Title Loans in Texas

Texas is one of the most active states for title lending in the United States. Unlike many other states, Texas has relatively few restrictions on title loan amounts or interest rates, making it important for borrowers to carefully compare offers and understand terms before committing.

How Title Loans Work in Texas

In Texas, title loans are typically structured as "credit access business" (CAB) loans. Under this model, a licensed CAB helps you obtain a loan from a third-party lender and charges a fee for this service. The CAB fee is in addition to the interest charged by the lender.

This structure means that the total cost of a Texas title loan often includes both lender interest and CAB fees, which can result in very high effective APRs. It's essential to understand both components when evaluating offers.

Texas Title Loan Regulations

Title loans in Texas are regulated by the Office of Consumer Credit Commissioner (OCCC). Key regulatory points include:

• CABs must be licensed with the OCCC
• Lenders must provide written disclosures of all fees and terms
• There is no cap on interest rates or fees
• There is no maximum loan amount
• Rollovers and renewals are permitted

Typical Terms in Texas

While terms vary by lender, here's what you can typically expect:

• Loan amounts: $100 to $10,000+ depending on vehicle value
• APR: Often 200% to 500% or higher when CAB fees are included
• Loan terms: Usually 30 days to 6 months
• Loan-to-value: Typically 25% to 50% of vehicle value