Plenty of Americans find small dollar loans as the quick and simple solution to cash shortages, but for many Texans, they’re not the financially responsible option. Though sub-contractors, salespeople with commission, and small business owners have a steady income, the amount on their paycheck can fluctuate from month to month. The short terms of the average small dollar loan aren’t always attainable when their repayment lands on the date of a smaller paycheck. For those who find repaying a small dollar loan all in one go impossible, there’s a practical alternative: installment loans.
These financial products have longer terms than the typical small dollar loan. That means you can pay off your debt in smaller portions over a longer period of time. The exact terms of your loan will depend upon your pay schedule and the direct lender’s procedures. A direct lender for installment loans is also a CAB or Credit Access Business. This means they’ve received the appropriate license from the state to secure loans on your behalf.
Unlike most direct lenders, which issue and facilitate loans to their customers directly, a Texan CAB works with third-party lenders in the state to secure financial products. They communicate with this lender on your behalf, so you never have to go between multiple companies to learn about your loan and potentially getting conflicting information. A CAB will take over all servicing of the installment loan, so you only have one point of contact from the start of your application to the repayment of your loan.
To see if these terms work with your pay schedule, search out a direct lender in the state of Texas that is also a licensed CAB. Skip over those that don’t have a certificate issued by the Office of Consumer Credit Commissioner. This accreditation ensures their products and practices promise responsible lending options. They should also be a certified Credit Services Organization (or CSO, for short), which is another mark of a reputable lender.
These licenses should be easy to find on their website, as will any information relating to installment loans. Take the time to read up on the rates, terms, and conditions of the CABs available in your state. It’s worth expending the effort at this stage of your borrowing than to find out halfway through the term you can’t make your payments. Once you find a lender that provides a practical solution for your situation, you can finally feel good about the loan you get.