Texas Personal Loans: The consumer comes out ahead in Texas.

Understanding all the confusing fine print in regards to signature loans has just became easier in Texas. Seventh-grade reading level writing for loans under $500 was recently approved by the Finance Commission of Texas for use with signature loans. The use of plain language makes it easier for borrowers to understand a contract’s terms as well as borrower rights and obligations. The Finance Commission approved the model contracts and accompanying rules for loans of $500 or less and within the next 18 months, the Finance Commission will consider plain language versions of consumer installment loan contracts, certain home equity loan contracts, and motor vehicle sales financing contracts. Consumers who enter into plain language contracts are in a much better position to make sound financial decisions according to the Consumer Credit Commissioner. The loans in Texas are now 1,400% more readable. Loan contracts are normally confusing and hard to understand, putting customers at risk of making poor financial choices. Simplifying contracts can have a huge impact: According to a 1996 Ford Motor Credit press release, borrower complaints and questions decreased by half when the company introduced a more plain language version of their auto finance contract. Loans up next for adoption are consumer installment loans of $500 to $12,000.

If you are interested in applying for a loan of $500 or less check out our payday loans section.

Texas Credit NEWS: Nationwide Credit Report says Dallas scores lowest

Dallas residents have the worst credit of the nation’s top 20 cities with an average score of 653 on a scale of 330 to 830. Houston came in next to last at 655, followed by Phoenix, Los Angeles and Atlanta. Dallas has often been known as a boom or bust town, where fortunes are made and lost quickly, but Experian’s study is actually based on credit reports that analyze long-term trends rather than overnight changes. Credit reports summarize a consumer’s available credit, outstanding debt, and payment history. A bankruptcy or unpaid loan can damage a credit report for years. Some blame the credit problems of the residents of Dallas a factor of the dot com bust and high tech fallout, but others say it is people in Dallas are not budgeting their money and are not consolidating debt. If you are a Texas resident and wish to get a higher credit score then lets order you a credit report and help youconsolidate your debt.

In case you are wondering who scored the best average? Minneapolis, at 707. Boston citizens averaged 705, followed by Washington, Seattle and Cleveland.

Apply for a Personal Loan in Texas!

If you are interested in learning more about texas loans then check out our information on Home Equity loans in Texas.

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