Are Payday Loans Legal in Texas

Short answer: Yes! Payday loans are legal in Texas, and we’re happy to connect you with a network of Texas payday lenders. To ensure you’re dealing with a legitimate Texas payday lender, we recommend you visit this search portal¬†provided by the Texas Office of Consumer Credit Commissioner to search for the name of the company you’re dealing with. Texas lending law limits interest to below 10%, but Texas payday lenders are allowed to charge an unlimited amount of fees for arranging the loan. This generally results in actual annualized interest rate around 500%.

How are those interest rates legal!?

This sounds like a lot on paper, but you must remember that payday loans are intended to be a short-term borrowing solution only. Interest rates are high because these loans are usually taken out by consumers who don’t have options to access credit elsewhere. Most payday lenders experience around a 25% default rate on their lending activities. This means that for every four loans, one of the borrowers never pays back. Therefore, payday lenders must charge extremely high interest rates in order to cover this level of risk.

What will you need to take out a Texas payday loan?

  1. A checking account that lenders are authorized to send and withdraw funds from (in order to pay back your loan)
  2. A steady source of income from a job, government benefits, or self-employment
  3. A home phone or cell phone number
  4. 18 years old with a valid social security number

If you meet these basic requirements, it’s likely we can help you find a lender that is interested in lending to you. Our network of lenders is comprehensive. In about five minutes we can have you connected with a Texas payday lender. If you’re interest

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