Frequently Asked Questions about Car Title Loans

The Basics:

What is a car title loan? Car title loans give borrowers the opportunity to use the title of their automobile as collateral on a cash loan; once the loan is repaid with interest, the lender will return the car’s title to the owner.
Who is eligible to receive a loan? Any vehicle owner over the age of 18 may apply for a car title loan, assuming that it is legal to do so in his or her state of residence.
When is a car eligible for a title loan? Vehicles are not generally considered for title loans until they are paid off; some lenders may be willing to accept cars that are close to being paid off, but this is often decided on a case-by-case basis. Most importantly, a vehicle must be free of judgments and liens.
Where can I get a title loan? Some lenders allow borrowers to apply online, while others invite applicants to visit their physical locations; typically, it’s a combination of the two in order to speed up application period, but an assessment of the vehicle being considered for a title loan is generally a part of the process.
Why would I choose a title loan over another type of loan? There are many reasons to choose a title loan over certain other types of loans. Whether your credit score is a factor or you need a lesser amount of money than other loans would generate, there are plenty of reasons to choose a vehicle title loan.
How do I know if a car title loan is right for me? Determining whether a car title loan is the right choice depends on a variety of factors pertaining to the individual; regardless of the type of loan selected, remember to make sure that its terms are clearly stated and understood before signing the contract.

Qualifying for a Title Loan:

Do I need to be employed? While borrowers must be able to prove that they have income to receive a title loan, they are not required to be employed in the traditional fashion. Those receiving a pension check, SSI or even unemployment payments may be eligible.
Do I need excellent credit to get a title loan? No. Because your car’s title serves as collateral for the loan, applicants with poor or no credit are considered in the same way as those who have higher credit scores. Additionally, applying for a title loan may not impact your credit score in any way.
How large of a loan can I take out? While the maximums for title loans vary between states, lenders and even borrowers, typically the highest limit for loan funds falls around $10,000; of course, this is contingent the value of your vehicle.
Can I take out a title loan without a bank account? Yes, most borrowers can take out a title loan without a bank account. Details on how loans to customers with accounts are handled differ between lenders, but the vast majority of customers applying for a title loan with a lien-free vehicle that they own will be approved.

Repaying Title Loans:

What methods can I use to make loan payments? Borrowers may have several options when it comes to repaying their title loans; while repayment methods differ between lenders, cash, certified checks and money orders are almost universally accepted. Consult with your lender for additional payment options.
When will my car title be returned? Your title will be returned to you after the loan amount, interest and any associated fees are paid in full. Remember that regular, timely payments are a vitally important part of getting your car’s title back.