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 Northlight standard
- Highest APR
- 35.99%
- Time to repay
- 3 to 36 months
- Amounts
- $100 to $5,000
Example: $1,000 over 12 months at 35.99% APR is 12 payments of $100.46, $1,205.52 in total. Rates and terms
Key points
- 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. Check a lender’s license there before you share bank details; how to tell if a lender is legitimate lists the other checks.
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.
Federal law requires the lender to state the finance charge in dollars and the APR in your agreement. Read both before you sign, and set them beside the example further down this page.
A loan that meets the Northlight standard
Northlight works only with loans that carry an APR of 35.99% or less, fees included, and give you at least 3 months to repay. A single-payment payday loan under Texas law does not meet that standard, whatever its fee, because it falls due in one payment within weeks.
For example, $1,000 repaid over 12 months at 35.99% APR is 12 payments of $100.46, or $1,205.52 in total. The calculator prices other amounts and terms.
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.
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.
What does a payday loan cost in Texas?
State law sets the price rule: No limit on credit access business fees. The lender must give you the finance charge in dollars and the APR in writing before you sign.
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 offer payday loans in Texas?
No. Northlight is not a lender, and the loans we work with must carry an APR of 35.99% or less and run for at least 3 months. Single-payment payday loans do not meet that standard.
See the payment before you apply
Pick an amount and a term. The calculator shows the monthly payment, the total and the cost of credit at the highest APR we allow.
Sources
Keep reading
- UtahPayday loans are legal in Utah. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- TennesseePayday loans are legal in Tennessee. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- 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, who regulates lenders and what a loan costs.
- VirginiaPayday loans are legal in Virginia. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.
- South CarolinaPayday loans are legal in South Carolina. See the loan limits, the rules lenders must follow, where to complain, and how a loan capped at 35.99% APR compares.