Best Personal Loans in Texas

When you need cash in the Lone Star State, you have several options. Personal loans are one of those options and can cost less than credit cards. Plus, you can repay the money over time at a fixed rate and payment to avoid strain on your budget. 

To decide if a personal loan is right for you, weigh the pros and cons, learn the eligibility requirements, and compare the best lenders. Once you’re approved, you could get cash in your account as soon as the same day. 

Compare personal loan rates

What are personal loans and how do they work?

A personal loan is a type of fixed-rate installment loan that provides a lump sum of cash in amounts ranging from several hundred dollars to $100,000 or more. You apply for a personal loan with an online lender, bank, or credit union, and the lender reviews your financial information to decide whether to approve you and at what rate. If you’re approved, you’ll typically receive the money in your bank account within a few days. 

You can use the cash for almost any household expense — personal loans are most commonly used for debt consolidation, credit card refinancing, home improvements, major purchases, and paying bills or rent. 

To repay the loan, you make equal monthly payments that include interest over several months or years. Some personal loans also include upfront fees that can reduce the amount you receive. Most lenders report your payment activity to the major credit bureaus, which can impact your credit score — positively or negatively — so be sure you can make your monthly payments on time for the duration of the loan’s term before applying. 

How to get a personal loan in Texas

1. Check your credit: Use a free tool to check your credit score and get an idea of which lenders you may be eligible with. Once you know your credit score, you can look at lender minimums to see if you have a chance. Pro tip: Look at the lender cards above to see each lender’s minimum credit score requirement.
2. Research lenders: Check national and local Texas banks and credit unions, as well as online lenders, to find those with eligibility requirements you can likely meet (look at their minimum credit score and minimum income requirements). Once you’ve narrowed the field, look at customer reviews on sites like Trustpilot and the Better Business Bureau. 
3. Prequalify: Prequalify with the lenders that offer it — you’ll typically provide your Social Security number and answer a few questions to get an estimate of the APR, repayment terms, and loan amount you may be approved for. (Prequalification uses a soft credit check, so there’s no credit score hit.) The APR, which accounts for both the interest rate and upfront fees, makes it easy to compare borrowing costs across lenders. 
4. Choose a lender: Pick the option with the lowest APR that has a monthly payment that fits your budget. Consider whether the rate includes a discount for setting up autopay or any other discounts that require action on your part. If you don’t want to set up autopay, for example, your rate could be higher.
5. Formally apply: Proceed with the lender’s formal application and upload any documents the lender requests, such as proof of income. Most lenders perform a hard credit inquiry at this stage, which will appear on your credit report and may cause your credit score to dip temporarily.
6. Sign documents and get your cash: If you’re approved, review the loan agreement for the rate, monthly payment amount, loan term, and fees. With most lenders, you can get the money via electronic transfer within a few days, minus any upfront fees. 
7. Begin repayment: To help avoid missing a payment, consider enrolling in autopay. 

What to consider when comparing personal loans

When comparing personal loans in Texas, pay attention to these features:

• Eligibility requirements: Some personal loans are easier to qualify for than others. If you have fair or bad credit, consider applying at a local Texas credit union or an online lender that offers bad credit loans. Banks tend to have the most stringent requirements. 
• Loan amounts: To avoid borrowing more or less than you need, make sure the lender you choose offers the right loan amount. Keep in mind, the amount you qualify for will depend on your credit score, income, and other factors. 
• APR and fees: The APR indicates the annual cost of the loan as a percentage of the loan amount. It includes upfront fees, such as origination fees or application fees. You should also check whether the lender charges late and/or other fees. Some lenders, like LightStream and Citi, don’t charge any fees.
• Repayment term and monthly payment: Evaluate your budget to find out how much you can devote to repayment each month. Longer terms have higher rates and lower payments, while shorter terms cost less overall but have higher payments. It’s okay to err on the side of caution and choose a longer term — you can make extra payments to save money on interest or pay the loan off early. 
• Total borrowing cost: Make sure to calculate the total interest as well. “Everyone focuses on the monthly payment, which is a trap. You need to look at the total interest you'll pay over the life of the loan,” says William Stern, Founder and CEO at Cardiff, a small business lender. A low monthly payment could cost you more in interest in the long run. 
• Funding time: “The best loan in the world is useless if it arrives too late,” says Stern. If you need an emergency loan, look for lenders that offer same-day or next-day funding. 
• Collateral requirements: Personal loans may be secured or unsecured, and each loan type has its benefits. Unsecured loans often fund more quickly since there’s no collateral to appraise, but rates may be higher since the lender bears more risk. And while rates may be lower on secured loans, you risk losing your collateral if you can’t repay.  A secured personal loan might also be easier to get if you have bad credit. 
• Lender reputation: Before applying, check with the Texas Office of Consumer Credit Commissioner to ensure the lender is licensed. Also, read customer reviews on Trustpilot for red flags. 

Pros and cons of personal loans

Loans for bad credit in Texas

Getting a loan with bad credit in Texas can be a challenge. But there are steps you can take, including applying for a joint loan with a co-applicant or applying with a cosigner. Either can help you get a loan, but the difference is that the co-applicant has access to the loan funds while the cosigner just guarantees the loan. 

You can also take steps to improve your credit before applying. For example, you could pay down your existing debt balances or sign up for a credit improvement tool if you pay your rent on time. If you need the money now, you might consider these bad-credit personal loan alternatives:

• Cash advance app: Cash advance apps offer access to your earned wages ahead of your paycheck. You can usually only borrow a few hundred dollars at a time, and it’s often due within 1 to 2 weeks. But pay attention to express funding fees and other costs, which can add up fast and make your financial situation worse.  
• 401(k) loan: If your 401(k) plan offers loans, you can borrow from your retirement account without a credit check. You shouldn’t choose this option if you think you might leave your job, since the full balance could become due. Make sure to repay the loan to avoid a tax and early withdrawal penalty, and be aware of the impact on your savings goals. 
• Online installment loan: Some online lenders offer bad credit loans with only a soft credit check. These types of personal loans are easier to qualify for and typically carry high APRs — in the triple digits, but still much lower than the average payday loan APR in Texas and some cash apps. Plus, with on-time payments, you may improve your credit score. 

Methodology

To determine the best loans in Texas, Credible evaluated 32 lenders across 1,216 data points. After identifying lenders offering loans in Texas, we considered criteria including interest rates, fees, loan amounts, loan purposes, funding times, customer service, whether secured loans or cosigned loans are available, and more.

We scored lenders based on the following:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%
   

Credible's team of experts gathered information from each lender's website and from our partners directly. We also considered each of our partner lenders' statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it's accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.