How to Take a Payday Loan in Houston: a Guide to Short-Term Lending
If you got into a difficult situation and need money as soon as possible, a payday loan might be the solution. With the help of it, anyone can get a temporary cash advance within several days after applying. Bad credit loans in Houston can be good for people who cannot borrow money from standard banks. Despite high interests and charges, they can help you solve short-term money problems. Many companies offer payday loans in Houston, Texas that can be used for any type of emergency cash shortages.
Due to the risky nature of payday cash loans, the vast majority of traditional financial institutions in Houston, TX do not offer this kind of loans. Fortunately, you can turn to one of the many independent lenders. Thanks to them, anyone can easily borrow some cash until payday. On the negative side, there are many predatory lenders trying to take advantage of people in need. You have to be very careful when choosing a loan company. On this page, we are going to help you find a reliable lender in Houston and take a payday loan on good terms.
The crucial factors about payday loans in Houston you should know about
Before you even consider taking a payday loan in Houston, Texas, make sure that this is the only option available for you. Payday loans are associated with high risks because of enormous fees and rates that can lead you to an endless cycle of debt. Consider alternatives (such as payment extensions and government agencies) before choosing a payday loan in Houston.
Just like in any other state, every payday loan is very risky in Texas. If you are sure that you need to take it, do note that you has to meet the following requirements:
- Be an adult (at least 18 years old);
- Be a permanent resident (citizen) of the US;
- Provide income proof;
- Provide a legit ID.
Moreover, some Houston payday loan lenders might ask for your bank account and some of the other personal information. If you do not want your application to get declined, make sure to provide all the necessary documentation. Keep in mind that any trustworthy financial company will check your creditworthiness when reviewing your request. Do not apply for a payday loan in Houston if you do not meet the requirements: this would only worsen your credit score.
Thanks to the huge number of lenders in Texas, anyone should be able to take a loan even with a bad credit history. Usually, independent financial organizations in this state offer up to 1000 dollars for the short term (but the overall sum cannot exceed 20% of the borrower’s monthly income). Whatever amount you want to borrow, you should always return it in due time. It is very serious! Otherwise, you will get into serious problems due to high interest rates and charges.
What are the general terms and conditions for Houston’s payday loans?
Unfortunately, there are no strong payday loan regulations in Houston, which is really bad for borrowers. There are no limits for annual percentage rates and charges, so they are higher in comparison to most of the other states. On average, APR for payday loans in Houston is around 500%. As to the maximum amount, it is limited to 20% of the gross monthly income of a borrower.
Obviously, there are loan companies that offer adequate interest rates, but most of them have overwhelmingly high APR and fees. Potentially, the finance charge is unlimited, which makes taking payday loans in Houston extremely dangerous. Thoroughly read the loan’s contract before signing it! There are many predatory lenders on the market, so you have to be very cautious.
Research your options before making a final decision. This is the only possible way to find a trustworthy loan company in Houston, TX that will not try to fraud you. Explore user reviews and visit the official website of a lender before applying for a loan. Make sure that the company is accredited by BBB and has a postal address listed on the website. If a lender has no telephone neither postal address, we highly recommend you to find a different one.
Are payday loans legal in Houston, Texas?
Of course! Payday loans in all states of America are legal, and Texas is not an exception. However, legislation continues to look for ways to regulate loan companies. Sadly, predatory lenders use a loophole and register as Credit Services Organizations. This allows them to charge hilariously high numbers in interest and fees, making borrowers to lose tons of money. According to statistics, nearly 75% of Houston residents (that currently have payday loans out) are trapped in a loan renewal cycle.
Unfortunately, the government cannot handle this payday loan in the future. The already resource is why Houston taking this fight into their own hands. In 2014, the city created local ordinances for payday loans by requiring every potential borrower to prove an ability to repay the debt in due time. Therefore, people are obligated to demonstrate their monthly income to loan companies before taking out a payday loan.
How much money can you borrow from payday loan companies in Houston?
As was already stated before, the maximum loan amount depends on the salary of a borrower. You cannot borrow more than 20% of your monthly income with a payday loan in Houston, Texas. Nevertheless, most lenders do not conduct a hard credit inquiry, which makes payday loans affordable to anyone regardless of their credit score. Legit financial organizations conduct a soft check on borrowers to make sure that they can afford the loan. Additionally, each company may have its own requirements that depend entirely on the lender.
