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State guide

Texas bad credit loans, loan laws and local help

Loan options, state rules and local help for Texas residents with bad credit: which loan types Texas law allows, what a typical loan can cost, and who to call when money is tight. Checked against state sources on September 23, 2026.

Last updated .

BadCreditMD is not a lender or broker. We explain your options; a lending network partner shares requests with lenders, who set their own rates and decide whether to lend. See disclosures.

Texas at a glance

Loan options in Texas

Every loan type we cover is listed, including the ones Texas law does not allow, so you can see why and what else can work.

Other ways to borrow

What a loan can cost in Texas

Worked examples at an illustrative rate, never above Texas's rate cap for that loan amount where the law sets one. They are examples, not quotes.

Representative example

Amount borrowed
$500
Annual percentage rate (APR)
29.99%
Repayment
12 monthly payments
Payment
$48.74
Finance charge
$84.88
Total of payments
$584.88

Example: a $500 installment loan at 29.99% APR repaid in 12 monthly payments of $48.74 costs $584.88 in total, including a finance charge of $84.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
27%
Repayment
12 monthly payments
Payment
$96.02
Finance charge
$152.24
Total of payments
$1,152.24

Example: a $1,000 installment loan at 27% APR repaid in 12 monthly payments of $96.02 costs $1,152.24 in total, including a finance charge of $152.24. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$3,000
Annual percentage rate (APR)
21.1%
Repayment
12 monthly payments
Payment
$279.49
Finance charge
$353.88
Total of payments
$3,353.88

Example: a $3,000 installment loan at 21.1% APR repaid in 12 monthly payments of $279.49 costs $3,353.88 in total, including a finance charge of $353.88. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Resources in Texas

Free and low-cost places to turn in Texas, each linked to its official source and dated when we last checked it.

  • Lending regulator and complaints

    Texas Office of Consumer Credit Commissioner (OCCC) licenses lenders in Texas. Check a lender's license here, and file a complaint if something goes wrong.

    Check a lender's license File a complaint

    occc.texas.gov Checked September 23, 2026

  • Attorney general consumer protection

    The attorney general's consumer protection office takes complaints about scams, unfair debt collection and other business practices.

    Contact consumer protection

    texasattorneygeneral.gov Checked September 23, 2026

  • 211

    Call 211 or visit your local 211 site to reach help with rent, utilities, food and other urgent bills.

    Find your local 211

    211texas.org Checked September 23, 2026

  • Legal aid

    Free civil legal help for people with low incomes, including debt collection, repossession and eviction problems. Income limits vary.

    Find legal aid

    trla.org Checked September 23, 2026

  • Nonprofit credit counseling

    Nonprofit counselors can help you build a budget or set up a debt management plan. Look for an NFCC or FCAA member agency.

    Find a nonprofit counselor

    nfcc.org Checked September 23, 2026

  • Benefits portal

    The official site for checking whether you qualify for food, cash or other benefits in Texas, and for signing up.

    Check benefits

    yourtexasbenefits.com Checked September 23, 2026

  • Federal complaints

    Submit a complaint about any lender to the Consumer Financial Protection Bureau.

    Submit a complaint to the CFPB

    consumerfinance.gov Checked September 23, 2026 Available in Spanish

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). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
  • Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
  • Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
  • Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Texas.

The rules lenders follow in Texas

These rules protect you as a borrower and explain the labels above. Each one links to the source we took it from. How we research state rules.

Allowed in Texas: installment and personal loans, title loans and payday loans.

Lending law in Texas
ProductStatusAPR capAmountTermLicenseLaw
Installment and personal loans[1][2][3][4] Allowed Tiered cap Not set by statute Not set by statute Regulated Lender License, Texas Finance Code Chapter 342, issued by the Office of... Tex. Fin. Code Chapter 342, Subchapter E
Title loans[5][4] Allowed No numeric cap Not set by statute Not set by statute Credit Access Business Tex. Fin. Code Chapter 393, Subchapter G, Section 393.601
Payday loans[5][4] Allowed No numeric cap Not set by statute Not set by statute Credit Access Business 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.

