Texas Payday Loans

Are Payday Loans Legal in Texas?

Yes, payday loans are legal in Texas, but the state doesn't limit how much lenders can charge in interest. Many payday lenders operate as Credit Access Businesses (CABs), which allows them to set very high fees and interest rates. Because of this, payday loans in Texas can be one of the most expensive ways to borrow money.

Who Can Get a Payday Loan in Texas?

To qualify for a payday loan in Texas you must meet the following requirements:

General Requirements

• Be at least 18 years old
• Be a resident of Texas
• Have a valid government-issued ID (such as a driver's license or passport)
• Provide proof of income (employment, benefits, or other regular income sources)
• Have an active checking account for direct deposit and repayments
• Provide a valid phone number and email address for communication

Since Texas has no strict regulations on payday loans, lenders may have their own additional requirements.

Can I Get a Loan with Bad Credit in Texas?

Yes, you can still get a  payday loan in Texas even if your credit is not great or you have no credit history at all. Lenders offering payday loans (or cash advances) in Texas care more about your income and ability to repay the loan than your credit score. If you've got a steady paycheck, benefits, or even gig work, you might qualify.

Payday loans are the go-to for a lot of folks because they don't require a traditional credit check. You'll just need proof you're making money, a valid ID, and a Texas address.

LendUp's Tip: Always check if a lender is licensed through the Texas Office of Consumer Credit Commissioner, and read the fine print. Bad credit loans can dig you deeper into debt if you're not careful.

How Fast Can I Get a Payday Loan in Texas?

Need cash right now? In Texas payday loans are known for their speed. If you apply online, you could get approved in minutes and see the money in your bank account the same day or by the next business day. With LendUp you get instant decisions - fill out the form, hit submit, and know immediately whether you qualify for a payday loan in Texas. 

If you'd rather walk into a storefront (there are plenty in cities like Houston, Dallas, or San Antonio) you might leave with cash in hand right after you apply, as long as you've got your ID, proof of income, and a bank account.

What if I Need a Loan for a Longer Period?

If you're facing a big expense like a car repair, medical bill, or home fix, and need more time to pay it off than a payday loan allows (usually 2-4 weeks), installment loans might be your answer. These loans let you borrow more money (up to $10k or more in Texas) and pay it back in smaller chunks over months or even years. Think of it like splitting a big bill into manageable monthly payments.

How Much Do Texas Payday Loans Cost?

Below are payday loan cost examples in Texas, based on typical rates:

Loan Amount	Fee	Total Repayment	APR	Duration
$100	$25	$125	652.68% APR	14 Days
$200	$50	$250	652.68% APR	14 Days
$300	$75	$375	652.68% APR	14 Days
$400	$100	$500	652.68% APR	14 Days
$500	$125	$625	652.68% APR	14 Days

Your actual rate will be outlined in your loan offer and loan agreement. The fees and terms vary by lender, that's why it's worth shopping around or using LendUp to connect with several lenders using just one application form.

Texas Payday Loan Regulations (Updated 02.2025)

Legal Status	Legal
Regulating Law	Texas Finance Code, Title 4, Chapter 393 (Credit Services Organizations Act)
Maximum Loan Amount	No limit (varies by lender)
Loan Term	7 to 180 days
APR (Interest Rate Cap)	No cap (often 400%-600% APR)
Fees Allowed	Varies by lender (often $20-$30 per $100 borrowed)
Rollovers	Allowed, but limited
Repayment Plan	Not required by law (but some lenders may offer)
License Requirement for Lenders	Yes, lenders must register as Credit Services Organizations (CSOs)
Collection Restrictions	No criminal charges for non-payment

Keep in mind, that payday loan rules in Texas vary by city. While Texas does not have strict statewide regulations on payday loans, several cities have passed local ordinances to limit predatory lending practices.

Payday Loan Rules in Austin, Dallas, San Antonio, Houston

• Loan amounts cannot exceed 20% of a borrower's monthly income
• Loan terms must allow affordable repayment schedules
• Installment payments limited to 4 payments maximum
• Each payment must reduce principal by 25%
• Limits on rollovers to prevent debt cycles

Why Choose LendUp for Texas Payday Loans?

LendUp makes getting a payday loan in Texas fast, convenient, and hassle-free by connecting you with a network of trusted lenders in one place. Instead of searching for lenders one by one, you can apply online and receive multiple loan options instantly, increasing your chances of approval.

Speed is our priority, applications take just a few minutes, and many borrowers get same-day approval. Once approved, funds can be deposited as soon as the next business day, helping you cover urgent expenses quickly.

The entire process is 100% online, so there's no need to visit a store, wait in long lines, or deal with complicated paperwork. Whether you need cash for an emergency or unexpected expense, LendUp provides a quick and reliable way to find the right payday loan in Texas.