There is no maximum number of payday loans a borrower can have in Texas. However, $500 is often the highest outstanding balance a borrower can have.
Most payday loans have a mandatory two-week repayment length, which can make the repayment process a hassle. But payday loans in Texas typically have more extended repayment periods than in other states. Many Texas payday loans have a 30-day repayment length, but you can get a payday loan with a six-month repayment length!
Some states impose caps on payday loan interest rates, but Texas does not. Lenders can charge any interest rate they want. For this reason, many lenders have excessively high-interest rates. The average APR for a $100 payday loan is 410%. If you are looking to get a payday loan, take the time to compare interest rates from various lenders.
In addition to interest charges, you will have to pay a finance charge. Finance charges for a $100 loan can be upwards of $20! That equates to a dollar for every five you borrow. Of course, rates vary by lender, so ask about finance charges to find the best payday loan offer.
If you can’t afford to repay the payday loan on time due to high fees, the loan will not roll over. Instead, the payday loan will convert to a declining balance installment note, and you will have to pay a collection fee. Lenders typically charge a late fee that is 5% of payment or $7.50, depending on which amount is higher. The financial institution is legally prohibited from pursuing criminal action unless there is proof of fraud or forgery.
Payday loans are convenient because you can get fast cash in as little as one business day. Many payday lenders also allow mobile applications so you can complete the approval process on your smartphone. But before you apply for financial relief, explore other loan options.
Personal loans are one loan option for borrowers who need money quickly to avoid late payments or cover the cost of a necessary expense. You can potentially get more money through a personal loan and decent interest rates that don’t burden your wallet. Weigh all your options and compare loan offers before applying with a lender.