Universal Questions for ALL Lenders

These questions apply whether you're at a bank, credit union, or online lender in San Antonio.

1. What is the full Annual Percentage Rate (APR)? The APR includes the interest rate plus all fees, giving you the true cost of the loan. This is the single most important number to compare.

2. What are ALL the fees? Ask about:

   • Origination fees

   • Application fees

   • Prepayment penalties (fees for paying off the loan early)

   • Late payment fees

   • Nonsufficient funds (NSF) fees

3. What is the total amount I will have to pay back? This is the principal plus all interest and fees over the full life of the loan.

4. What is the monthly payment amount, and is it fixed? Ensure the payment is fixed (doesn't change) and fits comfortably within your budget.

5. What is the loan term? How many months do you have to repay it?

6. What is the process if I can't make a payment? Do they offer hardship programs, payment extensions, or flexible plans?

7. Is the lender licensed to operate in Texas? You can verify this with the Texas Office of the Consumer Credit Commissioner (OCCC). This is a critical step to avoid loan sharks.

Questions for Specific Loan Types

For Payday / Title / Short-Term Lenders (Use Extreme Caution)

Texas has very few regulations capping fees on these products. You must be extra vigilant.

8. What is the finance charge per $100 borrowed? (e.g., "$20 per $100" on a 14-day loan has an APR of over 500%).

9. What happens if I can't repay on the due date?

   • What are the terms for a renewal or rollover? How many times can I roll it over? (This is how debt spirals begin).

   • Does the lender offer an Extended Payment Plan? Texas law (§393.221) gives you the right to request an interest-free, extended payment plan if you can't repay a payday or auto title loan. ALWAYS ask if this is available.

10. For Title Loans: What is the exact process if I default? How many days late before you repossess my vehicle? What are all the fees associated with repossession?

For Banks & Credit Unions (Recommended First Choice)

11. What are the minimum credit score and income requirements?

12. Do you require a co-signer or collateral? (i.e., is it a secured or unsecured loan?).

13. How long does it take to get funded after approval?

14. Do you report payment history to the credit bureaus? (This can help you build credit if you make on-time payments).

San Antonio-Specific Resources & Advice

• Explore Credit Unions First: San Antonio has excellent credit unions that often offer the best rates and most consumer-friendly terms. Ask them about Payday Alternative Loans (PALs).

  • Examples: Randolph-Brooks Federal Credit Union (RBFCU), Security Service Federal Credit Union, San Antonio Credit Union.

• Non-Propt Assistance: Before taking a high-cost loan, contact organizations like Catholic Charities of San Antonio or SA Hope Center. They may offer emergency assistance, financial counseling, or help with bills, which could eliminate your need to borrow.

• Verify License: Always confirm the lender is licensed with the Texas OCCC. You can check their database online.

Summary: Your Question Checklist

Bring this list with you when you speak to lenders:

For Cost:

• What is the APR?

• What is the total dollar amount I will pay back?

• What are all the fees?

• Is there a prepayment penalty?

For Budgeting:

• What is the monthly payment?

• Is the payment fixed?

For Safety & Terms:

• What is the loan term?

• Are you licensed with the Texas OCCC?

• What happens if I can’t make a payment? (Ask specifically about an Extended Payment Plan for short-term loans)

Next Steps: After getting answers, take the time to compare offers. Don't feel pressured to sign anything on the spot. The best loan is one you can repay without jeopardizing your financial stability.