Payday Loan 
Title Loan 
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Business Loan What are Installment Loans and How Do They Work?
Installment loans are loans that allow you to borrow a lump sum of money, which you then repay over a set period in regular installments. Unlike payday loans, which are typically due in full on your next payday, installment loans are repaid in equal payments over time.
Here’s how they work:
- You apply for an installment loan online or in-person at a store
- You agree to a set loan amount, interest rate, and repayment term
- You receive the loan funds in a lump sum
- You repay the loan in regular installment payments until it’s paid off
Installment loans can be a good option if you need to borrow a larger sum of money than a payday loan would allow, or you need more time to repay the loan.
Are Installment Loans Legal in Oakland, Texas?
Yes, installment loans are legal and popular in Oakland, Texas. In fact, Texas has some of the most borrower-friendly laws when it comes to installment loans.
Under Texas law, installment loans:
- Cannot have an annual interest rate of more than 10%
- Must be repaid in equal installments over a predetermined period
- May have a prepayment penalty, but it cannot exceed 2.5% of the original loan amount
Benefits of Installment Loans
There are several benefits to choosing an installment loan over other types of loans:
- You can borrow more money than you could with a payday loan
- You have more time to repay the loan
- Installment loans often have lower interest rates than payday loans
- You can improve your credit score by making on-time payments
It’s important to note that installment loans can come with high fees and interest rates if you have poor credit, so be sure to shop around and compare rates before choosing a lender.
Apply Now for an Installment Loan in Oakland, Texas
Ready to apply for an installment loan in Oakland, Texas? TheGuaranteedLoans can help connect you with potential lenders.
Fill out our online application today and we’ll match you with lenders who may be able to offer you the loan you need. Please note that as a connector service, we do not lend money ourselves. We simply facilitate the process of connecting you with potential lenders.
Interesting Facts About Installment Loans in Oakland, Texas
- According to a 2019 study, the average installment loan borrower in Texas has an annual income of approximately $45,000
- Approximately half of all installment loan borrowers in Texas use the loans to cover unexpected expenses or emergencies
- Installment loans have been legal in Texas since 2018, when lawmakers reformed the state’s lending laws
- In 2020, the Texas Office of Consumer Credit Commissioner received over 44,000 complaints related to payday and auto title loans
These statistics highlight the important role that installment loans can play in helping Texans cover unexpected expenses and emergencies, while also underscoring the need for responsible lending practices and borrower education.