Payday loans were illegal in Texas until the early 1990s and were relatively unpopular until the early 2000s. A loophole in the law was enough to change that. In 2001, Payday Loans discovered a loophole in the law that allowed it to register as a “credit service company.”  This was a clear signal that something had to change. This adjustment came in the form of the Lending City Ordinance, which imposed stricter regulations than state law. 45 cities across the state have adopted these new Texas payday loans regulations.           

From 2004 to 2011, payday loans in Texas grew rapidly, and in 2016 the state held its 23% share of the total US payday loan market. Recently, the winds have turned again, creating a very exciting lending scene as cities enacted their own regulations.

Payday Loans Eligibility Requirements in Texas

Payday loans would not be so famous if they would be hard to apply for or acquire. There are basic requirements to be eligible to apply for these loans:

  • 18 years or older.
  • Be a Texas resident.
  • Active checking account.
  • Have a recurring source of income.

Texas State Laws

  • APR can exceed 400%.
  • No borrowing limit is specified.
  • Loan duration is 7-180 days.
  • Loan fee – $10 + $4/month for each $100.
  • Unlimited rollovers.
  • No-cooling off period.

Lending City Ordinance Rules

  • Payday loans must be approved by the city.
  • Lenders must maintain an account for each transaction.
  • The loan (including fees) should not exceed 20% of the applicant’s gross monthly income.
  • Up to 3 renewals and 4 installments.
  • For each installment, you must repay 25% of the original loan amount.
  • $500 fine for violating these rules.

To stay away from illegitimate lenders, look for the most reliable and law-abiding providers in the state. Some of the reliable providers for best payday loans in Texas are as follows:

Ace Cash Express

ACE Cash Express was founded in 1968 and has made a name for itself in a niche market. This company offers reliable online payday loans and in-store loans. Speaking of which, they operate over 920 stores in his 13 states. They offer loan amount of $50 to $1,500 (caps may be lower in some states) for a loan term of 9-35 days. Their effective interest rate depends on the loan term and generally stays between 231-661%. They do not perform any credit checks and assures immediate loan decision.

Advance America

Advance America, is one of the industry pioneers, and has been in business since 1997. Advance America offers the best payday loans on the market. They run a full disclosure business that always puts the customer first. At Advance America, the consumers can borrow up to $1000 with no hard credit checks. Loan application request is approved almost immediately and funds are promised to be made available in borrower’s bank account within next business day. They also ensure safe and secure online loan processing.

Payday TX

Payday TX is one of the new comers in the payday loan industry and winning people’s heart by offering immediate approvals and same day cash deposit. Abiding Texas state laws, they offer loan amount up to $1000 even to the people with bad credit. Installment loans Texas is another service which comes with the repayment flexibility for the borrowers. Their cash advance APR may vary depending on the loan term; however, it typically stays 391%. Their loan application is 100% online and hassle free so the borrower does not need to visit the physical store and can borrow the required amount just from the comfort zone.

Check into Cash

Check into Cash is among the simplest payday loans providers out there since 1993. They operate over 800 stores across 20 states in US. It is a well-established brand in payday lending industry with numerous storefronts, which is sort of reassuring to several customers. On the downside, they do run credit checks on new customers. As per state laws, they also offer loan amount up to $1000 with loan term of 14-30 days. Their APR depends on the loan term (261-782%) and they require minimum of 300 credit score to apply for loan with them.


If you’re looking for a reputable company with a long history and excellent reviews, you don’t need to find it anymore. CashNetUSA is in the business since 2004 in 18 US states providing short term loan services to more than 4 million customers. They provide loan amount for the first-time borrowers between $ 100 to $ 1,500 (the upper limit is set in some states) for a loan period of 14-35 days. Their interest rate varied depending on the loan period and could be 208-520%. They also offer 24 hours payday loans with no credit check guaranteed.