Do not let the high accessibility of payday loans in Houston trick you. You should be extremely careful when dealing with this type of consumer credit. Remember that a small payday loan can easily turn into huge debt, making your financial difficulties even harder. The APR rate consists of up to 700% and even more, which is terrible! Do note that legitimate loan companies would never issue several payday loans at once, so the maximum amount is strictly capped by 20% of your monthly income.
What are the minimum requirements to be eligible for Houston payday loans?
Loan companies from Houston have different interest rates and terms, but the basic requirements for short-term loans are nearly identical most of the time. If you want to take some cash from an independent loan company in Texas, you need to be a resident (a citizen) of the United States and be an adult (at least 18 years old). Here is the information you will need to provide when applying for a payday loan in Houston, TX:
- Valid surname and name;
- Valid banking details;
- The correct date of birth;
- Legitimate proof of income;
- Telephone number;
- Valid ID and SSN.
In some cases, borrowers have to provide other personal details such as their employer’s contact information. However, it will not be necessary most of the time since Houston, TX payday loans amounts are usually low while risks for lending companies themselves are close to zero.
What should you look for before applying for Houston loans?
If you want to borrow money on decent terms, be ready to go thoroughly read the entire contract. This huge document usually tells everything you need to know about your loan. Here are some of the most important facts you should remember:
- Never take extra payday loans. If you fail to pay back the loan you agreed upon, do not agree to take additional loans. According to the Consumer Financial Protection Bureau (CFPB), four-in-five people borrow again from their lenders within a month, and most borrow at least 10 loans in a row. This is why refinancing is considered illegal in many states.
- Unaffordable interest rates. At first, you might think that a loan company offers reasonable APR. For instance, some people do not mind a $30 fee on a $100 payday loan. In fact, APR, in this case, is way over 750%. These astronomical rates keep people in debt cycles for many years.
- High charges. Payday short-term lenders often set up automatic payments through the borrowers’ banks. If an attempt by an online payday lender to withdraw payment results in overdraft, borrowers face both steep bank fees.
Frequently Asked Questions about payday loans in Houston
Can I take a bad credit payday loan in Houston, TX?
Sure. You do not need to have a good credit history to take a payday loan in most states of the US, including Texas. The vast majority of independent lenders do not even care about it. However, you will need to provide a legit proof of income to let the lender rate your creditworthiness.
What do I need to provide when applying for a loan in Houston?
Loan companies will only need your personal information, banking details, and proof of income. You will not need to provide any other information or collateral for a payday loan in Houston with no credit check.
Can I take a Houston payday loan without a bank account?
Yes, the majority of short-term lenders do not care whether you have a bank account. Alongside with transferring funds to bank accounts or credit cards, they allow borrowers to get cash in person. Additionally, some loan companies in Texas can transfer funds directly on a prepaid debit card.
What is the maximum sum I can get with a payday loan in Houston, TX?
The maximum amount you can borrow from a lender using payday loans in Houston, TX cannot exceed 20% of your gross monthly income. Therefore, the maximum amount in this state depends on your earnings.
What is the maximum APR for payday loans in Houston?
Unfortunately, the annual percentage rate for payday loans in Houston is unlimited. Usually, it ranges from 450% to 700%. You need to be extremely careful when borrowing money! Make sure that the interest rate is not overly high.
Can I improve my credit history with Houston, TX payday loans?
Of course! Provided that you will repay your payday loan in time, you can improve your credit score. However, not every loan company reports to credit bureaus. Find out whether your lender will report your payment before taking a loan.
How fast will I get my money with a payday loan in Houston?
It depends entirely on your lender. In general, the funding period ranges from 12 hours to three days. You can speed up the process by applying for a loan in person. Most loan centers in Houston give out money to applicants within an hour.
Final words on payday loans in Houston, TX
Sometimes payday loans in Texas are your only way to get some cash for unexpected expenses. Unlike installment loans, they do not require collateral and you can take them regardless of your credit score. Unfortunately, short-term loans are associated with high risks in Houston, TX due to the unlimited APR in this state. If you think that taking a payday loan is your only option, select a trustworthy lender using this guide and make sure to repay it in due time. This is the only way to minimize losses and prevent debt cycles. Follow our advice and you will not have any problems!