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Payday loans in Texas

Payday loans for bad credit in Texas

Payday loans are allowed in Texas from state-licensed lenders (Credit Access Business license/registration). Here are the limits Texas law sets, what a typical loan can cost, and where to get free help if you need it.

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Last updated .

Part of the Texas guide

What Texas law allows

Payday loans in Texas
ProductStatusAPR capAmountTermLicenseLaw
Payday loans[1][2] AllowedNo rate limit in state law No rate limit Not set by statute Not set by statute Credit Access Business license/registration Tex. Fin. Code Chapter 393, Subchapter G
Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow.

Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.

The rules in full

Payday loans

Rate cap
Texas does not cap payday loan APR/fees by statute in the way most states do. Instead, payday loans ('deferred presentment transactions') are arranged by state-licensed Credit Access Businesses (CABs) that connect consumers with third-party lenders; the CAB charges its own fee for arranging or backing the loan, which is not subject to Chapter 342's or Chapter 393's interest caps because the CAB itself is not the lender.
Fees
CABs must provide the Finance Commission's prescribed consumer disclosure of all fees and total repayment amount before the consumer signs, and consumers may cancel a payday loan by the close of the next business day without penalty.
License
Credit Access Business (CAB) license/registration under Tex. Fin. Code Chapter 393, Subchapter G (Sections 393.601 et seq.), OCCC; each CAB location also pays an annual assessment fee (Section 393.628) funding financial education.

Full detail for every loan type: Texas lending laws.

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Rent and jobs in Texas

Typical rent and the jobless rate, to weigh before a loan payment.

Rent and unemployment in Texas
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[3]$1,557FY2026
Unemployment rate[4]4.4%2026-08

Other options in Texas

Cheaper options to try first

Worth checking whatever your credit: these can cost less than a high-rate loan.

  • Credit union payday alternative loans (PALs), capped at 28% APR under NCUA rules (12 CFR 701.21).
  • Nonprofit credit counseling through the National Foundation for Credit Counseling.
  • A payment plan from the company you owe, if you ask before you miss a payment.
  • 211 for help with rent, utilities and food: call 211 or visit 211.org.

More cheaper options in Texas.

Other loan types allowed in Texas

See every loan type Texas law allows.

Payday loans in nearby states

Sources

  1. Justia. Tex. Fin. Code Chapter 393, Subchapter G. Retrieved September 23, 2026.
  2. occc.texas.gov. Texas Office of Consumer Credit Commissioner (OCCC). Retrieved September 23, 2026.
  3. National Low Income Housing Coalition. Out of Reach 2026: Texas. Retrieved September 23, 2026.
  4. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

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Important disclosures

APRs vary by lender and state in Texas. Each lender sets its own rates and terms and must show you the APR before you sign.

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  • Questions about a lender licensed in Texas? Contact the Texas Office of Consumer Credit Commissioner (OCCC) or file a state complaint.
  • You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.