Texas payday loans: 5 alternatives

Ben Luthi Written by:
• Updated
•6 min read
Man sitting at kitchen table with laptop, looking up texas payday loansImage: Man sitting at kitchen table with laptop, looking up texas payday loans

In a Nutshell

Texas payday loans are largely unregulated by the state’s government, so there’s no limit to the fees and interest rates lenders can charge unless your local municipality has passed its own rules. If you need money to cover an emergency expense, here are some other options that could help you save on interest or fees.
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If you live in Texas and need emergency cash, you may be considering a payday loan.

The state of Texas doesn’t cap interest and fees on payday loans — though some local municipalities have stepped in to create regulations. That means you may pay a steep price for taking out a payday loan in the Lone Star State.

The average payday loan interest rate in Texas is more than 660% — one of the highest in the country, according to a 2023 analysis by the Center for Responsible Lending. If you borrow $500 at that rate, you’d have to repay about $627 in 14 days to satisfy the debt.

If you need money for an auto repair or other emergency expense, there are several alternatives to payday loans in Texas — and they may have significantly lower interest rates and longer repayment terms, which could help make the debt more manageable.

We’ve rounded up our top choices and highlighted the features we think you’ll find most useful. Keep reading to see if one might be right for your situation.

Figloans: Good for building credit

Why you may want to consider Figloans: Figloans offers an alternative to payday loans in just a handful of states, including Texas. Based in Sugar Land, Texas, Figloans is not a lender itself, but arranges loans provided by other lenders and handles all servicing logistics.

Figloans reports loan payments to the three main credit bureaus, which could help you build credit with on-time payments. That can be a major advantage over a payday loan, since payday lenders don’t typically report your payments to the credit bureaus.

Note that Fig offers two consumer loans: a personal loan and a credit-builder loan. Fig recommends its personal loans for emergency needs. Here are some things to know about Fig’s personal loan, which it refers to as the “Fig Loan.”

  • High rates — While Fig loans have APRs well into the triple digits and are much more expensive than an average personal loan, they still may be significantly cheaper than many Texas payday loans.
  • Loan amounts — The company offers personal loan amounts ranging up to $500 if you’re new to its platform, but says you may be able to borrow more over time or through one of Fig’s partner lenders.
  • Repayment terms — Figloans offers loan repayment terms between four and six months — though loan terms may be extended without additional fees and interest.
  • Eligibility — To be eligible for a Fig loan, you’ll have to meet several criteria, including having a bank account you’ve been using for a while, at least $1,400 in monthly income and a positive bank account balance.

Read our Figloans review to learn more.

OneMain Financial: Good for co-applicants

Why you may want to consider OneMain Financial: OneMain’s highest rates (in the double digits) are much lower than a typical payday loan’s high-triple-digit interest rates. This lender also offers longer repayment terms than a typical payday loan, and it allows co-applicants, which could improve your approval odds or loan terms.

However, OneMain says its origination fee can range from $25 up to $500 — a potentially painful catch to its low rates.

  • Loan amounts — OneMain offers personal loans ranging from $1,500 to $30,000.
  • Origination fee — OneMain Financial charges an origination fee, which may be a flat amount or equal to 1% to 10% of the loan amount, depending on where you live.
  • Prequalification application — Before you apply for a short-term loan like a payday loan, it may make more sense to see if you prequalify for a personal loan from OneMain since checking your potential rate won’t hurt your credit scores. Just remember that if you officially apply, OneMain may perform a hard inquiry, which could lower your credit scores by a few points.

Read OneMain Financial reviews to learn more.

EarnIn: Good for early access to your pay

Why you may want to consider EarnIn: Rather than providing traditional payday loans, EarnIn’s Cash Out feature offers paycheck advances of up to $1,000 per pay period with no credit check, no interest and no mandatory fees. You can borrow little by little — up to $150 a day — up to your pay-period max. The funds are then deducted from your bank account on your next payday.

  • Funding time — You’ll get your Cash Out funds within two business days standard (free) — or you can pay a fee to get your money within minutes.
  • Advance amounts — EarnIn determines your daily and and pay-period maximum Cash Out advances based on your income and account activity.
  • Eligibility — To qualify for EarnIn, you must have a checking account and link that account to a profile you set up in EarnIn. You’ll also need to have a regular pay schedule (such as weekly, biweekly or monthly) with a verified employer, and at least $320 in direct deposits per pay period.

Read our EarnIn app review to learn more.

Personify: Good for long loan terms

Why you may want to consider Personify: Personify says it considers more than your credit history when you apply. Rates and loan terms differ based on where you live, but this lender could be a more appealing option than a payday loan. For example, in Texas, Personify offers loan terms of 12, 18, 24, 36 months or 48 months and loan amounts ranging from $500 to $15,000. (The lender may offer different terms on Credit Karma.)

  • High interest rates — Personify’s APRs can vary widely in Texas. Its lowest starting rates are comparable to OneMain’s upper range, but Personify’s highest rates reach well into the triple digits. Though Personify is still likely a better option than a typical payday loan, you should only take out a Personify loan if you’re confident you can pay it back quickly and on time.
  • Origination fee — Personify charges up to a nearly 6% origination fee in Texas, which is added to your loan amount.
  • Prequalification option — Personify doesn’t disclose its credit criteria, but you can apply for prequalification with a soft credit inquiry to see your estimated rate. Keep in mind that if you want to move forward with an offer, Personify may perform a hard credit inquiry that could affect your credit scores.

Read our Personify Financial review to learn more.

OppLoans: Good for emergency loans

Why you may want to consider OppLoans: OppLoans bills itself as an alternative to payday loans. The company offers personal loans of up to $5,000 for first-time borrowers in Texas, so it may be a good option if you need more than a few hundred dollars to deal with a financial emergency. If approved, your funds could be deposited in your bank account in as little as one business day.

  • High interest rates — OppLoans interest rates are very high — well into the triple digits. But they still might be better than what you’ll find at a typical payday lender, if that’s the alternative you’re considering.  
  • Repayment terms — In Texas, OppLoan’s loan terms typically range from nine to 18 months.

Read our OppLoans review to learn more.

How we picked these alternatives

Getting access to cash for an emergency can be challenging if your credit is less than perfect. This is one of the reasons payday loans might seem attractive, despite their predatory nature.

To come up with other options, we looked for lenders in Texas that position themselves as payday loan alternatives or say they may lend to people with bad credit. When choosing lenders, we focused on factors such as how quickly loans are funded, loan amounts, fees, interest rates, the ability to apply for prequalification, loan terms and lender transparency.

If you need a small loan, you also may want to consider a payday alternative loan, which is offered by certain federal credit unions. The fee to process your application can’t be more than $20, and interest rates are capped. You could also check the APR of any existing credit cards to see if that’s a more affordable option.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.