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Texas has long been considered one of the most affordable states to live in, and a recent study showed that it has the 17th lowest cost of living in the United States. Even so, prices continue to rise throughout the country—even in Texas. Because of this, many people turn to personal loans as a way to make ends meet.

Even if you live in a rural area with limited banking options or have poor credit, you can still get a personal loan in Texas. Not only are these loans convenient, but you can also tailor them to your needs. You can use one to pay for unexpected costs like medical bills or car repairs. Or you can use the funds to cover a short-term expense resulting from a major life event like marriage or childbirth.

If you live in Texas and need funding quickly, apply now for a personal loan with Jora. All you need is access to the internet and a couple of minutes to complete the application. Depending on what time you apply, you could receive up to $4,000 within the same business banking day.

Types of Loans in Texas

Types of Loans in Texas, the Lone Star State, has been experiencing rapid growth over the past years. From 2010 to 2017, the state experienced a 17% increase in population—from around 25,241,897 in 2010 to 29,527,941 in 2021.

There are several reasons for this population growth. One is the increase in job opportunities in the state. In a single year, the state added 306,900 new jobs across multiple industries. Another big reason why people are moving to Texas, of course, is the affordable cost of living there. But as the state population continues to rise, so too do prices. Everything from the cost of consumer goods to the price of real estate is increasing.

If you live in Texas or plan to make the big move, knowing your loan options can help you avoid (or handle) unexpected financial problems. With that in mind, here are the main types of loans in Texas for those who need funds quickly:

  1. Personal loan: A personal loan is borrowed money you can get through a bank, credit union, or private online lender. These loans usually have a set repayment period and require you to make regular monthly payments until you repay the balance. You can use the funds for nearly anything, from home renovations to emergencies.
  2. Payday loan: A payday loan is a small unsecured loan with a short repayment period—usually 2-4 weeks. Like other loans, these come with interest and may have lender fees. They often don’t require a credit check but have higher interest rates than most personal loans.
  3. Title loan: A title loan is another short-term loan with high interest rates. These have low eligibility requirements but use the borrower’s vehicle title as collateral. If you fail to make payments, the lender could seize the vehicle.

Other forms of credit in Texas include home equity lines of credit (HELOCs), cash advances, and traditional lines of credit.

If you’re looking for a personal loan that can be repaid in monthly installments and doesn’t require good credit, apply now with Jora.

What to consider when looking for loans

The loan requirements in Texas vary based on the loan type and lender. Bad credit loans—like payday or title loans—typically have more relaxed requirements than installment loans. Regardless of the loan type, it’s good to know certain information before applying. That way, you can be prepared from the get-go.

With that said, here’s what you should consider when applying for a loan in Texas.

Credit score and history

Your credit score depends on several factors, including payment history and the average age of all open credit accounts. Most lenders check your credit score before approving a loan application.

The higher your credit score, the better your chances of qualifying for a loan with low interest rates and favorable repayment terms. With good credit, you could potentially save hundreds or even thousands of dollars in interest fees over the life of the loan.

If you’re not sure what your credit score is, request a free copy of your credit report from the three major credit bureaus. Review it for any errors currently bringing down your score. If your credit isn’t where you want it to be, try improving it before applying for a loan.

Monthly payments and debts

Review how much you currently pay monthly for things like credit card bills, other loans, rent or mortgage payments, and everyday expenses. Make sure you can afford any monthly payments the new loan has before applying for it. Otherwise, you could end up trapped in a cycle of debt that’s hard to escape.

The average median household income in Texas is $63,826—roughly $5,318 a month. If you spend, say, $5,000 a month on all household expenses, that leaves you with $318. Ask yourself if this is enough to take on another loan payment. If it’s not, hold off for now.

Keep in mind that lenders often consider your debt obligations as part of the lending criteria. If you don’t have enough left over, they may not approve the application at all.

Employment status and income

Along with credit score and monthly expenses, lenders typically check your income and employment status. Many require certain documentation proving you’re currently employed during the application process, too. These could be W-2 forms, a letter of employment, bank statements, or previous years’ tax returns.

