With the global economy still reeling from the recession, cash shortfalls have befallen many families. From mortgage payments to overdue credit card payments, the bills keep coming in and the wages are still stagnating. Such challenges necessitate quick cash and the option available is your bank. Unfortunately they need to check your credit score which might not be impressive. The only option at this point is to get a cash advance but because the bank will not take your plea, you can opt for a payday loan. The Texas payday loan has become the solution to most households and if a research by the FDIC Centre for Financial Research in 2010 is anything to go by, the trend is to continue as banks cling to their cash even more.
Payday loans are not new in financial systems. There are many terms used to describe the TX payday loan such as cash advances, cash loans, and payday advance among others. However, the concept is the same as you will receive a loan of $50-$1500 which will be paid during the next payday at an agreed rate. The process of application today has been simplified especially with online Texas payday loans where you fill an application form which is quickly checked and after approval, you will sign some forms before getting the cash deposited into your checking account. The only guarantee according to the Community Financial Services Association of America (CFSA) is proof of employment and the cash is deducted from your account using the Automated Clearing House (ACH) process.
Though TX payday loans are readily available, you might be skeptical about their viability. However, payday loans provide you with the safest option of quick cash when in a dire situation. The other options are shylocks and other pawnshops which eventually lead to loss of property and dignity. In over 37 states, these loans are regulated by the federal Truth in Lending Act (TILA) which dictates that a payday TX payday loan company must disclose the amount of loans and the APR charging fees thus securing you from exorbitant opportunists. In addition the usury laws in most states have a cap on small loans again meaning these transactions are safe than any other quick cash lending options. Moreover, Financial Service Centers of America (FSCA), Online Lenders Alliance (OLA) and The Community and Financial Services Association of America (CFSA) maintain strict guidelines on best practices including disclosure of all requirements and transparency with you.
There are many benefits to be accrued from the Texas payday loan. For starters, there is no collateral needed hence the process is convenient. In addition, the time for an application is short as you just need to sign a few forms before the cash is sent the same day or the next day depending on your bank. In a 2009 staff report by the Federal Bank of New York, the payday loans were found to have improved the welfare of poor families and the researchers recommended their integration into the financial systems instead of passing anti-payday legislation. The most important factor to consider is that your credit score does not count because the company understands the economic situation and hence, your bad credit score is not even confirmed from the credit bureaus.
With so many Texas payday loan companies, you might be befuddled when choosing who to borrow from. Firstly compare as many companies as possible as regards the rates. Additionally, check whether the company offers a flat rate or has other processing fees before committing yourself. The security of your information is also important and this can be confirmed by reading different reviews and also checking the Better Business Bureau (BBB) in your town. The APR rate is also important to compare because different jurisdictions offer varied limits. Finally compare maximum payday loans in TX by reading these reviews when choosing the companies.