A direct lender is often the first organization Americans think of when they need fast access to cash, but for those living in Texas, there’s another source of financial assistance. Credit Access Businesses (CABs) are rapidly replacing traditional lenders in Texas due to their quick and convenient lending processes. They offer cash advances that exceed the typical single payday repayment schedule, making them an ideal source of cash when you need a little bit of help covering your financial responsibilities.
A CAB helps you find personal installment loans online by reaching out to unaffiliated third-party lenders in Texas and arranging an advance on your behalf. Once an advance is secured, the CAB takes over all ongoing servicing of the loan to keep things as straightforward as possible. The advance they typically help facilitate don’t exceed $1,000, making them very similar to the average small dollar loan; however, they differ in one significant way: their terms. While the average small dollar loan requires full repayment by the date of your next payday, an installment loan is spread over several pay periods.
They do this chiefly for the client’s benefit. Many people in Texas are wary of short term financial products because of the difficulty they pose in repayment. When most, if not all, of an individual’s paycheck is going towards immediate needs, they won’t have the cash available to cover the advance’s principal, fees, and interest. As a result, many people who take out payday cash advances miss deadlines, roll them over, and accrue significant fines and interest. When there’s more time to repay the installment loan, the cost of its assistance won’t put as much strain on your budget. A smaller portion of each paycheck goes towards its payment, leaving the majority of your earnings to go where you need them.
An installment loan arranged by a CAB offers a more practical solution to your cash flow problems. When you live in Texas, you can ensure your CAB has your financial health in mind by ensuring the lender you’ve chosen meets certain legal criteria. A CAB must have an up-to- date license from the Office of the Consumer Credit Commission. They must also be recognized by the State of Texas as a Credit Services Organization (CSO).
Beyond these official accreditations, a CAB can prove its value by the way it conducts business. All of their communication should involve clear, straightforward language, so you’re never confused about the size, terms, rates, or conditions of their installment loans. Take some time to read up on their products and processes, speaking with a representative whenever you have questions. You’ll learn quickly why a CAB can help you with your immediate cash flow problems.