Texas had the first fully digital plate option—but if you want old-school cool, you can still get the 1960s 'Lone Star' version!
Key Points
Texas title loans allow borrowers to use their vehicle’s title as collateral to access fast cash, often providing funds on the same day.2
Continue to drive your car during the duration of your loan, giving you access to continue your daily activities.
Repayment terms typically range from 15 to 30 days with option to extend. However, if the loan is not repaid on time, the lender has the right to repossess your vehicle.4
While title loans offer quick financial relief, they come with high interest rates and the risk of accumulating debt. These loans are best used in emergencies.4
A Texas title loan is a short-term, secured loan that allows you to borrow money using your car's equity as collateral. The loan amount you can borrow is typically based on your car’s equity, and you may qualify for a loan of up to $50,000, depending on your vehicle’s market value. Generally, title loan amounts range from 25% to 50% of your car's value. Once approved, the lender places a lien on your vehicle's title, meaning they have a legal claim to your car until the loan is fully repaid.
The best part of a title loan is that, even though the lender holds the title, you can continue driving your car throughout the loan term. Whether you're commuting to work, running errands, or carrying out your daily activities, your vehicle remains fully operational as long as you stay current on your loan payments.
Repayment terms are typically short, and the loan is designed to be paid off in full within a few weeks to a couple of months. As long as you keep up with your monthly payments, you can continue using your car. If you repay the loan on time, the lien is removed, and you regain full ownership of your vehicle.
Texas title loans are a quick and accessible option, especially for those who may struggle to secure traditional loans due to credit challenges. However, they come with high interest rates, so it’s essential to borrow only what you need and ensure you can meet your repayment obligations to avoid the risk of losing your car.
Is a Title Loan Right for you?
Title loans are an excellent option for those in need of quick cash, especially if you have bad credit or no credit at all.1 They can also be a great alternative for individuals who don't get approved for traditional loans. However, it's important to remember that title loans come with risks, such as high interest rates and the possibility of losing your car if you fail to repay the loan.
We recommend borrowing only what you truly need to avoid accumulating excessive interest and to reduce the risk of financial strain.4 While title loans provide fast access to funds, it's essential to carefully consider your ability to repay and fully understand the terms before proceeding.
Benefits of Title Loans in Texas
Same day fast cash when you need it most2
Keep driving your car while you repay the loan
Great approval odds even with bad credit1
Flexible repayment terms
How to Get a Title Loan in Texas?
To apply for a Texas title loan, you’ll need to provide the following:
A valid driver’s license or government-issued ID
Proof of income, such as a pay stub or W-2 form1
Vehicle information, including the make, model, year, mileage, and VIN
A clear title for your vehicle (must be in your name with no liens)
Texas customers can start the title loan process online. This online form typically requires basic information about you and your vehicle. Once you submit the form, the lender will review it and may contact you for additional documents or information. If approved, you can receive your loan amount quickly, often within the same day.2
Submit Loan Request Over the Phone
Alternatively, you can start the process for a title loan over the phone. This process involves speaking directly with a loan representative who will guide you through the application steps.
You’ll provide the necessary information about your vehicle and personal details, and the following representative will present you with the next steps.
Title Loan, Payday Loan, or Signature Installment Loan
Do I Need Good Credit to be Approved for a Title Loan?
No! You don’t need good credit for a title loan. With this type of secured loan the approval is based on your car’s value and your ability to repay the loan. If you own a car and have a steady income, you're likely eligible. This makes title loans a good option for people with poor credit.1
Repayment of an Online Title Loan
The repayment period for a Texas title loan typically ranges from 15 to 30 days, depending on the lender. In some cases, you may be able to extend the loan beyond 30 days, with the maximum repayment term reaching up to 180 days.
If you miss a payment, the lender may repossess your car. It’s important to stay in touch with the lender and contact them to discuss options if you’re struggling to make the payment. Failing to make timely payments can lead to significant financial consequences4, including late fees and increased debt.
Repossession
Repossession occurs when you fail to repay a loan, and the lender takes back your vehicle to recover the money you owe. In the case of a Texas title loan, if you don't meet the repayment terms, the lender has the legal right to repossess your car. This happens after the loan becomes delinquent, typically after missed payments.
Most title loan companies prefer to avoid repossession due to the associated costs and would rather have borrowers continue making payments. However, if repossession becomes unavoidable, it can significantly impact your daily life and credit score.4
Credit Report
A repossession can negatively impact your credit score. It can affect your future borrowing ability making it harder for you to secure loans. A repossession is recorded as a derogatory mark on your credit report and can remain there for several years.
Lender Tip: Always confirm with the lender whether they report your payments to the credit bureaus, especially if you’re concerned about building or maintaining your credit. Not all lenders report.1
Title loans in Texas offer same-day funding, providing rapid financial relief for those facing emergencies.2 One of the key benefits is that you can keep your vehicle during the loan term, allowing you to continue your daily activities without interruption. The amount you can borrow depends on the value of your vehicle, and you may be able to access funds ranging from $500 to $50,000 based on your car’s equity.
While these loans are accessible with minimal documentation, it's important to consider the high interest rates and the potential risks involved, such as repossession, if payments are missed.4 Title loans can be a helpful option in urgent situations, but understanding the costs and terms is essential to making an informed decision.
The amount you can receive through a title loan in Texas largely depends on the value of your vehicle and your income. Typically, lenders will offer up to 70% of your car's appraised value. However, the loan amount is also capped at 3% of your annual income. This ensures that borrowers do not take on more debt than they can handle.1
Can I Get an Online Title Loan If the Car Title is Not in My Name?
If the title isn’t in your name, you may still qualify for a loan by transferring the title or obtaining a replacement copy. If a vehicle title has multiple names listed with ‘and’ between them, all parties must agree to the title loan, whereas ‘or’ allows any one person to use the vehicle as collateral.
Is it Smart to Use your Car As Collateral for a Loan?
Using a car as collateral can be beneficial for Texas customers due to potentially lower interest rates compared to unsecured loans. However, car title loans are generally associated with higher risks4, as they come with shorter repayment periods and elevated interest rates compared to auto equity loans.
What if I Change my Mind and Decide to Cancel My Car Title Loan?
Borrowers in Texas usually have the right to cancel their loan within three days of approval without penalty3. If you want to cancel, you may have a short period to do so. Check with the lender for the exact terms.
If Approved for a Car Title Loan, When Will I Receive My Funds?
Once approved for a car title loan, you can typically receive your funds the same business day.2 In some cases, if all loan documents are submitted and approved quickly; you can get the funds a few hours from when you start the car title loan process.
Bryan Solis brings over a decade of expertise in the lending industry, specializing in auto finance, personal loans, and car title loans, with experience in both prime and subprime lending. Leveraging his academic foundation in Business Administration, he has played a role in in the growth of start-ups as well as driving sustained success in established organizations. Currently serving as Head of Sales at 5 Star Loans, he has demonstrated exceptional skills in operational leadership and client relationship management, contributing to the company’s success.
