Getting Personal Loans in Texas – What You Need to Know
The state of Texas may be known for barbecue and bluebonnets, but it’s also been a hub for substantial economic growth over the last several years. In fact, in the last year alone, there have been 350,000 new jobs added throughout the state.
That leaves many Texans with the financial bandwidth to consider taking out a loan for major expenses or life events. While there is currently no maximum fee required of payday lenders in Texas, the maximum loan amount is $1,800. The state also requires lenders to clearly outline the loan terms so you can understand the total cost and repayment responsibilities.
Where can I get a personal loan in Texas?
Personal loans in Texas can be found online and in person. When searching for loans online, make sure the lender is authorized to do business in Texas. If you have any doubts, check with the Office of Consumer Credit Commissioner (OCCC), which can let you know if they’re actually licensed.
For traditional personal loans in Texas, you can also try applying at a bank or credit union. Just know that the process and the funding time may not be as quick as you’d find with online lenders. But if you like asking questions in person, it’s a good option to consider.
What are different types of personal loans found in Texas?
An installment loan is the most common type of personal loan. It can either be secured (which requires collateral) or unsecured (which does not). As you make on-time payments, you’ll build a positive history on your credit report.
The uses for a personal installment loan are extremely broad and can include major expenditures like a home improvement project, life events such as a wedding, or expensive medical bills. You could even use a personal loan in Texas for debt consolidation to potentially help pay off high-interest balances.
Payday loans and auto title loans are also available in the state of Texas. These are often designed for individuals with bad credit. However, the repayment period can be short and may come with high fees. Plus, your payments do not show up on your credit report, so they don’t help rebuild your credit.
What should I watch out for when requesting a personal loan in Texas?
Even if a lender is licensed in Texas, make sure they do good business. Check for unresolved complaints with the OCCC to find out what kind of experiences other borrowers have had. It’s also important to understand the terms of your personal loan in Texas. Understand what happens if you can’t make a payment. Defaulting on an auto title loan, for example, could result in getting your car repossessed.
When researched well, however, many personal loans in Texas can help you get the financing you need to reach a major life goal.
Disclaimer: This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.