Before applying for a loan in Texas, calculate your total income. Make sure you account for all income sources, including alimony, child support, or money earned through a side gig.

Other assets

If you’re applying for a secured loan, you’ll need to provide proof of additional assets to boost your chances of qualifying. These assets may act as collateral in case you default on the loan. They can also help improve your approval odds if you have poor credit, limited credit history, or low income.

Applying with a cosigner

If you have poor credit or don’t qualify on your own, choose a lender that offers joint loans or accepts cosigners. A cosigner, especially if they have good credit or high income, could boost your approval odds.

Rates and terms

Most lenders list their typical loan rates, terms, and amounts where they’re easy to find. However, you may need to go through the application process to learn your exact rates.

Short-term loans often have a higher APR (annual percentage rate), making them an expensive form of credit.

Some short-term loans, like payday loans, must be repaid on the borrower’s next payday. Others, such as those offered by Jora, can be repaid in set amounts over several months. Although they can still be expensive, they’re also easier to manage.

Both the APR and loan term can determine your monthly payment amount and how much you’ll end up paying in interest. Use our online calculator to get an idea of what the loan will cost each month—and in total.

Lender’s reputation and licensing

Finally, check the reputation of any lender you’re interested in borrowing from, as well as their licensing status. They should be licensed in your state to lend money. If they’re not, steer clear.

As for reputation, check on sites like the Better Business Bureau (BBB) and Trustpilot to see what other customers are saying about them. Jora, for example, has 4.7 out of 5 stars on Trustpilot with 1,210 reviews. See if the lender has any online testimonials on their main website, too.

Knowing what others are saying can go a long way toward learning whether the lender is reputable and what you can expect as a customer.

Loan requirements

In addition to credit score and income requirements, many lenders require some or all of the following:

  • Maximum debt-to-income ratio (DTI): This value takes all your monthly debts and divides them by your monthly income. The resulting percentage is your DTI. For example, if you pay $2,000 for all monthly debts and make $3,000 a month, your DTI would be 66%. Most lenders won’t approve applicants with a DTI higher than 40% or 50% (excluding mortgage payments).
  • Loan fees: Many lenders charge additional fees for their loans, such as prepayment penalties or origination fees. A prepayment penalty occurs when you repay a loan ahead of time. Origination fees occur at the start of the loan and are typically tacked on to the monthly payments.
  • Proof of identity: To get a loan, you’ll typically need two or more forms of identification. This could be your government-issued driver’s license or state ID. Or it could be a Social Security card, passport, or birth certificate. Be prepared to make copies of these so you don’t have to submit the originals.
  • Proof of address: Be prepared to provide documents proving where you live—in this case, in Texas. This could be a rental agreement, property lease, or utility bills to your current address. Some lenders are only licensed in specific states, so this is important to have.
  • Citizenship and residency: When looking for a lender in the United States, check their residency and citizenship requirements. Many lenders only work with borrowers who are permanent residents or U.S. citizens.
  • Loan purpose: Some lenders offering installment or personal loans in Texas might ask why you need the funds. Common reasons include home improvements, medical bills, or vacation expenses. Lenders that primarily offer bad credit loans may not ask this, but it doesn’t hurt to be prepared.
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Reasons to Get a Personal Loan in Texas

If you live in Texas and need money fast, a personal loan could be a good choice. You can apply online easily, and many lenders will get you the money fast, often as soon as the next banking business day.*

Once you have the money, you can use it to cover emergencies, handle unexpected expenses, or pay for big-ticket items.

Before you decide on a loan, make sure you can consistently meet scheduled payments. If you can, a personal loan can be really helpful when money is tight. With that in mind, here are some common reasons why people in Texas get personal loans:

Pay for Emergencies

Emergencies happen to everyone. Even if you have some money saved up, it might not be enough when things go wrong.

