Installment Loans in Dallas, Texas

Michael Collins
Jun 03, 2021

Live in Dallas and are in need of money? Getting installment loans Dallas ,TX, could be a solution to your immediate financial needs. However, there is a lot of information you need to know about installment loans in Dallas before you get one. Let’s dive into it! 

What is an Installment Loan?

An installment loan is any loan with two or more scheduled payments to pay off the loan balance. Compared to loans like payday loans where the borrower repays their payday lender in a week or so, an installment loan is paid off over a longer period of time since the repayment is broken up into smaller payments. 

Let’s take a look at an example. Let’s say you get an online installment loan for $1,000 that is to be paid back in over a month. Your online loan will likely be paid back in equal weekly installments along with the interest that you are being charged.  

In this case, you would pay $250 plus interest every week until your loan is paid off. Once you’ve made the four payments of $250, your loan is complete. 

Common Types of Installment Loans

When you think of taking up a new loan, chances are you are thinking of an installment loan.  Most loans are installment loans, likely because they offer borrowers a much easier way to pay off their loans compared to payday loans and their terms.  Some typical installment loans include personal loans, mortgages, auto loans, and many other loans that individuals commonly get. 

Secured vs Unsecured 

Installment loans sometimes referred to as installment credit, are either secured or unsecured loans. Secured loans are loans that require you to put up collateral for the loan. For example, a secured auto loan may require you to put the car you are buying up as collateral for the loan. If you fail to pay back the loan, your car can be legally taken by the lender. 

On the other hand, an unsecured loan is a loan that does not require the borrower to put up collateral for their loan. If the borrower fails to pay back their loan, the loan provider cannot repossess anything of value from you (but they can send collections after you!). 

As you can probably see, secured loans are much riskier for borrowers and are much less risky for lenders. On the other hand, unsecured loans are much safer for borrowers and are much  riskier for lenders. As such, many larger installment loans tend to be secured loans, while smaller installment loans tend to be unsecured loans. 

Loan Terms

The loan agreement and terms on installment loans greatly vary depending on what loan it is. For example, mortgages will be for roughly 15-30 years and will have relatively low interest rates since the loan amounts are usually so gigantic. 

On the other hand, small personal loans can range from a month to a few years and have vastly differing interest rates. Unfortunately, while installment loans are thought to be better than payday loans, some installment loans still have interest rates that are similar to payday loans. These are loans you might want to steer clear of!

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Installment Loans in Texas 

Installment loans in Texas must meet a series of regulations and laws for them to be considered fair and not predatory. For example, larger installment loans cannot have more than a 10% interest charge for a year. 

Much of the legislation in Texas around installment loans comes when installment loans dip into the payday loan category. Installment loans like this are small in amount and are repaid over multiple periods, but carry many of the same gigantic interest rate charges that payday loan lenders charge. 

Here are a few of the rules for these small loans that apply to both Dallas and the rest of the state of Texas: 

  • Small installment loan/payday loans cannot exceed $3,000 in amount
  • No maximum APR
  • Minimum payment is  seven days, and maximum is 180 days 

Good Installment Loans in Dallas, Texas

Because there are so many different types of installment loans, it is difficult to know what kind of installment loan you want and where you are supposed to get it. Let’s dive into some of the best installment loans in Dallas for some of these types of loans. 

Large Installment Loans

Larger installment loans include things like mortgages, auto loans, and things like motorcycle and boat loans. These loans are typically given by large, reputable institutions like banks and credit unions. In Dallas and throughout Texas, the Chase Banks, Wells Fargo, and Bank of America of the banking world often lend out large installment loans. 

However, many of these institutions have strict policies and requirements, and you may struggle to get large installment loans from them if you have a poor credit score. 

If you don’t have the most perfect credit or you aren’t too sure about working with some of the larger banks and credit unions, you might want to go local. Here are some reputable local Dallas banks that could possibly serve your large installment loan needs: 

  • Benchmark Bank: Benchmark Bank has been serving the Dallas area for roughly 50 years. They are a family-owned operation that makes a great effort to know their customers and those in the surrounding area. Benchmark Bank offers mortgages and other personal loans. 
  • City Bank: City Bank is a bank that operates out of Texas and New Mexico and has a branch in Dallas, Texas. City Bank has been around for 80 years and offers a variety of financing products such as car loans, mortgages, and other personal loans of varying sizes. 
  • MidFirst Bank: MidFirst is one of the largest private banks in the country and operates out of Oklahoma but has many branches in Texas, including one in Dallas. Dallas has all the perks of working with a big bank but with the sense of community and connection that a smaller bank offers. MidFrist has won a variety of J.D. Power awards for its excellent banking services. MidFirst offers car loans, mortgages, and personal loans as well. 

Personal Loans

If you're looking for a personal loan of just a few hundred dollars or a few thousand dollars, a credit service organization like many banks and credit unions will not give you the time of day, especially if you have a bad credit score. 

Thankfully, there are bad credit loans and other personal loans from personal loan lenders willing to give customers the cash they need. There are many different types of lenders that offer personal loans, so let’s take a look at some of the best installment loan personal loans in Dallas and the surrounding area: 

  • BB&T: BB&T is a personal loan direct lender that operates out of Dallas, Texas. BB&T has over 19 locations in and around Dallas, so you are sure to find a location that can serve you. Requirements for loans at BB&T might be slightly more strict than other institutions, however.
  • St. Vincent de Paul-Dallas Mini Loan Program: Saint Vincent de Paul is a non-profit organization that offers assistance to individuals all across the country in a variety of ways. One such method is providing financial assistance to those that are in need. Since they are a non-profit, you can be sure that they have your best interests in mind and are unlikely to be a predatory lender like many other lenders are. 

This program from St. Vincent de Paul offers personal loans ranging from $200 - $3,500 and offers them to people with bad credit and people who are being victimized by predatory lending. These loans are typically 12-month fixed interest rates that do not charge very high rates. 

  • Community Loan Center (CLC): The Community Loan Center, or CLC for short, focuses on your employment instead of focusing on your credit. To pay back these loans, the payment is automatically deducted from your paycheck. These loans are low interest, low cost, personal loan installment loans. These loans are often 12-month installment loans, and they are much easier to pay back than many other for-profit companies. CLC has completed over $9 million in loans and operates out of many cities in Texas, including Dallas. 

Best Small Installment Loan in Dallas, Texas: Possible Finance

Here at Possible Finance, we believe that we have the best installment loan product for individuals who need extra money to make it to their next paycheck. Possible sees many of the unfair lending practices in Dallas and around the rest of the country and has made a product that people with bad credit scores can turn to so they can avoid payday loans altogether. 

Our loans are up to $500 in amount and are paid back in over a month. Our application is quick and easy, and if approved, you could have your money deposited in your bank account within a few hours. 

If at any point during your repayment process you are struggling with one of your payments, you can extend your payment up to 29 days right within our app. At Possible, we want to build value for you and help you graduate away from the need for debt, unlike the many predatory lenders that try to keep you in debt as long as possible. 

We do not check your credit history and score when getting one of our loans. We understand that regardless of where you are at in your credit journey, you may still need money to make important purchases. At Possible, we are here to help you. 

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Michael Collins

Michael has a passion for writing and brought that passion to Possible. He enjoys reading everything there is to know about film, sports, and finance. His studies in college have allowed him to be on the forefront of business knowledge so he can better inform his readers.

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