A cash advance is often called a payday loan. Short-term cash advances are conferred to customers upon a fast, one-time repayment agreement. In other words, the borrower must pay back the debt as soon as their paycheck arrives, hence the name “payday loan.”
There are several types of cash advance and payday loans, including installment loans, title loans, and more. This can include anything from home and auto repairs to utility payments.
Payday loans and cash advances are best used in cases of emergency; they are not long-term financial solutions and should be used responsibly. Though it is not advisable to rely on payday loans, they can also help you cover overdue and current expenses.
Advantages of Taking out a Payday Loan in Houston
There are many benefits to payday loans. For one, they are a reliable source of fast cash for emergencies. Other advantages include:
- Approvals are often fast and secure. Payday lenders typically process incoming loan requests quicker than traditional systems. Online payday loan applications tend to receive exceptionally speedy service. Lenders strive to transfer the cash as fast as possible, often as soon as the next business day.
- Easy application process. Most lenders ask borrowers to fill out an online application.
- Some lenders will not dictate how you should spend the loan. In those instances, there are no restrictions on how and where the cash can be spent.
- The consumer’s credit score may not be the only qualifier. Although all lenders implement a credit check to ensure a safe transaction, other factors may be taken into high account before a decision is made. For instance, your income can be important for lenders to determine your loan repayment capability.
- If approved, consumers can avoid borrowing money from friends and family.
How to Get a Cash Advance and Payday Loan in Houston?
Residents of Houston, TX, can apply for a short-term cash advance through web platforms or at storefront lenders. The application is relatively quick, as long as the applicant presents all the essential information to process the request.
- Personal information, such as your name, address, phone number, and email address
- Bank account number
- Employer name or revenue source
- You must be 18 years or older to apply.
Cost and Regulations of Cash Advance and Payday Loans in Houston, TX
There is legislation that restricts some aspects of payday lending in Houston, Texas. Texas’s payday loan and cash advance laws differ from other states payday loans OH in the country. Texas does not impose a maximum loan amount, for instance. Rather, the maximum amount a lender will offer is at the lender’s discretion. The loan term should extend to a minimum of seven days, whereas the maximum can be determined by the lender.
Borrowers should be aware that Texas payday loans carry a high-interest rate compared to other states. Rollovers are not allowed for loans. Fees and other charges are also dependent on the loan amount offered.
Houston residents should note that payday loans can trap borrowers in a debt cycle that may be unsustainable since payday loans are not considered long-term financial solutions.
Licensed Houston lenders should disclose all loan terms, interest, fees, repayment period information, and other conditions in the loan agreement. Both parties should agree on a date for repayment. The repayment date is often the day of or after the borrower receives their paycheck.
To inquire about further information and questions regarding these short-term loans, visit the National Conference of State Legislature’s website. On their platform, customers and lenders may learn about the regulations implemented for licensing and laws in Houston, TX.
Installment Loans in Houston
An installment loan is considered another type of short-term loan, often used by candidates looking to acquire larger amounts of money. This provides a chance for the borrower to gain a more relaxed repayment schedule instead of paying the amount in one sum. In some instances, lenders can extend the repayment term to reach up to one year.
Requesting Title Loans in Houston
A title loan is also categorized as a form of short-term cash. The only difference when it comes to acquiring a title loan in Houston is that the borrower must present their vehicle as collateral. This can be anything from a car to a truck to a motorcycle. The vehicle’s title hard copy will be temporarily signed over to the lender.
A title loan’s request process is similar to that of a payday loan. General identification information will be necessary to complete the application, as well as information regarding the vehicle to be set as collateral.
If the car presented has a lien, the borrower must first repay the money owed to remove the lien before using the vehicle as collateral in a new loan.
Favorite Houston, TX Cash Advance and Payday Loan Companies
Houston, TX, boasts plenty of storefronts and online payday loan lenders. Advance America provides plenty of storefront locations scattered throughout Houston. They also host a reliable website with information regarding the loan products offered, along with a secure online request process.