Getting a loan these days is not an easy process for many residents in the state of Texas. With shrinking wages, unemployment, and damaged credit, people are beginning to turn to unconventional ways to pay their monthly bills. Sometimes, our paydays do not coincide with our bill due dates. Unfortunately, this often leads to companies charging outrageous fees or fines just because you are a few days late on your bills. Such a system may seem unfair, especially if you have been a long time customer. The fact remains that this is how business is conducted and you will have to find a way to work around this dilemma.
Two options that you may want to consider is the installment loan or the payday loan. Both of these are great ways to come up with up to $1,500 or less in quick cash to cover unexpected expenses or late bills. With several bad credit installment loan lenders available online and in the state of Texas, getting the cash that you need in a timely manner has never been so easy. Don’t forget about the payday loan which can be a great short term loan option that works for many borrowers.
So whats the difference between the two?
Installment loans vs. payday loans
You may have heard the terms used interchangeably but actually there is a difference. They both do in fact offer people the ability to borrow cash to pay for those unexpected expenses or to bridge the gap between bill due dates and pay dates. Where they differ is the terms and conditions.
The Payday loan
With the payday loan, you are able to borrow a small amount of cash, usually just a few hundred dollars, and pay the full amount back when your next paycheck arrives. These loans are typically available to individuals with proof of a paying job. Borrowers typically have to submit proof of income such as a recent pay stub in order to qualify for this type of short term loan. Many payday lenders do not take your credit into account when issuing such a loan. They simply give you the money and collect as much personal information as possible, enabling them to find you in the event that you do not pay up. These types of loans usually carry a fairly hefty fee. The fee amount will vary from state to state but the Texas maximum payday loan rate is 10% of the loan plus 48% annual interest in addition to a $12 monthly fee. Texas state laws allow lenders to give these types of loans for a period of between seven and thirty-one days. Several states impose a maximum loan amount but in this state it does not apply.
Installment loans are a whole different animal. The main difference between the payday loan and the installment loan is the length of the loan and the amount. With an installment loan the loan duration is typically greater, lasting a year or more. The borrower and the lender agree to terms with equal monthly payments which include the principal, interest and any applicable fees. One advantage of this type of loan is that you are able to borrow money for a longer period of time and the amount is typically larger, usually up to $1,500 in many instances. These can be a better option if you need a larger sum of money and are not able to pay it back with you next paycheck. Examples of such bills may be an unexpected automotive repair or tuition for your children’s college. Interest on these loans are typically compounded daily so it is always in your best interest to pay the full amount back as soon as possible to avoid paying excessive interest charges.
You may be wondering who would agree to take out a loan with such terms and the answer may surprise you. These borrowers can be your coworkers, neighbors, friends, or even your family members. Recent data shows that the majority of borrowers have a monthly household income greater than $25k, have attended college, and are under the age of 45.
Which loan should I choose?
There are several different factors that you should consider before taking out any loan. Here are a few that apply specifically to payday loans and installment loans:
- The duration of the loan. will you need the cash for a short period of time such as a couple weeks or will you need several weeks to repay your loan?
- Interest rates and fees. This can vary greatly between the type of loan that you obtain. Some loans have an APR of 400% or even 500%. Be sure to understand all fees and charges before signing for a loan
- Amount of cash needed. Generally speaking, payday loans are reserved for those who need a small amount of cash such as $300. Installment loans are better for larger amounts such as $1,000.
- Your ability to repay a loan. If you are unsure of your long term employment, an installment loan may not be a good choice for you. These loans often take several weeks or even several months to repay.
Payday lenders and installment loan lenders in Texas
Due to the popularity of these short term loans in the state of Texas, there is no shortage of lenders willing to hand over your much needed cash. Here are a few lenders in your area who are ready to do business. Remember, be sure to read all information that is provided before making such a financial decision.
Ace Cash Express
This website now does business in the state of Texas. Keep in mind that not all online lenders are capable of issuing a loan in this state. It is important to first research this information before proceeding with the loan application. If you do not feel comfortable giving your information out on the internet, you can go to one of their brick and mortar stores if convenient. There are currently 42 locations in the Dallas Tx area. There are actually hundreds of Ace Cash locations across the entire state of Texas from Austin to El Paso.
Ace Cash is willing to lend to just about anyone, even if they have bad credit. As for installment loans, you may be able to get up to $1,500 cash overnight when you apply. As for payday loans, these are issued up to $1,000 and are just as easy to get. There is no need to fax anything in. The application can be completed and submitted online, making it easy for just about anyone to apply.
Once you have submitted your application and it has been approved, a representative will give you a call shortly to verify some information and process your loan. Once the loan has been processed you can stop by any of their locations and pick up the cash. An alternative is to have the money directly deposited into your bank account. This means that you can obtain a loan and have it funded to your bank without ever leaving the house. There website claims that the company has served over 38 million people, making it more reputable than other fly-by-night lenders.
Commercial Bank of Texas N.A.
This bank offers several different types of loan products and has several locations across the state of Texas, mainly in Angelina county and Nacogdoches county. They have everything from small business loans to personal installment loans and auto loans. When it comes to getting cash for events such as weddings, funerals, or leisure, this bank has you covered. Applying for an installment loan is easy and requires that you list your basic information along with some type of collateral that you are willing to put forth.
Commercial bank of Texas does not freely advertise their rates, as many other lenders also choose. This is usually because the rates change on a daily basis, making it an ongoing task to update on a daily basis. The best thing that you can do is call one of there locations closest to you to find out more information about the products that they have to offer and to determine if one of them may be a good fit for you.
Installment Loans Texas
This company boasts “cash in less than one hour” and also accepts those who have bad credit or even no credit. They offer both installment loans and payday loans which can be quite helpful when it comes to getting out of a tight bind.
Their payday loans can be obtained for as much as $1,500 and are available to anyone over the age of 18, a Texas resident, and one who has a checking account. In addition, you will also have to be employed in order to receive a loan. These are their only requirements to get a payday loan. Even if your credit is ugly, Installment loans Texas gives you a second chance.
They offer regular installment loans and also short term installment loans. The short term loans are offered for a time period of between 14 and 30 days while the regular loans can be longer. One thing that you should keep in mind is that you must earn a monthly income of at least $1000 in order to qualify for this particular loan.
Installment Loans Texas does not appear to be an actual lender but rather one who finds you the best deals with their network of lenders. The process of obtaining a loan seems fairly straight forward and simple. You provide this company with your information by completing an application and they find someone who is willing to take on your loan. It seems as if they have several lenders that they work with so they are a lot like a broker when it comes to finding payday loans and installment loans.