When you think of Texas personal loans, what kind of loans do you think of? You’ve got your fast cash payday loans, your unsecured personal lines of credit, auto loans with bad credit, pawn loans and car title loans to name a few. What do these personal loans have in common? They all charge steep interest rates and prey on the people with bad credit or no credit and need money fast.
Since many Texans just like the rest of the country are living paycheck to paycheck and do not have at least $1,000 saved up in case of emergencies, these fast cash, guaranteed loan places are popping up to try and lend their high APR interest rate money to as many people as possible.
They know they will trap low income borrowers into their Texas personal loans and they will be paying 300%, 500%, and even 800% interest with little hope of digging out of this mess. This means that for every $1 dollar you borrow, you will have to pay back $3, $5, or even $8. These loans are made for 2 weeks to 30 days and sometimes up to 5 months. Of course they want to extend the loan repayment term as much as possible.
And if you use a car title loan, you could end up losing your car in the process. That’s why many car title places have you leave them your second set of keys when you apply. They will repossess your car in the event you cannot pay your loan on time. Or pay a fee to roll it over to the next paycheck. The risk of losing your car is too high for the small reward of the fast cash you get.
Plus car title loan places will only lend you 30% to 50% of the true value of your car. Then when they repossess it they will auction it off and get the full value of your car and take the equity you had in it. Does that sound like a fair deal to you?
Think hard about getting a car title loan or any other type of personal loan. They come with high fees and high interest rates.
If you have a poor or bad credit score there are not too many traditional lenders who will approve you for a loan. You could try a local credit union or see if you have some whole life insurance policies you can borrow from. Or a relative who does.
You’re better off paying a 30% credit card penalty APR than you are for most Texas personal loans for people with bad credit. If you must get a personal loan, shop around for the best rates. Most places try to hide their rates and fees in the fine print. Before you apply, ask what the rates and fees are. Compare payday loan rates with car title loan rates.
Get the money, pay off what you need to pay and avoid these predatory lenders in the future.