For example, let's say your car breaks down on your way to work. You can use a personal loan to pay for the repairs. If you choose a lender that gives you money quickly, you won't have to wait long to fix the problem.

Other unexpected things can come up too. Your kitchen pipes might burst and need fixing right away. Or someone in your family might lose their job or have their work hours cut. A personal loan can help when you're in a tight spot and need money fast.

Cover Unexpected Bills

Sometimes, bills show up that you didn't expect. These could be medical bills you didn't see coming, higher property taxes, or costs for a funeral. When you're not ready for these bills, a personal loan can be a solution.

Think about medical bills, for instance. Some hospitals let you pay over time, but there are times when you have to pay all at once. You might even get a bill months after you were treated. With a personal loan, you'll have the money to take care of these bills when you need to.

Plan for Big-Ticket Items

When you're getting ready to buy something expensive, a personal loan can be really useful. You can use the money to buy things like new appliances for your home, such as a refrigerator or washing machine. You can also use the loan to help pay for big life events like having a baby. The flexibility of a personal loan makes it easier to handle important life events and big purchases.

How to get a personal loan in Texas

Getting a loan—payday loan, bad credit loan, installment loan, or otherwise—in Texas is fairly straightforward. The traditional way of getting one is through a bank or credit union. You typically need to go in person, but you can also apply online.

Now, there are many other ways to get these loans without ever having to leave your house. Online lenders like Jora have a simple application process that you can do entirely online.

The first step is to ask yourself a few questions, such as:

  • How much do you need and why? Never take out more than you need.
  • How will taking out a loan help you? Do you need the funds for an emergency or something else?
  • Can you afford to repay it on time? Calculate the estimated payments into your budget. Missing even one payment could hurt your credit score and chances of qualifying for future forms of financing.
  • What are my other options? Do you qualify for another form of financing? Can you wait to take out a loan?

Next, find a reputable lender licensed in Texas. You might use an online marketplace to compare different online lenders in your area.

Check what each lender offers and make sure it works with what you need. See what their typical APRs, repayment terms, and fees are.

Along with this, check the lender’s requirements to make sure you’re eligible. This could mean checking your credit score before applying or ensuring your income is where it needs to be.

If you’re interested in taking out an installment loan for bad credit, Jora’s application process is simple:

  • Create an online account and complete the online application. This process takes just a few minutes and requires basic personal and identification details (e.g., name, SSN, email address, birthday, and state of residence).
  • Provide additional information. This may include your bank’s routing number and your checking account number. It could also include your driver’s license or state-issued ID number.
  • Submit the application. It usually takes a minute or less for Jora Credit to decision the application.
  • Accept the offer and receive funds.If you apply before 10:30 a.m. Central time (Monday through Friday), you could receive funds that same business banking day.*

Some lenders perform a soft inquiry into your credit to check your history. This process doesn’t affect your credit score but can give you an idea of your options and possible loan terms and interest rates. Other lenders may only perform a hard credit inquiry, which could cause your score to drop by a few points.

Things to Consider Before Taking a Personal Loan in Texas

Navigating the process of getting a loan in Texas requires careful consideration and planning to ensure a successful borrowing experience. Whether you're seeking a bad credit loan or payday loan, there are several key factors that play a role in securing a loan.

First, it's imperative to assess your current financial situation. This involves taking a close look at your income, expenses, and existing debts. Lenders in Texas, as in any other state, will evaluate your ability to make timely payments based on your financial stability. A clear understanding of your financial health will guide you in determining the loan amount you can comfortably afford.

Your credit history and credit score hold significant weight in the loan approval process. Lenders in Texas will scrutinize these factors to gauge your creditworthiness. A lower credit score typically translates to higher interest rates. Before applying for a loan, it's advisable to review your credit report for any inaccuracies and take steps to improve your credit score if necessary. This might involve paying off outstanding debts, rectifying errors, and establishing a history of on-time payments.

Why Jora Credit?

