Bad Credit Personal Loans in Houston, TX
There may be some basic things that you may want to know if you are thinking of getting a personal loan in Houston, Texas, with bad credit. The good news is that securing a loan (even with bad credit) has become more accessible in recent years. Read this article to learn about:
- What kind of loans are available in Houston, TX?
- What products or services can loans for bad credit be used for?
- How can I apply for a bad credit loan with Bad Credit?
Read on to understand how bad credit personal loan options* work in Houston, TX.
Bad Credit Personal Loan Options in Houston
In Texas, bad credit personal loans are financial solutions offered to potential borrowers on a short-term basis. Bad credit loans are alternative financing options* for those who need immediate access to money but may not have perfect credit scores or little to no credit histories to get loan approval for installment loans through traditional lending institutions.
State laws governing lending practices vary from state to state, and different financing options are available. It’s important to know what loans may be available based on where you live. If you have bad credit, it’s important to compare the advantages and disadvantages of each lending option while also remembering your personal financial needs.
Understanding Texas Loan Types for Bad Credit
Various lending options are allowed by state and federal law for borrowers who have bad credit. Loans available for residents of Texas include personal loans, auto loans, home loans, and payday loans. While some bad credit loans like home and auto have specific requirements for how funds are used, personal and payday loans tend to have fewer restrictions.
Bad Credit Personal Loans
Secured loans involve funds paid directly to a designated merchant for purchase financing. If approved, money may be deposited and available for use as early as the next business day. In addition, funds from unsecured loans are not restricted and may be used for just about any purpose or financial need a borrower may have.
Bad Credit Auto Loans
Two types of bad credit auto loans that are available in Texas are car title loans and auto loans. A car title loan provider may offer near-instant access to cash, often with short-term loans financed over 15 to 30 days. Car title loans can be costly, but car title loans are currently legal as a lending option in Houston, TX.
Many direct lenders also offer traditional auto loans, but it can be challenging to meet the criteria for approval with a low credit score or little to no credit history. In efforts to help customers with bad credit get into vehicles, used car dealerships may offer in-house financing as an alternative to conventional lender approval.
Bad Credit Home Loans
To get approved for a home loan through a conventional mortgage lender, the minimum credit score to apply is typically 620 or above with no recent bankruptcies, foreclosures, judgments, or collections. Applicants who have a credit score of 580 or below may qualify for a loan through the FHA. A VA loan is also another option, but there are specific qualifications needed, such as veteran or active-duty status.
Bad Credit Payday Loans
Like title loans, bad credit payday loans are typically short-term loans borrowed over 15 to 30 days. Payday loans in Texas have few regulations, so be mindful of what terms you may sign up for with a payday loan.
What Products or Services Can a Bad Credit Loan Get You?
Houston residents may be able to use the funds from bad credit loans in various ways.
Many products or services may be financed through a bad credit personal loan.
You might be wondering: Is a lease the same as a loan?
Leases & loans are quite different – here’s what you need to know:
- A loan (or personal loan) is generally a lump sum of funds provided on the recipient’s behalf that is paid back over time (and, like most loans, includes interest.)
- A lease (or lease-to-own option) allows the recipient to possess the leased item for a pre-determined period of time and includes the option to purchase the item outright. It does not include interest but has leasing fees.
Uses for Bad Credit Loans in TX
Bad credit loans may help Texans access funding necessary to obtain products and services. Things like broken appliances, and unexpected expenses can happen at the most inconvenient times, so it’s helpful to know that financing options* even with bad credit, are available.
Products that can be financed with bad credit loans may include (but aren’t necessarily limited to) refrigerators/appliances, air conditioners, mattresses, jewelry, and electronics. Here are some financed products:
Product or Service: Furniture
Average Price**: $400 – $10,000
Product or Service: Mattresses
Average Price**: $250 – $3,000
Product or Service: TVs
Average Price**: $300 – $3,500
Product or Service: Refrigerators
Average Price**: $1,000 – $2,500
Product or Service: Washers and Dryers
Average Price**: $450 – $2,000
Product or Service: Ovens
Average Price**: $500 – $2,500
*Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.
**Retail prices may vary based on extras and the type of product or service you purchase. For example, a simple oven can have a retail price as low as $500, however, a double oven may have a retail price upwards of $2,500.
Houston, TX Bad Credit Loans in Summary
There are not a lot of options available for borrowers trying to apply for a loan from a traditional financial institution or lender with bad credit.
However, with the rise of alternative lenders and other options, for those with less-than-stellar or no credit, there are more options than before. Like most things, it’s best to learn about all the options that may best fit your financial needs as rates and other details vary from one lender type to another.
Interested in applying for a loan on our site? Find a store near you* and apply to see if financing is an option.
*Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.
Houston, TX Bad Credit Loans FAQs
Q: What Kinds of Loans for Bad Credit Can You Get in Houston, TX?
A: Several financial options exist for potential borrowers with bad credit. In Texas, the available loan types are secured and unsecured personal loans, auto loans, home loans, and payday loans.
Q: What’s Considered “Bad Credit”?
A: Borrowers with credit scores of 580 or below may be candidates for bad credit loans, and perhaps an ideal fit for working with alternative lenders. While borrowers with lower credit scores may get turned away from traditional bank loans or financial institutions, the good news is there are other loan sources, such as alternative lenders, available.
Q: Where’s the Best Place to Get a Bad Credit Loan?
A: Depending on your situation and needs, a bad credit loan may be an option for you. The best place to get a bad credit loan is the one that best works for your needs and situation.
Q: How Can I Apply for a Bad Credit Loan?
A: You can be considered for a bad credit loan by simply filling out our online application to apply for a loan. Your credit may be checked, but there are other factors that are taken into consideration.
Q: How Much Money Can I Borrow with a Bad Credit Loan?
A: The amount you qualify for depends on several qualifying factors. Apply online* today to see how much you may be able to qualify for.
*Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.