Key Takeaways
- Borrow up to $50,000 using your car’s title.1
- Approval doesn’t require good credit.1
- Start the process online and get cash the same business day.2
- Keep your vehicle while you repay1.
- High APRs and fees apply read terms carefully.4
Introduction to Title Loans
When money’s tight and options are limited, title loans offer a fast way to get fast cash by using your vehicle’s title.2 Title loans are a convenient way to access funds and take care of any expenses you may have. If you need emergency funds and traditional loans aren’t an option, title loan could be the solution and we’re here to help.
What Is a Title Loan?
A car title loan is a short-term loan that uses your vehicle’s title as collateral. A title loan is a secured loan, in which the lender places a lien on the vehicle and allows you to borrow money. It’s a quick solution if you need funds and don’t qualify for traditional loans.1 The loan amount depends on the value of your vehicle and your ability to repay.
You’ll hand over your vehicle’s title, but you can continue driving your car while making payments. Once the loan is paid in full, you get your title back. Many people turn to online title loans because they’re fast, don’t require great credit, and let you keep driving your vehicle during repayment.
Understanding Car Title Loans
Auto title loans are secured loans using your car’s title as security. If you don’t repay the loan, it can result in a repossession and you may end up losing your vehicle. These loans often have higher interest rates and fees than regular bank loans. Always check the loan amount, interest rate, and repayment terms before applying to avoid money problems. Many lenders give flexible repayment options, but always choose one with clear fees and fair rates. Know the total cost, before agreeing to any terms.
How Online Title Loans Work
- Start Online – Fill out a quick form with your vehicle details and personal information.
- Get Pre-Approved – See your loan amount, rate, and term.
- Submit Documents – Upload a photo ID, proof of income, and your title.
- Vehicle Inspection – Send pictures or schedule an in-person check.
- Receive Funds – Once approved, get money via direct deposit or check, often within 24 hours.2
Who Can Benefit from Car Title Loans?
Car title loans are ideal for those who:
- Need emergency funds quickly.
- Have bad credit or limited borrowing options.
- Own a paid-off vehicle or one with sufficient equity.
These loans work well for people facing short-term financial hurdles like medical bills, home repairs, or overdue rent.
Title Loan Features to Know
| Feature | Details |
| Loan Amount | $500 – $50,000 |
| Loan Term | 2 to 4 years |
| APR | Up to 150%1 4 |
| Origination Fee | Up to 10% |
| Credit Type | No credit or bad credit OK! |
Disclaimer: Interest rates, eligibility, and loan amounts vary by lender and state regulations. Always review terms carefully before committing.
Vehicle Types Accepted as Collateral
- Car Title Loans – Standard loans secured by a car title.
- Motorcycle Title Loans – Use your motorcycle title to access fast cash.
- Truck Title Loans – Especially useful for business or heavy-use trucks.
- RV Title Loans – Use your recreational vehicle without giving up travel.
- Boat Title Loans – Leverage your boat’s equity.
- ATV Title Loans – Available in select locations.
Example Auto Title Loan Scenarios
| Detail | 2012 Ford F-Series | 2012 Ford RV |
| Vehicle Value | $7,245 | $19,845 |
| Loan Amount | $500 | $8,000 |
| Loan Term | 24 months | 36 months |
| APR | 67.47% | 81.56% |
| Monthly Payment | $38.87 | $502.87 |
Lender Tip: Use our car title loan calculator to know approximate terms on the loan before you get started.
State Availability & Regulations
Not all states allow title loans and laws vary by location. Some states cap interest rates or ban them altogether. Always use a licensed lender and verify terms.
Common States for Online Title Loans:
How to Get Your Funds
- Direct Deposit – Fastest and most common.
- MoneyGram– Pick up cash at a local MoneyGram.
- Debit or Prepaid Card – Available at select lenders.
- Check – Receive a check directly at a participating location.
Alternatives to Title Loans
If you’re unsure about a title loan, consider:
- Personal Loans – Better if you have fair credit.
- Payday Loans – Shorter terms, but very high APRs.
- Pawnshop Loans – Use valuables instead of your car.
- Credit Union PALSs – Small-dollar loans with lower risk.
- Peer-to-Peer Loans – Online platforms that match borrowers with investors.
What Is a Payday Loan?
A payday loan is a short-term loan meant to cover expenses until your next paycheck. It usually has a small loan amount—typically between $100 and $1,000—with a due date within two to four weeks. These loans are easy to get but come with extremely high interest rates, often 300% or more APR.
Title Loans vs. Payday Loans
| Feature | Title Loans | Payday Loans |
| Collateral | Vehicle title | None |
| Loan Amount | $500 – $50,000 | $100 – $1,000 |
| Repayment Term | 2 – 48 months | 2 – 4 weeks |
| APR | Up to 150% | 300% – 600%+ |
| Risk | Vehicle repossession | Bank account overdraft/rollover |
Credit Score and Loan Eligibility
Your credit score can affect if you qualify for a loan and the interest rate you get. A good credit score can help you get lower rates and better terms. Many title loan lenders give loans to people with bad credit, but expect higher fees.
Income
Lenders will ask for proof of steady income to ensure you can repay the loan. This may include pay stubs, government benefits, or self-employment records.
Vehicle
Your vehicle is your collateral, so its value is key. Lenders consider make, model, mileage, condition, and current market value. A newer or well-maintained vehicle can qualify for higher loan amounts.
Things to Consider
High Fees Associated with Title Loans
Title loans can have many fees, such as finance charges, interest, and other extra costs. These fees can add up fast, making it hard to pay back the loan. Some lenders charge processing fees, late payment fees, or non sufficient funds (NSF) fees. Review the loan agreement carefully and understand all fees before you agree.
Avoiding Scams and Predatory Lenders
To stay safe, research lenders well. Read reviews from other customers. Be careful of lenders with very high fees or those asking for money upfront. Pick lenders with clear fees and fair rates. If you see suspicious activity, report it to the Federal Trade Commission (FTC) or your state’s attorney general.
Risks of Online Title Loans
- High Interest – APRs can exceed 100%.
- Repossession – Missed payments may lead to losing your vehicle.
- Credit Damage – Late payments can be reported.
Summary
We offer fast access to cash without requiring good credit.1 If you’re in a financial emergency and own a vehicle with equity, a title loan could help bridge the gap. Just be sure to borrow responsibly, read all the terms, and understand the repayment schedule. And whenever possible, consider safer, lower-cost alternatives first.
Frequently Asked Questions (FAQs)
What is Better Than a Title Loan?
If you qualify, personal loans from credit unions or online lenders often have lower rates and longer terms. Other alternatives include credit builder loans, peer-to-peer loans, or borrowing from friends or family with a repayment plan.
Do I Get a Copy of the Contract?
Yes, reputable lenders must provide a copy of the loan agreement, either electronically or in print. Always read it carefully and keep a copy for your records.
Can I get a Title Loan If I Don’t Own My Car Outright?
Yes, it may be possible. While most lenders prefer a clear title with no liens, some may approve you if you have significant equity in your vehicle. Equity is the difference between your car’s value and what you still owe. Lenders that accept this model will assess your loan based on that equity.
What Credit Score is Needed for a Car Title Loan?
Most car title loan lenders don’t have a specific credit score requirement. The title loan is secured by your vehicle so it allows the lender to work with all credit types.
What If You Can’t Repay?
If you fall behind:
- Contact your lender immediately.
- Ask for payment extensions or refinancing.
- Avoid ignoring the loan, repossession is a real risk.
Written by
Bryan Solis
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.
