- Payday loans are legal in Texas under the Texas Finance Code chapter 393 (Credit Access Businesses).
- The typical APR on a $400 payday loan in Texas was 662% (CRL, June 2023, from state regulator data).
- Texas law sets no cap on payday loan fees, so prices vary widely by lender.
Payday loan rules in Texas
| Rule | Texas |
|---|---|
| How it works | Most payday and title loans are arranged by licensed Credit Access Businesses (CABs) with a third-party lender |
| Fees | CAB fees are not capped by state law, which is why Texas has some of the highest APRs in the country |
| Licensing | Each CAB location must be licensed by the OCCC |
| Local rules | Many Texas cities, including Austin and Dallas, have adopted ordinances that further limit loan size and renewals |
Rules checked 2026-10-04. Laws change, so confirm current limits with the Texas Office of Consumer Credit Commissioner (OCCC).
What a payday loan costs in Texas
The Center for Responsible Lending found the typical APR on a $400 single-payment payday loan in Texas was 662%, based on data from the state regulator (June 2023). Use our cost calculator to turn any offer into an APR.
Most payday loans are due in one payment on your next payday. If repaying leaves you short again, ask about an extended payment plan and avoid renewals.
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How to check a lender in Texas
- Make sure the lender is licensed by the Texas Office of Consumer Credit Commissioner (OCCC). Many lenders can also be looked up on NMLS Consumer Access.
- Get the APR and finance charge in writing before you sign. Federal law requires them.
- Be careful with online lenders that say Texas law does not apply to them because they are tribal or offshore.
- File complaints with the state regulator and the CFPB.
Cheaper options in Texas
- Credit union payday alternative loans (PALs): $200–$2,000 at no more than 28% APR. Search for a federal credit union in Texas that offers them. See how PALs work.
- Your bank’s small-dollar loan, if it offers one. See bank small-dollar loans.
- Cash advance apps for $20–$500 based on your direct deposits. See apps compared.
- 211: call or text 211 for local help with rent, utilities and food.
Texas cities
Local guides for 1,127 Texas cities and towns, with credit unions, nearby towns and the rules that apply.
- Payday loans in Houston
- Payday loans in San Antonio
- Payday loans in Dallas
- Payday loans in Fort Worth
- Payday loans in Austin
- Payday loans in El Paso
- Payday loans in Arlington
- Payday loans in Corpus Christi
- Payday loans in Plano
- Payday loans in Lubbock
- Payday loans in Laredo
- Payday loans in Irving
- Payday loans in Garland
- Payday loans in Frisco
- Payday loans in McKinney
All 1,127 Texas cities, A to Z
Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.
Request a loanFrequently asked questions
Are payday loans legal in Texas?
Yes. Payday lending is legal in Texas under the Texas Finance Code chapter 393 (Credit Access Businesses) and is regulated by the Texas Office of Consumer Credit Commissioner (OCCC).
What is the typical payday loan APR in Texas?
The Center for Responsible Lending reported a typical APR of 662% on a $400 payday loan in Texas, using state regulator data (June 2023).
Where can I complain about a payday lender in Texas?
Contact the Texas Office of Consumer Credit Commissioner (OCCC) and file a complaint with the Consumer Financial Protection Bureau.