Loans in Texas (TX)

Payday Loans and Installment Loans in Texas (TX)

Everyone deals with financial difficulty, every now and then. Some expenses are sprung upon us, and we hardly know how to cope with them. Or, perhaps you want to make a significant purchase and you don’t have the finances for that. Essentially, since each loan has been created for a specific purpose, you might have some trouble finding the right financing for your needs. This is what we’re here for: to shed some light on the subject. And today we’ll discuss best payday loans and installment loans in Texas.

Introducing Online Payday Loans and Installment Loans in TX

First and foremost, it’s worth mentioning that Texas is one of the states in the US that doesn’t restrict the limit of money you can borrow. However, it does regulate the repayment period. Hence, to be more specific, for payday loans worth $100 or less, you have to repay the loan in up to six months.

As for payday loans exceeding that limit, there is a maximum of $20 per month to make the repayments.

Another regulation imposed by the state is that a payday loan cannot account for more than 20 percent of the borrower’s monthly income. Aside from that, in the case of personal loans, the number of payments is limited to four, each installment covering 25 percent of the principal amount.

When Should You Choose a Payday Loan?

A payday loan, as its name already points, is the type of financing you can get really fast. Therefore, it is best suited for emergency situations, in which you find yourself in need of cash ASAP.

There are few requirements needed for qualifying for a payday loan. You should have a stable income, an active bank account, and an ID. It’s as simple as this. Nonetheless, note that you should meet specific income requirements. And, as mentioned above, you cannot borrow more than 20 percent of the amount of your monthly income. So, make sure you factor this in beforehand.

In short, a bad credit loan is a sensible option for emergencies, as it shouldn’t be turned into a habit.

When Should You Choose an Installment Loan?

Installment loans, on the other hand, allow you to make the repayments in installments. Such a loan can be taken for numerous purposes. Nonetheless, your credit history and rating will mostly determine the interest rate you’ll end up paying. Aside from that, in Texas, installment loans cannot be refinanced or renewed, so make sure you can afford to make the repayments before making a financial commitment in this direction.

So, if you need a larger sum of money, but it isn’t necessarily an emergency, getting an installment loan could make sense for you.

To sum up, after reading our article about Texas payday loans and installment loans, it’s up to you to select the type of financing that fully addresses your needs. Most importantly, choose your direct lender carefully, as there are many scammers in the marketplace and you don’t want to be their victim, do you?