Texas Payday and Title Loans: Rules, Costs, Options

Yes. Payday loans, auto title loans, installment loans and pawn loans are all legal in Texas. The state does not cap the fees on payday and title loans, so the cost depends on the lender's fee schedule and on whether your city has its own limits. Our directory records ordinances on these loans in 46 Texas cities, including Houston, Dallas, San Antonio, El Paso and Fort Worth.

Most payday and title lenders in Texas work as "credit access businesses" (CABs). A CAB arranges a loan from another lender and charges you a fee for that service. That one fact explains why Texas rules look different from other states.

Payday loans in Texas

Texas law calls a payday loan a deferred presentment transaction. The definition does not exclude repayment in more than one installment (Tex. Fin. Code § 393.221(2)). A company that arranges these loans must hold a credit access business license for each location (Tex. Fin. Code § 393.603).

The statute sets no dollar or percentage limit on the CAB fee. A CAB may charge fees as agreed with you, calculated daily, biweekly, monthly or on another basis. It cannot charge a fee that it has not disclosed (Tex. Fin. Code § 393.602(b)).

What the law does require is disclosure:

The CAB must post a fee schedule, the Office of Consumer Credit Commissioner's (OCCC) name, address and helpline, and a short-term-use warning, in the office and on its website (§ 393.222(a)).
Before it provides services, it must give you the interest, fees and APR (annual percentage rate) compared with other credit. It must also show the fees that build up if a loan stays open for two weeks, one month, two months and three months (§ 393.223(a)).
The posted schedule must show three to five of the most common loans, with the fee rate, APR, extra start-up fees, term and any late or returned-payment fees (7 Tex. Admin. Code § 83.6004(a)).

Read that disclosure before you sign. It is the only place that shows the full cost in dollars.

What the OCCC data shows

The OCCC publishes statistics from the CABs it licenses. They show that the typical Texas "payday" loan is no longer a single-payment loan.

In calendar year 2025, 1,208,226 consumers had payday installment loans, against 46,129 with single-payment payday loans.
CAB fees on payday installment loans totaled $1,320,320,349 in 2025. On single-payment payday loans they totaled $32,635,262.
In the second quarter of 2026, the average payday installment loan was $606 and ran 133 days. The average single-payment payday loan was $569 and ran 18 days.
For the same quarter, the OCCC reports an average CAB fee of $163.09 per $100 on payday installment loans and $26.76 per $100 on single-payment payday loans.

Sources: OCCC annual report for 2025 and quarterly report for Q2 2026, linked under Sources.

Title loans in Texas

A Texas auto title loan is a loan secured by a motor vehicle you own free of other liens. Loans that finance buying the vehicle do not count (Tex. Fin. Code § 393.221(3)). The same CAB license (§ 393.603) and the same uncapped-fee rule (§ 393.602(b)) apply.

A CAB arranging a title loan must warn you that if you default, you may be required to surrender the vehicle to the lender or another person (§ 393.223(b)).

OCCC data for the second quarter of 2026:

Single-payment title loans averaged $1,952 and 30 days, with an average CAB fee of $18.90 per $100.
Title installment loans averaged $1,426 and 163 days, with an average CAB fee of $112.01 per $100.
CABs reported 5,998 vehicles repossessed on single-payment title loans and 4,874 on title installment loans. That is 10,872 in one quarter (our addition).

For 2025, the OCCC counted 74,839 consumers with single-payment title loans. It also reports that CABs originated 228,399 refinances of single-payment title loans that year, more than three times the number of consumers. A refinance is a new loan that pays off an old one, and each can carry new fees.

For a general explanation, see our guide to how title loans work. We list 1,086 title loan stores in Texas.

City limits on payday and title loans

Many Texas cities passed "unified" ordinances. Our directory holds 46 of them. Each one we recorded has the same core limits, with city-specific code references (from the Texas Appleseed compilation and the city codes; a city may have changed its ordinance since):

The CAB must register with the city.
A payday loan, with all charges, may be at most 20% of your gross monthly income.
A title loan may be at most the lesser of 3% of your gross annual income or 70% of the vehicle's retail value.
A loan can have at most 4 installments (each at least 25% of principal) or 3 renewals (each cutting the principal by at least 25%).
A new loan within 7 days of the last one counts as a renewal.

