Payday loans in Texas
Payday loans are legal in Texas, and state law does not cap the fees a lender may charge, so prices vary widely from one lender to the next. Every figure on this page was checked against Texas law on November 10, 2026.
- Status
- Legal
Texas payday loan rules at a glance
- Legal status
- Legal
- Maximum loan
- Not set by state law
- Loan term
- (7 to 180 days)
- Maximum fee
- No limit on credit access business fees
Checked against Texas law on November 10, 2026.
The short version
- Payday loans are legal in Texas and lenders must hold a state license.
- Price rule: No limit on credit access business fees.
- Texas Office of Consumer Credit Commissioner handles licensing questions and complaints.
On this page
Are payday loans legal in Texas?
Payday loans are legal in Texas, and state law does not cap the fees a lender may charge, so prices vary widely from one lender to the next.
The governing law is Tex. Fin. Code ch. 393 (credit access businesses); ch. 342. Texas Office of Consumer Credit Commissioner licenses lenders and takes complaints.
Loan limits in Texas
- Loan size: Not set by state law
- Loan term: 7 to 180 days
What a payday loan costs in Texas
State law sets the price rule: No limit on credit access business fees.
Because the price is not a simple per-$100 fee, ask the lender for the total finance charge and the APR in writing before you agree. Federal law requires both numbers on your loan agreement.
Before you deal with an online lender
- Look the company up with Texas Office of Consumer Credit Commissioner. No license, no loan.
- Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
- Read the agreement for the finance charge, the APR and the due date before you give out bank details.
If you cannot repay a loan in Texas
Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with Texas Office of Consumer Credit Commissioner and with the CFPB. Our guide to what happens if you don’t pay covers each step.
Lower-cost options in Texas
- Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
- A payment plan with the landlord, utility or hospital you owe often costs nothing.
- Local assistance: dial 211 for rent, utility and food programs near you.
See all payday loan alternatives or work out a loan’s price with the cost calculator.
Good to know
More than 45 Texas cities, including Dallas, Austin, San Antonio and Houston, have ordinances that limit loan size and renewals.
Free help in Texas
- 211Free, confidential referrals to local help with rent, utilities and food. Call 211.
- USA.gov: help paying billsGovernment programs for rent, energy, phone and medical bills.
- National Foundation for Credit CounselingNonprofit credit counselors who can set up a debt management plan. Call 800-388-2227.
- CFPB complaint portalFile a federal complaint about a lender or a debt collector.
Common questions
Are payday loans legal in Texas?
Yes. Payday loans are legal in Texas under Tex. Fin. Code ch. 393 (credit access businesses); ch. 342, and lenders need a state license.
Can I be arrested for not repaying a payday loan in Texas?
No. Not paying a loan is a civil matter, not a crime. A lender can still sue you in civil court, so never ignore a court summons.
Where do I complain about a lender in Texas?
Contact Texas Office of Consumer Credit Commissioner. You can also file a complaint with the Consumer Financial Protection Bureau.
Does Northlight lend money?
No. Northlight is an information site. We explain the rules and the costs; we do not make loans or credit decisions.
Sources
Keep reading
- UtahPayday loans are legal in Utah. See the loan limits, the rules lenders must follow and where to complain. Checked against state law in November 2026.
- TennesseePayday loans are legal in Tennessee. A $100 two-week loan can cost up to $15 (391% APR). See the loan limits, the rules lenders must follow and where to complai
- VermontPayday loans are not legal in Vermont. Learn what the law says, why online offers are risky and which lower-cost options you can use instead.
- South DakotaSouth Dakota caps small loans at 36% APR, so high-cost payday loans are not offered. See what is allowed, what it costs and the alternatives.
- VirginiaPayday loans are legal in Virginia. See the loan limits, the rules lenders must follow and where to complain. Checked against state law in November 2026.
- South CarolinaPayday loans are legal in South Carolina. A $100 two-week loan can cost up to $15 (391% APR). See the loan limits, the rules lenders must follow and where to co