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Texas Payday Loans Online
In the state of Texas, payday loans are considered legal. Borrowers in Texas are not limited in the amount of money they can borrow, and there is also no set maximum financing fee (APR can be more than 400%). The charges and additional costs that apply to the loan differ depending on the loan amount and lender.
Texas has two types of payday loans: single installment loans (due in two weeks or one month) and multiple installment loans (due within six months).
Regulations and Ordinances
Regulations apply to both online and offline lenders. Check these features with your payday loan provider before finalizing the deal:
- All lenders are required to be licensed.
- Before the loan paperwork is signed, lenders must provide all the essential information (terms, interest, fees, and payback time).
The following are the key aspects of the city ordinance:
- Online payday loan lenders (credit access firms) must get a local license.
- Lenders must retain a record of each loan transaction.
- The total loan amount (including fees) cannot exceed 20% of the client’s gross monthly income.
- No more than four payments and three rollovers.
- Repayment of at least 25% of the initial loan amount.
- $500 fine for violating the regulations.
Getting an online payday loan from a state-licensed direct lender in Texas is the ideal option for a wise consumer.
Loan Amount in Texas
The maximum amount that a person can borrow from a Texas online payday loan provider is not limited by law.
Fees
There is no set maximum financing cost in Texas, but state officials say it is rather high — 400% APR.
Why Is It Critical to Opt for a Texas-Licensed Direct Lender?
The best option for an online payday loan in Texas is a state-licensed direct lender.
A “transfer of cash from the ultimate lender to the ultimate borrower” is the clearest definition of direct lending. Here is how it goes: the client fills out and submits a payday loan application on the lender’s website, who then approves and funds the loan within one business day. When the borrower’s loan is due, they log into their account and make the repayments without any intermediaries.
What advantages does this imply for the borrower? One of the biggest perks is that you are dealing with only one firm. From application to repayment, state-licensed direct lenders handle all the transactions. As a result, all of the information you submit on your application is kept in one database.
Look for indications on the payday loan companies’ websites to help you discover state-licensed direct lenders in Texas. Another method to spot these lenders is if their website includes a phone number to reach out to the customer care department. This way, you can always contact and ask for further information about the types of services they offer.