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Are title loans legal in Texas?

By Lenditup Editorial Team · Law last verified · How we verify

Yes. Title loans are legal in Texas, and lenders must follow the Texas Finance Code Chapter 393.

Title loan rules in Texas at a glance

Title loan rules in Texas
Title-loan lawTexas Finance Code Chapter 393
Rate capNo statutory cap on the credit access business fee — set by the loan agreement
Loan termUp to 6 months
Rollovers and renewalsNo statutory refinance limit in Tex. Fin. Code ch. 393; refinancing is allowed but its added cost must be disclosed (§§ 393.222, 393.223)
RepossessionAllowed after default
Owe the balance after the car is sold?Yes, the lender may collect what the sale did not cover. Check the statute for any minimum balance
Lender licenseRequired (Texas Office of Consumer Credit Commissioner (OCCC))
StatuteTex. Fin. Code §§ 393.201, 393.221-393.222, 393.601-393.627 (credit access businesses)

Source: Tex. Fin. Code §§ 393.201, 393.221-393.222, 393.601-393.627 (credit access businesses) (read the law). We last checked it against the statute on June 9, 2026. See title loan laws in every state.

What a title loan costs in Texas

Rate rule in Texas: No statutory cap on the credit access business fee — set by the loan agreement. We don't show a worked example for Texas because the law doesn't fix one price. Compare the APR and the total you will repay in each lender's written disclosure before you sign.

What happens if you can't repay

If you fall behind, the lender can repossess your car. Read the default and notice terms in your contract before you sign. If the car is sold for less than you owe, the lender may be able to collect the difference. Some states allow this only when the unpaid balance is above a set amount, so check the statute or ask the lender.

If you think you will miss a payment, call the lender before the due date and ask what options it offers.

How to check a lender in Texas

Title lenders in Texas must be licensed (Texas Office of Consumer Credit Commissioner (OCCC)). Search for the lender on the official license lookup before you sign. Lenditup does not check lender licenses for you (see how we verify).

Looking for a loan in Texas?

A title loan puts your car at risk, so compare it with a personal installment loan first. If a title loan is still the right fit, you can send one request and see what lenders and lending marketplaces in our network offer.

Start a title loan request

Lenditup is not a lender. Sending a request does not mean you will be approved; each lender sets its own rates and terms within Texas law.

Title loan questions for Texas

01What is the most a title lender can charge in Texas?
No statutory cap on the credit access business fee — set by the loan agreement. Your contract must show the APR before you sign.
02How long is a title loan in Texas?
Up to 6 months, under Texas law.
03Can I roll over a title loan in Texas?
No statutory refinance limit in Tex. Fin. Code ch. 393; refinancing is allowed but its added cost must be disclosed (§§ 393.222, 393.223). Each renewal adds cost, so ask for the total you will repay.
04What happens if I can't repay a title loan in Texas?
If you fall behind, the lender can repossess your car. Read the default and notice terms in your contract before you sign. If the car is sold for less than you owe, the lender may be able to collect the difference. Some states allow this only when the unpaid balance is above a set amount, so check the statute or ask the lender.
05How do I check that a title lender is licensed in Texas?
Title lenders in Texas must be licensed (Texas Office of Consumer Credit Commissioner (OCCC)). You can look a lender up in the official license search.
06Is Lenditup a title lender in Texas?
No. Lenditup is not a lender. We connect you with lenders and lending marketplaces in our network, and the lender you choose sets your rate and terms within Texas law.

Title loan laws in other states

Compare every state side by side on the state title loan law table, or read how title loans work and what lenders ask for. Payday loans follow a different law: see payday loan rules in Texas.