Many of the short-term loans in Texas are regulated by the Texas Office of Consumer Credit Commissioner (OCCC). If your lender is not regulated by the OCCC, you can contact the Texas Department of Banking and they can redirect you to the regulator. It is important that you apply for a loan from a regulated lender because you are sharing your personal information with them when you submit the loan application.
Many scam loans are issued by unregulated lenders. Usually, scam loans will ask for a lot of fees that are illegal and should not be charged such as an advanced fee. After they collect the fee, they will disappear and not release the funds to you. Scam lenders often ask the borrowers to wire transfer money to them. Many scam lenders make a little change to the name of the legitimate lenders or banks to make people think that they represent the same legitimate lender.
Unregulated lenders often target at people who have poor credit score. People with poor credit score are desperate to get loans and they would look to unregulated lenders when they cannot get approved for a loan from the bank. As a rule of thumb, you should avoid loans that have lending terms that are too good to be true. If you have poor credit score and urgently need a loan, you should call the National Foundation for Credit Counseling and get help from them.
Prior to getting a loan, you should ask your friends and family members to provide references. If you are interested in applying for a loan from a lender, you should first call the Better Business Bureau (BBB) and make inquiries on what types of complaints it has in the past. If the lender is legitimate, you can start reviewing the features of the loans such as interest rate, loan term, monthly payment amount, and fees.
You can visit the online loans comparison site to compare the interest rates. Besides the interest rates, you should also find out about other costs of the loan such as closing fees, and commissions. You can use a loan calculator to calculate the costs of various loans you are considering and decide for yourself which one is the best offer. Many online lenders allow you to get pre-approved.
A regulated lender will always provide clear disclosure of the lending terms of their loan products. If it does not disclose the lending terms, you should not apply for your loan from the lender. Before applying for the loan, make sure you read the fine print and understand all the terms. If you have any question, make sure you ask your lender to explain before proceeding in putting down your signature on the loan agreement.