Payday loans in Texas: the rules
Research draft — pending verification against the Texas Office of Consumer Credit Commissioner. {{VERIFY}}
Payday lending is legal and regulated in Texas.
Payday loans operate largely through credit access businesses (CABs); costs are effectively uncapped, with municipal ordinances in some cities.
The numbers at a glance
| Status | Legal |
|---|---|
| Maximum amount | No statutory cap (CAB model) |
| Fee / rate limits | No effective statutory cap; CAB fees vary |
| Term limits | 7–180 days typical |
| Regulator | Texas Office of Consumer Credit Commissioner |
All figures are drafts compiled from public sources and must be confirmed with the regulator before relying on them. State legislatures change these rules — see our state law update tracker.
Payday loans in Houston, San Antonio, Dallas and across Texas
The same state rules apply whether you're in Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso or Arlington — payday lending in Texas is regulated at the state level, so the caps and terms above hold statewide, storefront or online. Online requests like ours reach the same state-licensed lenders that serve every Texas ZIP code, without a trip to a storefront. City ordinances can add local rules for storefronts in some states {{VERIFY}} — the loan agreement must follow state law either way.
Free and low-cost help in Texas
Before borrowing — or if a loan has already gone wrong — every Texas resident can call 211 for emergency rent, utility, food, and medical assistance programs in Houston and statewide (what 211 covers). Nonprofit credit counseling is free or low-cost statewide, and complaints about a lender go to the Texas Office of Consumer Credit Commissioner, which also runs the license lookup you should check before signing. See also: how to verify a lender's license.
What a typical loan costs in Texas
Texas's fee rule (No effective statutory cap; CAB fees vary {{VERIFY}}) is what your loan agreement has to respect. As a feel for the math: a two-week $300 loan at $15 per $100 costs $45 — about 391% APR — and the same fee structure over 30 days is about 183% APR. Run your own numbers in the cost calculator before you sign anything, and compare it against a pay advance app or credit union small-dollar loan first.
Borrowing here, sensibly
Legal doesn't mean cheap — payday-style credit in Texas still typically costs triple-digit APRs. Check the cheaper options first, run the numbers in the cost calculator, and if you do borrow, verify the lender's license with the Texas Office of Consumer Credit Commissioner and never borrow more than your next paychecks can absorb.
Texas questions
How much can I borrow in Texas?
The state's general limit is No statutory cap (CAB model). Individual lenders may offer less depending on your income and history. Draft figure — verify with the Texas Office of Consumer Credit Commissioner.
What do payday loans cost in Texas?
No effective statutory cap; CAB fees vary. Terms typically run 7–180 days typical. Your loan agreement must state the exact finance charge and APR before you sign. Draft figures — verify with the Texas Office of Consumer Credit Commissioner.
How do I check whether a lender is licensed in Texas?
Search the Texas Office of Consumer Credit Commissioner's license database or call them before you sign anything. Licensed lenders must follow the state's caps and collection rules; unlicensed ones are a major red flag.