Payday Loans in Plano, Texas
An OppLoans Guide to Getting The Help (and The Loan) You Need
Needing a helping hand once in a while isn’t something to be ashamed of. We all need help from time to time. Whether you’re struggling with a complicated foreclosure process, substance abuse or maybe just having trouble paying the bills this month, you should know that there are many solutions in Plano.
Borrowing Money in Plano
While social programs and services are great for certain situations, there are still times when it’s better to have cash on hand. For these instances, a cash loan is one solution. But figuring out where to get one, what kind to get and what the drawbacks are can be a taxing process. The guide below can help you figure out what to watch out for when you’re shopping for a personal loan.
Plano Payday Loans
Quick and easy cash isn’t always safe and reliable cash.
Things pile up. That’s just how life is. We’ve all had unexpected bills, emergencies or speeding tickets, and these things are not always easy to deal with. When people are in need of quick cash because of financial distress they can feel pretty vulnerable. This is the feeling that predatory lenders take advantage of with costly and dangerous payday loans.
Payday loans, sometimes referred to as “payday advance loans” or “cash advance loans”, are small-dollar, short-term loans that rely on the borrower to return the money on their next payday. When you take one out you provide the lender with a check for the loan amount, plus extra fees and interest. The borrower will put the date of their next payday on the check, and the lender will cash the check on this day.
The problem is that the additional fees and interest are extremely expensive. Just like with auto title loans, the state of Texas doesn’t have very many laws in place to monitor payday loans. This means your APR could be as high as 457-522% for a loan lasting 19 to 152 days.2 It makes sense then, that many people are unable to pay the loan on the due date. If the borrower can’t afford to pay, the lender will most likely “rollover” the loan. This means extending it and charging you more fees. Many states even ban the practice of rollover, but not Texas. This makes it very easy for borrowers to get stuck adding more and more debt to an already expensive loan.
If you’re considering a payday loan in Plano, just remember that the cost will be about two times as much as any other state.3 If you don’t know for sure that you’ll be able to settle the loan on the due date, you’d be wise to seek out another option. If you already have a costly payday loan, and you have questions or concerns, feel free to contact the Texas Fair Lending Alliance.
Title Loans in Plano
It’s your car! Don’t give it away for fast cash!
Everyone knows the best way to get around Plano is by car. Having a vehicle is a necessity for getting to work, doctor’s appointments or your kid’s science fair. It would be a huge setback to lose your only way of getting around. And while title loans boast “speedy cash” and “emergency funds” they also come with the risk of losing your vehicle. This is why you may want to avoid the dangers of car title loans in Plano.
Auto title loan are notorious for trapping borrowers into long-term debt cycles. The way it works is fairly easy. If you own a car, truck or motorcycle you can get a cash loan when you offer up the title to the vehicle. Once you pay off the loan, you get the title back and you’re out of the woods. Unfortunately it doesn’t always happen like this. If the borrower can’t pay off the loan, the lender will repossess the vehicle to make their money back. And what’s the point of having a parking spot at work if there’s nothing to park?
If you know you can afford to pay off the loan on the due date, then you can probably avoid losing your car. But why spend so much money to borrow? The reason a lot of people end up having their vehicles repossessed is because of how expensive it is to take out title loans in El Paso. Texas is one of the few states that has very little regulations to keep these predatory loans in check. The average APR for title loans in Texas is between 243-289% for a typical loan lasting 30-191 days.2 So even if you can pay it off on time and avoid losing your vehicle, you’ve just paid much more than you borrowed in the first place.
There are however many safe options for getting emergency cash in Plano. You just need to be willing to shop around, and do your research. Avoid loans that are predatory, as they may solve a short-term problem while creating long-term debt.
Pawn Shop Loans in Plano
Your valuable items are just that, valuable. Don’t give them away.
Pawn shops are host to a plethora of interesting items. From jewelry to appliances, to that Blu-ray player that grandpa sold because he couldn’t figure it out. There’s never a shortage of fun things to see and buy at a pawn shop. But be careful, because pawn shops also offer high-interest, short-term loans that may lead to your items being on the selling room floor.
If you’re in a bind you may have considered “pawning” a valuable item. This means handing it over to the pawn shop and getting a small cash loan. The amount they give you will be based on how much your item is worth, though they usually only offer a fraction of the value. This means these loans are usually for small amounts. They also come with high interest rates and additional charges.
The APR for a pawn shop loan in Plano can be as high as 240%, and the maximum loan term is only 30 days.4 The high rates and short term can make it difficult to pay off. And if you can’t pay it off, they will sell your item.
There are much more affordable ways to get the money you need in Plano. If you have questions about pawn shop regulations, feel free to call the Consumer Helpline of the Texas Office of Consumer Credit Commissioner at (800) 538-1579.
Texas Subprime Reports
- “Plano, Texas (TX) Poverty Rate Data” City-Data.com. 2013. Accessed February 12, 2016. https://www.city-data.com/poverty/poverty-Plano-Texas.html
- “Pulling Back the Curtain: Shining A Light on Payday and Auto Title Loan Businesses in Texas.” Texas Appleseed. Accessed February 9, 2016. https://www.texasappleseed.org/sites/default/
- “FAQs” Texas Fair Lending Alliance. Accessed February 9, 2016. https://www.texasfairlending.org/resources/faqs/
- “Texas Pawnshop Rate Chart – July 1, 2015 to June 30, 2016 Only.” Texas Office of Consumer Credit Commissioner. Accessed February 9, 2016. https://occc.texas.gov/sites/default/files/uploads/interest/p-rate-16.pdf [PDF]
*OppLoans is not affiliated with any of the programs, services or organizations referenced on this page.