Rate, fee and license rules in Texas

Installment and personal loans

Rate cap
Tex. Fin. Code 342.201(e): for loans not secured by real property, 30% per year on the part of the cash advance up to the $500 reference-base amount, 24% on the part above that up to the $1,050 reference-base amount, and 18% on the part above that up to the $2,500 reference-base amount; reference-base amounts are adjusted periodically by the OCCC (current bracket bulletin dated 02-04-2026). Alternatively, 342.201(d) permits the Chapter 303 optional ceiling. Single-payment loans follow 342.202.
License
Regulated Lender License, Texas Finance Code Chapter 342, issued by the Office of Consumer Credit Commissioner (OCCC).

Title loans

Rate cap
Same Credit Access Business (CAB) framework as payday loans: a CAB arranges a 'motor vehicle title loan' (a loan secured by an unencumbered motor vehicle title, excluding retail installment sales financing under Chapter 348) made by a third-party lender, and the CAB's own fee is not subject to a statutory interest cap the way a direct lender's would be.
Fees
No statutory fee cap found on CAB title-loan fees; same Finance Commission disclosure and next-business-day cancellation rules as payday loans apply.
License
Credit Access Business (CAB) license/registration under Tex. Fin. Code Chapter 393, Subchapter G, OCCC.

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. Consumer groups report effective costs in Texas as among the highest in the country as a result.
Fees
No statutory fee cap found on CAB 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.

Money snapshot for Texas

Texas household and credit data
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[6]$1,557FY2026
Population[7]31,290,8312024
Unemployment rate[8]4.4%2026-08

Guides for Texas borrowers

Check your options in Texas

Check your optionsYour request goes to a lending network partner, who shares it with lenders. Lenders set their own rates and decide whether to lend. There is no fee to use our service.

Texas questions

Does Texas law allow payday loans?

Texas law allows payday loans. State law sets no numeric cap on the cost. Source: Tex. Fin. Code Chapter 393, Subchapter G.

What is the most a lender can charge in Texas?

By loan type in Texas: Installment and personal loans: Tiered cap. Title loans: No numeric cap. Payday loans: No numeric cap.

Where can I file a complaint about a lender in Texas?

You can file a complaint with Texas Office of Consumer Credit Commissioner (OCCC), and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Texas on this page.

How do I check a lender's license in Texas?

Texas Office of Consumer Credit Commissioner (OCCC) licenses lenders in Texas. Use the license link under Resources in Texas on this page to check a lender before you share your information.

Is there free help paying bills in Texas?

Yes. Resources in Texas on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.

Can I get a loan in Texas with a 500 credit score?

Lenders look at more than your score, such as income and existing debts, and each sets its own rules. BadCreditMD cannot tell you whether a lender will approve you.

Nearby states

Sources

  1. occc.texas.gov. Retrieved September 23, 2026.
  2. occc.texas.gov/industry/cab/licensing-forms. Retrieved September 23, 2026.
  3. statutes.capitol.texas.gov. Tex. Fin. Code Chapter 342, Subchapter E. Retrieved September 23, 2026.
  4. occc.texas.gov. Texas Office of Consumer Credit Commissioner (OCCC). Retrieved September 23, 2026.
  5. Justia. Tex. Fin. Code Chapter 393, Subchapter G. Retrieved September 23, 2026.
  6. National Low Income Housing Coalition. Out of Reach 2026: Texas. Retrieved September 23, 2026.
  7. U.S. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
  8. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

Important disclosures

Illustrative range for installment loans in Texas: APRs from 5.99% to 30%, where the state APR cap is 30% at most and lower on larger loans. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.

  • BadCreditMD is not a lender or broker and does not make loans or credit decisions. When you submit a request, a lending network partner shares it with third-party lenders, and those lenders or the partner may pay us a fee for each referral. The lenders decide whether to offer you a loan.
  • There is no fee to use BadCreditMD. Lenders or our lending network partner may pay us.
  • Lenders set their own rates, fees and terms. Offers depend on your credit, income, state of residence and each lender's criteria.
  • Our service is not available in all states, and not every loan type is available in every state.
  • By submitting a request you consent to lenders checking your credit, which may affect your score, and to your information being shared with them.
  • Submitting a request does not mean you will be approved or funded, or that you will receive any particular amount or rate.
  • Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
  • BadCreditMD publishes general information about loans and state rules. It is not legal or financial advice.
  • BadCreditMD is operated by BadCreditMD, LLC, 30 N Gould St Ste N, Sheridan, WY 82801. Contact: pr@badcreditmd.com. Full details are on our disclosures page and disclaimer.
  • 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.