A worked example, using those limits: if you earn $2,500 a month before taxes, a payday loan in one of those cities, including all charges, could be at most $500. If you earn $30,000 a year and your car is worth $20,000, the title cap would be the lesser of $900 (3%) and $14,000 (70%), which is $900.

The 46 cities include Houston, Dallas, San Antonio, El Paso, Fort Worth, Austin, Corpus Christi and Arlington. Smaller cities like Amarillo, Waco, Killeen and Longview are on the list too. Check your city's code, because some ordinances have details that differ.

Installment loans in Texas

Licensed consumer finance companies lend under Chapter 342 of the Finance Code. A person needs a Chapter 342 license to make loans under it or to charge more than other law allows (Tex. Fin. Code § 342.051(a)). Unlike CAB fees, these rates are capped:

On the first tier of a regular consumer loan (up to a $300 reference amount, adjusted under Chapter 341), interest is capped at add-on interest of $18 per $100 per year (§ 342.201(a)(1)).
On the second tier (up to a $2,500 reference amount), the cap is $8 per $100 per year (§ 342.201(a)(2)).
On a small loan of more than $100, the acquisition charge is capped at $10 and a monthly handling charge at $4 per $100 of cash advance (§ 342.252(a)(3)). The acquisition charge is not interest and is not refunded.
A small loan over $100 can run one month for each $20 of cash advance, so a $200 advance could run up to 10 months (§ 342.255, our arithmetic).

"Add-on interest" is charged on the original amount for the whole term, not on the shrinking balance. Our guide on how APR works explains why that matters, and installment loans vs. payday loans compares the two. We list 358 installment loan stores in Texas.

Pawn loans in Texas

A pawnshop needs a state license (Tex. Fin. Code § 371.051). A pawn loan is secured by an item you leave with the shop, and you are not required to redeem it or make a payment (§ 371.170). The monthly service charge is capped in tiers: 20% a month on the first tier (up to a $30 reference amount), 15% on the next, 2.5% on the next, and 1% on amounts above that (§ 371.159(c)). Reference amounts are adjusted under Chapter 341.

A pawn loan matures in one month at most, though both sides may agree in writing to extend it (§ 371.160). The shop must hold unredeemed goods for at least 30 days after maturity (§ 371.169). The OCCC's 2025 consumer loan study lists a maximum pawn rate of 240% APR in its first bracket (loans up to $270), falling to 12% APR in its top bracket. We list 1,171 pawn shops in Texas.

How to check a Texas lender's license

The OCCC licenses CABs and consumer finance lenders. Search the OCCC's license search by name or location before you borrow. Each location needs its own CAB license. Our Texas directory shows stores and hours, but the OCCC record is the one that confirms a license. The OCCC's home page is occc.texas.gov.

State rules that can matter

Topic	What the rule says	Law
CAB license	A company arranging payday or title loans needs a credit access business license for each location.	Tex. Fin. Code § 393.603
CAB fees	Fees as agreed and disclosed. The statute sets no dollar or percentage limit.	Tex. Fin. Code § 393.602(b)
Cost disclosure	Before services, the CAB must show interest, fees and APR, and the fees that build up after two weeks, one, two and three months.	Tex. Fin. Code § 393.223(a)
Title loan warning	The CAB must warn you that on default you may have to surrender the vehicle.	Tex. Fin. Code § 393.223(b)
Military borrowers	Loans arranged for service members and dependents must follow the federal Military Lending Act.	Tex. Fin. Code § 393.625
Installment loans	Add-on interest capped at $18 per $100 per year on the first tier and $8 on the second.	Tex. Fin. Code § 342.201(a)
Pawn	Matures in one month unless extended in writing; goods held 30 days after maturity; no duty to redeem.	Tex. Fin. Code §§ 371.160, 371.169, 371.170
City ordinances	46 cities in our data cap payday loans at 20% of monthly income and title loans at the lesser of 3% of annual income or 70% of vehicle value.	Texas Appleseed compilation

From our state rules data, last checked October 9, 2026 (city ordinances: October 7, 2026; check your city's current code). Rules change. Check Texas on the lender directory page.

