Short-term loans often come as payday-style lending arrangements in the Lone Star State—known for its wide-open spaces and independent spirit. While widely available, these products can be expensive due to limited state-level interest and fee caps, making it especially important to compare offers and understand the terms before proceeding.
Short-Term Personal Loan Rates and Fees in Texas
Texas does not impose strict interest rate caps on short-term loans. Instead, payday lenders operate as Credit Access Businesses (CABs), charging fees for arranging loans through third-party lenders.
APRs
There is no mandated statewide cap on APRs for short-term loans in Texas. Effective APRs can climb into triple digits. Always check the complete cost of the loan, including fees and interest, to ensure it’s manageable.
Loan Amounts
While there’s no strict maximum loan amount set by law, short-term loans in Texas typically range from around $100 to $1,800, depending on your income and the lender’s policies. Lenders often base how much you can borrow on a percentage of your monthly take-home pay.
Terms
Short-term loans in Texas are generally due in full on your next payday, usually within two to four weeks. Lenders may offer rollovers or refinance if you need more time to repay.
Fees
Lenders may charge fees instead of traditional interest. For example, a loan of a few hundred dollars could come with a fee ranging from $15 to $30 per $100 borrowed.
Short-Term Loan Example
Consider a $500 loan due in two weeks with a $75 fee:
- Loan Amount: $500
- Fee: $75
- Total Repayment: $575 at the end of 14 days
Lending Regulations in Texas
The Texas Office of Consumer Credit Commissioner (OCCC) oversees lending. While Texas law does not cap interest rates or fees on payday loans, it does require lenders to be licensed and adhere to disclosure rules. Some cities have passed local ordinances adding limited consumer protections. For official guidance, visit the Texas Office of Consumer Credit Commissioner.
| Regulation | Details |
|---|---|
| Maximum Loan Amount | There is no set statewide max, typically up to a few thousand dollars |
| Loan Terms | Usually due on the next payday (2-4 weeks) |
| APR | There is no state-imposed limit often digits |
| Fees | There are no strict caps, lenders set their fees |
| Rollovers | Allowed, increases fees and total cost |
Our Benefits
Your Resource, Not a Lender
We do not lend money. We connect Texas residents with lenders and let you compare offers. Find a loan that fits your circumstances before you commit.Convenient Application
You can request a short-term loan online from Houston to Dallas or San Antonio to Austin. The process is simple, saving you time.Wide Lender Network in Texas
We work with various lenders, allowing you to review multiple offers. Different rates, fees, and repayment options give you a better chance of finding a loan you can manage.Your Choice
We present options; you decide which to accept. Review the lender’s disclosures carefully and choose based on what’s right for you.Secure and Private
Your information remains protected. Our platform uses secure technology, safeguarding your personal and financial details.What Our Clients Say
Here are some testimonials from customers about their experiences with BuddyLoans:
How to Apply for a Short-Term Loan in Texas
If approved, funds may reach your bank account within the next business day.
Provide Your Info
Complete a brief online form with the amount you seek, your income details, and basic personal information.We Check Lender Offers
We review your request and match it with available lenders in our network.Review Terms and Receive Funds
Examine the lender’s terms. If you agree and qualify, funds can be directly deposited into your account.Loan Alternatives in Texas
Emergency Loans
Emergency loans deliver quick cash for urgent expenses, sometimes with more predictable costs than payday products.
Personal Loans
Personal loans offer more significant amounts and significantly longer terms. They may also offer better interest rates than short-term arrangements.
Installment Loans
Installment loans spread repayment over multiple scheduled installments, simplifying budgeting and reducing the burden of a lump-sum repayment.
Bad Credit Loans
Bad credit loans help borrowers with lower credit scores access funds. If repaid responsibly, they can improve their credit over time.
FAQ
Are Short-Term Loans Legal in Texas?
Yes. Texas allows payday and short-term lending. Lenders must be licensed, but they can charge high fees and interest. Borrowers should read the disclosures carefully.
What Are the Requirements for Applying for a Short-Term Loan in Texas?
Typical requirements include:
- At least 18 years old
- U.S. citizen or permanent Texas resident
- Steady income source
- Active checking account
What Are the Top 5 Cities for Short-Term Loans in Texas?
While loans are available online statewide, larger cities have more storefront lenders:
- Houston
- San Antonio
- Dallas
- Austin
- Fort Worth
Online lending expands access to every corner of the Lone Star State.
How Does Texas Compare to Other States?
Texas imposes fewer regulations on payday and short-term lending than many states. There are no strict APR caps, potentially leading to higher costs.
Is a Short-Term Loan Different from a Cash Advance?
Cash advances often refer to credit card withdrawals or employer-based paycheck advances. Short-term loans in Texas come from licensed lenders and can include fees that translate to higher effective APRs.
Can You Get Guaranteed Approval in Texas?
No legitimate lender guarantees approval without evaluating your financial information. Be cautious if an offer sounds too good to be true.