Payday loans in Houston, Texas

Information about Houston, Texas

In the state of Texas (TX, 48), the law does not specify payday loan amounts. As a result, locals from Houston can borrow as much as lenders approve them for. The average short-term loan amount is around $800. Most people take a cash advance to solve short-term financial emergencies. The state regulations are more tolerant compared to other states.

Table Contents

1. Legal Status of Payday Loans in Houston, Texas
2. Payday Loans Near Me in Other Cities in Texas
3. ZIP Codes
4. How Do Payday Loans Work in Houston, Texas?
5. Payday Loan Requirements in Houston, Texas
6. Ways to Use Payday Loans in Houston, Texas
7. Payday Loan Alternative in Houston, Texas
8. Top 10 Lenders in Houston, Texas
9. FAQs

Legal Status of Payday Loans in Houston, TX

Online payday loans in Texas are legal, and operate under 5 Tex. Fin. Code §§ 393 et seq.1, 4 Tex. Fin. Code §§ 342.004.2. The loan amount should typically not be more than 20% of the borrower’s monthly gross income. A maximum of three rollovers are admitted, and the recommended number of installments is four. The regulations are subject to change on both state and city levels.

The average fee is around $23 for every $100 that a borrower takes. The APR depends on the loan amount and time frame. The APR can legally be more than 400%, the state average being 410%. A cash advance of $300 for 14 days, with a $20 fee for each $100 borrowed, will cost $360 at an APR of 521.43%.

How Do Online Payday Loans Work in Houston, Texas?

Borrowers find payday loans easy and effective. Applying in-store takes about 15 minutes and has the same basic requirements as an online application. Both types of requests follow the same principles. The loan provider must own a valid license. All Texas lenders have to clearly state the loan conditions before asking you to sign the agreement. The main difference is the format you submit your documents: stores accept paper, while online applications require digital versions. If you own a smartphone, it will be easy for you to scan your documents and make a loan request online.

Although Texas legislation doesn’t stipulate a fixed value as a maximum loan amount, lenders in most cities cannot provide loans that exceed 20% off the borrower’s monthly gross income. Most companies set a limit of $1,000 on short-term loans to stay on the safe side. Installment loans (with a repayment term of up to six months) operate with amounts up to $5,000, provided that they follow the 20% income rule.

Texas residents enjoy looser regulations, which means that a borrower can get up to 3 rollovers (more in certain cities), or they can apply for another loan without a cooling-off period.

According to §83.604 in Texas Financial Code, lenders must return all fees that are not earned if a borrower pays off a loan earlier. That way, borrowers are more motivated to repay their loans on time.

A payday loan can help solve financial emergencies, pay the bills, fix your car or fulfill other financial obligations. One of the main benefits of a cash advance is that it is faster to get one, and the requirements are simple. These loans were created for emergencies, and the industry keeps growing due to popular demand.

Payday Loans Requirements in Texas

To qualify for a loan on the territory of Texas, a borrower has to meet a set of basic requirements:

• Age: 18 and older;
• Steady income: proof of recurring income from a job or other verifiable sources;
• ID: the borrower must be a citizen or a permanent resident in Texas;
• Bank account: an applicant needs to be the owner of a valid bank account;

Even if a borrower is not employed when submitting a loan application, they could still qualify. The requirement is to have a recurring monthly income, either from a financial aid program or from a supplier. The category covers people with disabilities, single parents who get alimony, retired people, and veterans.

The Military Lending Act regulates all loans towards active members of the Army, Marine Corps, Navy, Air Force, Coast Guard, as well as their dependents. The main restriction is for most loans to cap at 36%. That limits their access to several loans, including short-term cash advances.

Ways to Use Payday Loans in Houston, Texas

A payday loan is helpful when all other options have been exhausted or when you need money urgently. With a cash advance, customers have the possibility to choose smaller amounts than what larger financial institutions typically allow. If you only need $200 until the end of the month, this one service can grant you just that. In other words, a payday loan is a quick solution to solve a last-minute problem.

If your car broke down and you rely on it to commute to work, but you’re out of cash, you could get a payday loan in one business day, fix your car, and carry on. If a pipe blew up in the bathroom and you cannot afford to pay for the repair service, but you need it fixed urgently, a payday lender will reply fast to your application. In Houston, the elderly take payday loans to buy medicine or pay for groceries. You can use a cash advance to pay for your child’s tuition, a medical bill, or utilities. In short, you can use a payday loan for anything that you cannot postpone until your next paycheck.

Payday Loans Alternatives in Houston, Texas

Residents of Houston, TX, have the option of choosing from different organizations and services when considering a loan.

Banks. If you know you have a good credit history and need a larger amount of money, apply for a bank loan. They will look into your details and either grant you the loan you wanted or propose an alternative. Secured loans are normally easier to obtain.

Credit unions. Although borrowing from a credit union requires active membership, the organization will most likely offer you better rates than a traditional bank.