Where the stores are

We list 2,615 lender locations in Texas across 335 cities, including 913 payday loan stores. The most listings are in Houston (323), San Antonio (170), Dallas (112), El Paso (87), Fort Worth (77), Austin (62) and Corpus Christi (52). These are our listings, not a count of every store in the state.

Of the 1,001 locations where we know the hours, 703 are open Saturday, 147 open Sunday and 515 open late. The brands with the most Texas listings are Cash America Pawn (388), EZPAWN (279), TitleMax (252) and ACE Cash Express (215). Those are counts of locations in our data, not a ranking. Online lenders serving Texas are on our online lenders page.

Options to consider first

These are general options, not recommendations of a particular provider.

Credit union PALs. Federal credit unions can offer Payday Alternative Loans: PALs I of $200 to $1,000 for 1 to 6 months, and PALs II up to $2,000 for 1 to 12 months, with an application fee of $20 at most (12 CFR 701.21(c)(7)). The NCUA says the rate can be up to 28% while its 18% loan ceiling applies, which runs through September 10, 2027.
A payment plan. Ask the biller for more time or a plan before you borrow.
211. Dial 211 or visit 211.org for local help with rent, utilities and food.
The OCCC helpline. Every CAB must post the OCCC's name, address and helpline in its office and on its website (§ 393.222(a)). Use it if you have a question about a lender.

Frequently asked questions

Are payday loans legal in Texas?

Yes. Texas allows payday loans, usually arranged by a licensed credit access business. The business needs a license for each location (Tex. Fin. Code § 393.603).

Is there a limit on payday loan fees in Texas?

Not in state law. The statute sets no dollar or percentage limit on CAB fees, but fees must be disclosed (§ 393.602(b)). Some cities limit the loan size instead, such as 20% of gross monthly income.

How much can I borrow with a title loan in Texas?

State law gives no dollar limit. In the 46 cities in our data, a title loan may be at most the lesser of 3% of your gross annual income or 70% of the vehicle's retail value.

Can I lose my car with a title loan?

The lender must warn you that on default you may have to surrender the vehicle (§ 393.223(b)). The OCCC reported 10,872 vehicles repossessed on title loans in the second quarter of 2026.

Can I roll over a payday loan in Texas?

State law does not cap renewals in our data, and the OCCC counts refinances in its reports. Before you sign, the CAB must show the fees that build up if a loan is renewed (§ 393.223(a)). City ordinances in our data limit loans to 3 renewals, each cutting the principal by at least 25%.

Who do I contact about a Texas lender?

The Office of Consumer Credit Commissioner. Its address and helpline must be posted in every CAB office and on its website (§ 393.222(a)).

Sources

Texas Finance Code ch. 393 (credit services organizations), Texas Legislature, checked October 9, 2026.
Texas Finance Code ch. 342 (consumer loans), checked October 9, 2026.
Texas Finance Code ch. 371 (pawnshops), checked October 9, 2026.
7 Tex. Admin. Code § 83.6004, checked October 9, 2026.
OCCC credit access business annual report, CY2025, checked October 7, 2026.
OCCC credit access business quarterly report, Q2 2026, checked October 7, 2026.
OCCC 2025 study of consumer loan products, checked October 7, 2026.
City ordinances to address payday and auto title loan cycles of debt (Texas Appleseed, 2021), with city codes, checked October 7, 2026.
12 CFR 701.21 (federal credit union loans, PALs), eCFR, checked October 11, 2026.
Permissible Loan Interest Rate Ceiling Extended, NCUA, February 2026.
OCCC license search, checked October 11, 2026.

We are not a lender. This is general information, not legal advice. Rules change; check your state's and city's current rules and the lender's own disclosures before you borrow.

Payday, Title and Installment Loans in Texas: Rules, Costs and Options