Payday Loans In Texas
Texas Payday loans are a good way to get money in case there is an emergency. Whether you are short on cash to finance something like a hospital bill or a wedding event, you can get this quick loan to come over your financial inconvenience.
No matter what you need fast cash for, a payday loan will help you in covering your finances and pay for whatever it is. Usually, you will receive the funds within 24 working hours, which makes this facility helpful. But, it is important to keep in mind that you will be required to pay your lender back in a span of few weeks.
Make sure that before you apply for a payday loan, you are confident that you will be able to pay back the lender or it might cause unpleasant situations for you in the future. If you have a steady job or a financial backup which might pitch in to help you out when you have to pay back, it is safe to borrow a payday loan.
How much amount can Texas payday loans offer?
As per the Texas OCCC (Office of Consumer Credit Commissioner) website, which regulates financial services in the state. Texas payday loans do not have any specified limit on the amount you can borrow at storefronts or online. However, due to the nature of this loan, which could just be used for short term, Credit access businesses (CAB) may set up their policy to cap the maximum amount they can offer.
Usually, Payday loans range between $100 to $1000, but in the case of Texas, this amount may range up to $2000 depending on the provider’s internal policies. But, in most cases, you may not be offered more than 20% to 30% of your gross monthly income.
What is a Credit Services Organization/Credit Access Business in Texas?
Credit Services Organizations (CSO): – CSOs have been functional since 2005 and registered with the secretary of state for conducting business in Texas. Under section 393 of the finance code, CSOs are authorized to assist consumers in improving their credit history or rating in exchange for a fee, and in obtaining an extension of credit through a third-party lender. CSOs acts as a broker to arrange a loan from an individual 3rd party lender for a fee.
Credit Access Business (CAB): – CAB is the new version of CSO, effective January 1, 2012, businesses registered as Credit Services Organizations (CSO) under secretary of state, were transitioned by the Texas OCCC (Office of Consumer Credit Commissioner) as Credit Access Business.
The new laws and regulations which kicked in, need CABs to acquire a license to operate in the payday loan space. However the business model continues to be the same, they will act as intermediates/broker between the borrower and a third party lender. The CAB will service the loan from the day it was obtained until the time it was paid back and will charge a fee for their assistance.
Eligibility requirements for payday loans in Texas.
- Active bank account open for 30 days or more.
- A verifiable steady source of income from an existing job or other sources.
- At least 18 years of age or above.
- A valid social security number, email address, and a contactable telephone number.
- If employed, minimum $1000 net income per month, on social security or retired minimum $800 per month.
Example Fees Chart for Texas Payday Loans.
|Loan Amount||Lender Interest (10% per annum)||CAB Fee||Total Amount Due||APR (14 days) Loan Term|