Getting a loan online can be quick and convenient, but not all lenders are trustworthy. If you’re looking for online loans texas, it’s important to know how to protect yourself from scams and find a lender you can trust.
Here’s how to tell the difference between real offers and shady ones.
1. Make Sure the Lender is Licensed in Texas
Before applying for any loan, check if the lender is legally allowed to operate in your state. Legit lenders offering online loans texas must be licensed by the Texas Office of Consumer Credit Commissioner (OCCC).
You can also search the lender in the Nationwide Multistate Licensing System (NMLS) to confirm they’re properly registered.
Watch out for: Lenders who can’t show proof of licensing or dodge questions about it. If they’re not licensed in Texas, skip them.
2. Look for Clear Loan Terms
Legit lenders are upfront about the interest rate, loan amount, repayment terms, and fees. If someone is offering online loans texas, this information should be clearly listed on their website before you apply.
You should know:
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What the APR is
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How much you’ll borrow and repay
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What fees, if any, are included
Reputable lenders like Avant and Discover display this info openly. If a lender avoids talking about it or gives vague answers, that’s a red flag.
3. Never Pay Money Upfront
No real lender will ask you to pay a fee before you get your loan. If someone offers you online loans texas and then asks for a “processing fee” or “insurance,” stop right there.
Scammers often ask for payment via gift cards, wire transfers, or crypto — all untraceable. Real lenders deduct any fees (if they charge them) from the loan or include them in the repayment plan.
Bottom line: If you have to pay before receiving the money, it’s a scam.
4. Expect a Credit Check
All real lenders will check your credit before approving you. If a company offering online loans texas promises “guaranteed approval” or “no credit check,” that’s not a good sign.
There are two types of credit checks:
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A soft pull to show estimated rates (doesn’t affect your score)
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A hard pull before final approval (may slightly impact your score)
Scammers avoid credit checks because they don’t care if you can repay — they just want your money.
5. Read Reviews and Research the Company
Before you borrow, search for reviews on Google, Trustpilot, or the Better Business Bureau (BBB). Look for consistent complaints, especially about hidden fees or poor customer service.
Also, check if the company appears in the Consumer Financial Protection Bureau’s complaint database.
If you’re applying for online loans texas, you want to know how other people in the state have been treated by the lender.
Be Careful with Payday and Title Loans
Some lenders advertise online loans texas through payday or title loans. These short-term loans may seem helpful but often come with sky-high interest rates — sometimes over 300% APR.
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Payday loans are due in full on your next paycheck
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Title loans use your car as collateral and can lead to repossession
These loans are legal in Texas but are considered high-risk. Only use them as a last resort and fully understand the risks before borrowing.
What to Do If You’ve Been Scammed
If you shared personal info or sent money to a fake lender, take these steps:
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Contact your bank right away to block transactions
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Go to IdentityTheft.gov to create a recovery plan
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Report the scam to:
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The Federal Trade Commission at ReportFraud.ftc.gov
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The Consumer Financial Protection Bureau
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The Texas Attorney General’s office
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The sooner you act, the better your chances of limiting damage and protecting your identity.
Final Tips
Finding safe and trustworthy online loans texas is possible — you just need to do your homework. Always check licensing, look for transparent terms, avoid upfront fees, and expect a credit check.
If something feels off, trust your gut. It's better to miss out on a deal than fall into a trap.
