Texas Loans – Laws Regulating the Most Popular Loan Types

If you are a Texas resident and need fast money, online loans will be the best option in this case.  Non-bank organizations provide an opportunity to apply for an online loan even with a bad credit history and without unnecessary formalities.  Depending on the required amount and repayment period, there are several main types of loans, which you will learn about from this article.  It is worth noting that every type of loan is completely legal in Texas, and some criteria are regulated by the government.

Online loan types for Texas residents

The types of the most popular loans:

  • Payday loans.  This type of loans is the most popular among clients of non-bank companies.  They are considered short-term and are issued for the shortest possible time.  So, thanks to a payday loan in Texas, you can get from 100 to 1000 dollars for a period of 14 days to 180 days.  Texas allows payday loans with a maximum APR of 410% and additional fees of 10% of the loan.  The NSF fee may reach up to 30$ and default penalties of 5% collection fee. These loans are ideal for paying small bills or unexpected expenses.
  • Installment loans.  These loans are issued for a larger amount from 1000$ to 5000$, which is why they are paid off not in one payment, but in the form of installments every month.  Installments can be paid off over a period of 90 days to 36 months.  The minimum APR in this case may be 6.63 percent.  Such loans can be used to pay larger bills, travel or repairs.
  • Personal loans.  Such loans are essentially no different from installment loans, but are issued for a larger amount and for a longer period.  The amount of personal loans ranges from 1,000$ to 35,000$ for a period of 90 days to 60 months.  In this case, the minimum APR would be 4.99 percent.  Such loans are suitable for large purchases and large bills.
  • Car title loans. These loans are issued to car owners on the condition that the car acts as collateral for the duration of the loan.  In Texas, car title loans are considered short-term loans, as they are issued for a maximum period of 180 days.  At the same time, you can get from 100 to 50,000 dollars, since the loan amount depends only on the value of your car, its model and condition.  The age of the car must not be more than 12 years for the lender to issue this type of loan.  The maximum APR in the case of car title loans is 120%.

In non-banking institutions, an online loan is granted less restrictively and with a much greater degree of trust. Payday loans are the most popular, where the loan period is about 2 months. However, there are so many different offers that it is worth using a comparison engine that provides the parameters of a given loan, making it easier to choose the one that satisfies us.

There are many different types of loans offered by lenders in Texas:

  • online loan with ID card only  – the only document required is a valid identity document, which we enter into the system. An offer for young people who have not yet achieved creditworthiness or for people for whom the most convenient way is verification by means of an ID card.
  • online loan without income certificate – as the name suggests, we declare the amount of our income, i.e. we do not present any document from the employer confirming our income.
  • online loans from 18 years of age – many non-banking institutions offer their services to customers who are 21 years old, but loans that can be used by very young people are becoming more and more popular, their characteristics match the loan criteria.
  • online loan for those in debt – an offer dedicated to all people with financial difficulties. Special terms of cooperation that allow you to repair your home budget and pay off outstanding debts.
  • online loan in installments – as in the case of installment purchases, non-bank institutions offer loans divided into equal monthly installments. Convenience for anyone who would like to plan their expenses in advance.
  • online loan with a guarantor – granted to people usually with a very bad financial situation. The guarantor is the person who takes responsibility in the event of insolvency of the client who is bound by the contract with the lender.
  • free online loan – the best option for each new client of a given institution, the APR is 0% in this case, i.e. we give back exactly the same amount for which we have borrowed.
  • weekend loan – special offer in case of unexpected situations. At the moment, only some of the institutions have the option to take out a loan 24 hours a day, 7 days a week, but in emergency situations such financial assistance is irreplaceable.

Loans without credit check – for whom?

Can I get a loan without credit check and with bad credit? Yes this is possible. Some non-bank companies do not check your debt in debtors’ databases. Most often it is done by banks to minimize the risk of granting a loan to an indebted person. And non-bank companies can afford to accept a client with bad credit history. A loan without credit check can be a temporary financial support for many people who have had problems with paying off their liabilities in the past, and even for those who still have not got rid of their burdensome debts and are looking for financial support.

If we have a negative credit history, it means that many loan companies call us debtors. Often, the lack of timely payment may not be our fault. There are many situations over which you have no influence, such as losing a job, where we have nothing to pay off. For the company with which we have a loan, what is happening with us did not really matter. We have signed a loan agreement so we have to pay back what we borrowed on time. Otherwise, the company has the right to charge the so-called interest for late repayments, which increase our debt.

A loan without credit check is for people who, through various situations, fell into a spiral of debt that led them to a bad financial situation. The repayment date was passing, the interest was growing, so the debts were increasing. We rarely manage to get out of this problem because we are not aware that there are many institutions that can help us. However, it is worth protecting yourself against such an eventuality, because we never know what will happen to us.

The negative history in the databases is of the greatest importance for people who are interested in a loan without credit check. All you need to do is complete a short application and the initial decision is received immediately. Anyone who is indebted by banks can apply, regardless of whether they need money for a home renovation or a new car.

A loan without credit check is for adults who have an identity document. Some lenders provide an upper age limit in the terms of the loan, but there are so many financial products that everyone will find the best solution for themselves. Even with a very large debt, we do not lose the chance to get a loan with bad credit.

Payday loan or installment loan?

For some, the fact that payday loans are paid as they are taken – quickly and in full – is a huge plus and something that distinguishes them from banking services. However, the vast majority of people cannot afford to take out a loan for several thousand dollars to pay off the whole with interest in the next month. That is why we also choose installment loans. They are also granted immediately, but their repayment is spread over a longer period of time. This can be a more comfortable solution, but remember – a longer repayment period means a higher total cost of the loan. We should also remember that even the cheapest non-bank installment loan will be more expensive than the most expensive bank loan available on the market.

In case of problems with paying off loans in Texas

If we avoid paying off loans, the loan company may sell our debt to a debt collection company. In the event of ineffectiveness of the debt collector’s actions, the case is ultimately brought to court, which we should avoid at all costs. In the course of court proceedings, the bailiff may seize our bank accounts, as well as confiscate valuable items (household appliances or electronics – telephone, computer, TV), a car and even real estate. If we have taken out a loan, do not avoid contact with a loan company and try to conclude a settlement with it.