We are a state-licensed, direct lender providing online loans that give you access to the funds you need.
It’s easy to apply right from your phone, laptop or tablet – anywhere, anytime. And it only takes a couple minutes.
Plus, there's no application fee and no prepayment fees if you want to pay off early and save some money on interest.
Accept your loan by 10:30am Central time (Monday - Friday excluding holidays) and you can get your funds on the same day.*
Secured vs. Unsecured

Two main types of personal loans exist: secured and unsecured.

  • Secured personal loan: Secured loans are typically easy to get as they don’t require good credit to qualify. The caveat is that they require collateral—usually an asset like a car or house—in exchange for funds. This collateral acts as a security deposit that the lender can use if the borrower doesn’t make payments.
  • Unsecured personal loan: The main difference between a secured and unsecured personal loan is that unsecured loans don’t require collateral. Instead, lenders mainly rely on the borrower’s credit, income, and other factors in their decision-making process. It’s possible to get an unsecured loan even with poor credit through online lenders like Jora.

Both types of personal loans come with a certain level of risk. For example, if you fail to make payments on time, you could hurt your credit score. You could also incur additional interest charges or late fees. If you still don’t pay, the lender could send your account to collections.

Make sure you understand the risks and can afford the monthly payments before applying for any type of loan. That way, you can avoid long-term repercussions.

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How Credit Plays into Loans

A person’s credit score plays a major role in their financing options and can affect the rates and terms they can get. Credit scores range from 300 to 850. Anything 670 and above qualifies as “good” credit.

Borrowers with good credit are more likely to have their applications approved than those with bad credit. This is because lenders check credit to see how likely the individual is to repay what they owe on time.

Having bad credit can make it harder to qualify for loans or lines of credit. It can also lead to higher APR and shorter loan terms.

Several factors make up your credit score, including:

  • Payment history: Accounting for 35% of your FICO score, payment history shows your ability to repay your debts on time.
  • Credit history length: Making up 15% of your score is how long you’ve had credit. This primarily focuses on the average age of all open accounts.
  • Credit utilization: This is the percentage of credit you’re currently using vs. how much you have across all open accounts (loans and lines of credit). It makes up 30% of your FICO score.
  • Credit mix: About 10% of your credit score depends on your credit mix, or the different types of open accounts you have.
  • New Credit: Hard inquiries (made when a lender checks your credit report) and new accounts make up 10% of your credit score.

Two other factors that play into credit are negative marks and errors.

Negative marks include things like bankruptcies or foreclosure. Filing for bankruptcy can stay on your credit report for 7 to 10 years, depending on the type.

Frequently asked questions
We bring honesty and transparency to financial services technology

Jora offers two types of loans, depending on your state of residence – installment loans and lines of credit. To see which type of loan is offered in your state, please view the What it Costs page and select your state.

Jora Credit is the Lender. Jora Credit operates under state specific companies, licenses, and rules for the states that it services. Jora Credit does not lend or arrange loans or lines of credit in all states. Please see What it Costs for the serviced states and applicable terms.

FAQs (People also ask)
How much can I borrow?

If you’re a first-time borrower, you can take out a Jora loan for $500 to $4,000. The exact amount depends on a few factors, such as your state of residence (and the available loan offerings) and credit score.

How long does it take?

You could receive funds the same day you apply, as long as your application is approved before 10:30 a.m. CT on a business day. If you apply after this, funding is typically available the following day.

What happens if I have bad credit?

Jora offers installment loans for people with bad credit. You must provide proof of income (e.g., a job) and some basic financial and personal details to help with the approval process. Depending on this information, you may receive a lower loan amount.

More State Info

From installment loans and personal loans to bad credit loans, there are several options for Texans who need funds quickly. These loans can help in an emergency and keep you afloat until you get your finances back on track. They can also be beneficial for covering small expenses like vehicle repairs or a family vacation.

Before applying for a personal loan in Texas, check out the lender’s requirements. Be prepared to provide basic personal and contact details, plus employment and banking information. It’s also a good idea to know your credit score in advance so you know what you qualify for and at what rates.