Here are some facts on borrowing money in the US. Roughly 80% of Americans have debt. Every year 12 million of them are taking out payday loans. Almost 2,5 million Texans and 5,5% of all American adults stated they have used a payday loan at least once. So, what’s the deal with Texas payday loans and personal loans?
In turbulent times it’s helpful to know where you can get cash in case of a pressing emergency. Family and friends might be the source of never-ending joy, but not always they can be a source of financial help. Where and how can one get a personal loan in Texas?
A personal loan is a part of a common lending practice used by banks and other financial organizations to supply cash to those who need it immediately. This loan can be either secured with collateral (such as valuable items or a car) or unsecured with no collateral needed. To apply for an unsecured loan you must be at least 18 years old citizen or permanent resident with a steady income and good credit history to show.
Multiple players on this market are regulated by federal banking rules and operate throughout the whole state. They have demands for a good credit score, so you might need to work it up a bit before applying.
There’s a possibility to apply for personal loans from major Texas banks online. It’s fast, easy and you better make sure you have a good (better yet, great) credit score. Online applications go through a hard credit check, so applying for it might affect your credit score. The amount available starts from $1000 and goes up to $100 000 with a possibility to use it for consolidation of other loans.
These short-term loans are helpful when you have those small emergencies such as unexpected hospital or car repair bills. The sums are much smaller than with personal loans, around $100 to $500, and a normal period of a loan is two weeks (till your next payday).
You can apply for a payday loan online and multiple lenders will send you the offers so you can make up your mind and pick one. Typically, together with a loan, you sign a consent form allowing the lender to get his money from your next paycheck deposit. The whole thing takes minutes and the loan amount is deposited to your checking account in a day tops.
This is also one of few valid loan options for those with bad credit scores. When it comes to personal loans, the banks usually demand a 580 score or higher just to apply. And, as mentioned before, their hard credit checks might make your credit score even worse.
Overall, it is a very convenient option and this convenience is paid in high fees. Payday loans might have up to 400% APR (annual percentage rate), but that only means you’ll pay $15 for a $100 that you took for two weeks.
An auto title loan is a type of secured personal loan where the borrower’s car is used as collateral. Auto title loan amounts are usually around $1000 and the fees are relatively high. The good part is, you can keep driving your car and only have to leave a spare key to the lender. The bad part is, if you are not keeping your part of the deal, the lender is authorized to take the car away from you even if it’s parked on private property. So be cautious of the terms and make sure you repay your loan on time.
Control and Legislation
There is a persistent controversy on whether any state authorities should regulate the market of personal loans. In some states went as far as banning payday loans or painting them black for high fees. It only made whoever really needs those loans go the extra mile to apply for one. The statistics look better, but the need for personal loans remains. Many lenders are operating under the Texas Finance Code and all the major cities like Huston, Dallas, and San Antonio, have codes of ordinances capping payday loan fees and regulating conditions.
We are living in a capitalistic society ruled by the laws of supply and demand. Personal loans and payday loans exist only because every year 12 million Americans need them. And, as with any other type of financial assistance, they have upsides and downsides you have to keep in mind while trying to find the best possible solution. With every agreement you sign in your lifetime the same rules apply. Read it carefully, check the numbers, consider penalties, and most importantly, follow it. It’s the sure way to avoid any extra charges while borrowing money in Texas or anywhere else.
A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s been in digital marketing since 2018. She loves reading books and spending time with her family.