The typical Payday Loan is a high cost, small dollar loan to be paid back completely in one month to two weeks. These loans are used primarily for utilities, rent, car payments and other such recurring expenses. Borrowers usually obtain payday loans by visiting the store and giving a valid photo identification, access and proof of a bank account along with a proof of employment.

In most payday loans, the borrowers permit the lenders to debit their account electronically for the desired loan amount plus the fee. If the borrower is unable to pay back the loan by the time or rollover the loan (repaying the fee in return of extra time for paying back the loan), the payday loan lender, debit’s the borrower’s account automatically.

Payday loans are quite expensive due to the high fees charged by the lender. In the state of Texas the borrowers are paying a fee of approximately $22 against every $100 borrowed, such high fee results in an APR or annual percentage rate of approximately 574% for a 2 week loan. Since the loan fees is so high, a large number of borrowers are unable to afford the fees and fail to repay the entire principal at once which results in them paying additional fees in order to buy more time. Unfortunately by paying this fee the borrower is unable to reduce the principal amount.


Is it legal to have an Annual Percentage Rates (APRs) of 500%?

Usury Protections placed in the Texas Constitution restricts the lenders from charging an interest rate of 10% and above unless the Texas legislature authorizes a higher rate. Most payday lenders have found a way around this by exploiting a legal loophole. These businesses have a started registering themselves as CABs or Credit Access Businesses under the CSO or Credit Services Organization Act and broker loans between a third party lender and the borrower, while charging the borrower a high fee for guaranteeing and arranging these loans. The third party lenders continue to charge an interest rate of below 10% to avoid prosecution under the Texas Law. The Fee charged by the CAB is completely unregulated and hence the APRs end up above 500%.


An ordinance introduced in the city of San Antonio payday advance in the year 2013 brought the following changes to the payday lending practices:

  • Credit Access Businesses have to annually obtain a valid registration certificate from the City of San Antonio.
  • Payday Loan amounts has been limited to 20% of the borrower’s monthly income.
  • The loans repayment is limited to not more than 4 instalments or 3 renewals or rollovers (a rollover is an extension of the consumer credit made within a week of the previous credit extension)
  • The proceeds from every renewal or instalment must reduce the principal loan amount by 25%.
  • Every contract must be written in a language that the borrower can understand.
  • The lender has to provide the borrower with a form that has been created by the city which references some not for profit agencies providing financial education and some agencies providing cash assistance programs along with general information related to consumer credit extension.

Our lending process is free of any catches and hidden clauses, because we answer all your doubts and explain the lending process explicitly to our buyers. Whether you have hundred questions or one, we make sure that each of them is answered to your utmost satisfaction before and after applying the loan.

Fraud Alert Please be informed about stores pretending to be Payday advance credit. Read more We're a fully licensed company. Getting a safe and easy loan We are a locally owned and fully licensed company operating locally and online. You can learn more about our payday loans and licensing information for lenders here!

Disclaimer : Payday advance credit is not a financial organization or a lender. We do not provide loan or make decisions relating to the lending policy of our lenders. When you apply for a payday loan by filling out the application form available on our site, it does not guarantee approval of the loan. We forward your filled form to our network of lenders, who then evaluate your application based on their set criteria and approves your loan. Based on your application, our lenders will offer you the rate of interest, charges involved and other terms guiding your loan process. Once you get the offer from the lender, you can then decide whether you need to accept the amount or not. Payday advance credit does not play any role in deciding your loan amount, interest charged or any other terms related to it. We advise our clients to read the terms and conditions properly and weigh the pros and cons that follow before signing the contract. We make our earnest effort to provide you with up to date and explicit information on our site. If you decide to accept the offer, then you will have to sign the documents electronically and send it over to us. After you duly sign and agree to the agreement, we will then put forward the amount in your bank. We are in no way obligate you to accept the loan amount after the offer is made. You are solely responsible to accept the loan amount based on your personal decision. Some of our lenders will run a credit check on your name to ensure your capability to repay the loan. The verification won't affect your credit history and is performed by lenders to cover risks associated with lending money. Payday advance credit reserve the right of making any changes on our website without intimating the clients in advance. The updated information is effective from the time it is updated and it is the responsivity of the customer to read them prior to applying for a loan. Payday advance credit or its affiliates do not guarantee availability, performance accuracy and functionality of the third party software working on our website. Any transactions occurring between you and payday advance credit is subjected to local jurisdiction regardless of the place where you reside. Payday advance credit or its affiliates does not guarantee the performance, availability, functionality and accuracy of the third party software present on its website. All the transactions between Payday advance credit and you are subject to the local jurisdiction regardless of the location where you live when you accept a short term loan or advance credit. We advise you to go through rates and fees section on our site to understand the laws and terms that follow your agreement. Our terms of use will help you in gathering more information on the loan process, products and services to understand it thoroughly. Read our privacy policy to understand rules and regulations to understand the collection, use and distribution of personal and non­personal information that's been gathered from customers by Payday advance credit or any affiliates. Privacy Policy