who wish to file a complaint with the OCCC should first try to resolve it directly with their lender. Consumers can file a written complaint to the OCCC if the matter cannot be resolved or the lender refuses to resolve it. If the OCCC has jurisdiction, it will contact the responsible authority. If it doesn’t have jurisdiction, it will refer to the appropriate agency.
Consumers may file a complaint online with the OCCC, but you will almost always need additional documentation to support the complaint.
Alternatives to Avoid
Payday lenders are more popular than McDonald’s
To get an idea of how popular payday lending in Texas is, take a look at the fact that there are twice as many payday loan shops than there are McDonald’s restaurants. For every 100,000 people, there are only eight payday loan shops. There are four McDonald’s restaurants. According to the Fort Worth Star-Telegram, there were 55 payday loans shops along a five-mile stretch in Texas in 2015.
While this per capita number is not as high as those in other states like South Dakota (40 per 100,000), New Mexico (42/100,000), and Mississippi (33/100,000), it is important to remember that Texas is the fastest growing state in terms of population according to the U.S. Census Bureau.
Industry Growing Fast
It is expected that the number of payday lenders will continue to rise. Texas is home to the 2nd-most people with 28.3million residents. 8 percent of Texas’ population has used payday loans, compared to the national average of 5.5%. This is more than 2,000,000 customers. Texas is the seventh fastest-growing state. In 2016, Texas saw nearly 400,000 new residents, which means that payday lenders could serve 32,000 more potential customers.
Texas-Sized Loan Fees
The fees charged by payday lenders are the most significant in Texas. Payday lenders are not allowed to charge fees in Texas. According to the Center for Responsible Lending, Texas payday lenders took more than $1.2 million in interest and fees from the pockets of borrowers in 2016. This is more than twice the amount collected by California payday lenders, despite them outnumbering Texas payday lenders by nearly 800. Nearly 30 percent of all fees collected by payday lenders in America are paid by Texas payday lenders.
According to the Center for Public Policy Priorities, Texas’ average payday loan amount is $470. On average, $100 borrowed costs $22.85, which is $107 for an origination fee. The total amount of repayment due on the borrower’s next payday is $650 if there are additional third-party interest costs. The average Texas payday loan rate is 439 percent.
A Nebraska borrower would have to pay $75 in fees while a Florida borrower would need to pay $55. Although many Texas cities have ordinances that limit the number of refinances allowed to be done, most cities do not allow more than three or four. This is the core of the debt trap most payday loan borrowers are in.
Texas is also a leader in auto title loans
Texas is also a big market for auto title loans. This can make it even more difficult for borrowers. Auto title loans are where the borrower must place their vehicle as collateral. This means that they have to turn their car and spare key over the lender until the loan is repaid.
Texas’ average auto title loan size is $1,003. Single-payment loans are charged an average of $22.58 per $100 borrowed and $1,118 for installment loans which average $91.79 per 100 borrowed.
Borrowers are more likely to default on their auto title loan payments. Texas law permits lenders to repossess vehicles when borrowers are late by less than one week. Without advance notice or a court order, the repossession company can take over private property.
Auto title lenders prefer not to repossess vehicles, as it can be extremely expensive. They must pay for towing and have the vehicle rekeyed in order to sell it at auction. The lender can keep any excess sales. If the vehicle sells for more than the loan amount the lender will retain the surplus.
According to the Center for Responsible Lending, the real tragedy with auto title loans is that borrowers can refinance their loans an average of eight times. This can increase the interest and fees due on loans repaid over an eight-month period.
Texas is a large unregulated market
Texas is among a decreasing number of states that do not restrict payday lending. Fees, interest rates and loan amounts are not subject to any restrictions. Refinances can be made up to five times. Income is not a factor. Texas is a wild west for auto title and payday lenders, with almost no regulation. Texas’s Constitution limits the maximum interest rates that lenders can charge at 10%. Payday and auto title lenders can get around this law because they are credit access businesses (CABs) that are permitted to charge fees to broker loans between borrowers.
Although the Texas legislature tried to pass laws to control the $6 billion payday industry and the auto title industry on several occasions, it failed each time. But, more cities and towns are creating local ordinances.
Local ordinances that cover approximately 10 million Texans limit the size of loans to 20 percent of a borrower’s monthly income, and for auto title loans, 70 per cent of the car’s retail value. Lenders are required to verify the income of borrowers and limit refinances. These ordinances do not apply to approximately two-thirds the state’s residents.
Texas’ legislature passed a law that required payday and auto title lenders operating as CABs to have Texas licenses and regulations. Consumers can check with the state to verify that the lender is licensed.
Another law requires lenders provide clearer disclosures about the true cost of loans. Lenders are not allowed to post cryptic fees calculations or APRs that do not reflect the total loan cost. Lenders must also inform customers about the potential for loan costs to skyrocket if the loan is not paid on time. The lender must inform the borrower about how their loan costs compare to other loan options.
Title loan laws in Texas have important limitations on borrowers in one area: term limits. Texas has strict loan terms limits. Credit service contracts cannot exceed 180 days. Borrowers are subject to these limitations. A 30-day initial title loan may only be renewed up to five times before the loan is due full.
How to tell if a lender is legitimate
Non-depository lenders that charge more than 10% interest must be licensed by the OCCC. Practically every payday loan shop in Texas must be licensed by the OCCC. This criteria deems the lender legitimate.
Remember that the lender is not limited to any amount or loan rates, except in certain localities. If you deal with a legitimate lender, they can legally deceive you with a 400% APR.
To find out if there are any unresolved complaints against a lender, you can contact the OCCC. The Better Business Bureau can also be consulted to determine how the rate is and what complaints it has. To see if any legal proceedings have been taken, you should also contact the state attorney general.