To qualify for a car title loan, you must be at least 18 years old, have a vehicle with a title in your name, and show the ability to repay the loan.
A car title loan is a short-term, secured loan that uses your vehicle title as collateral. You provide the title, receive funds, and repay the loan in installments with interest. Once the loan is fully repaid, the title is returned to you.
The process can be completed online, and in many cases, funds may be available the same day. Approval is based mainly on your vehicle’s value and your ability to repay.
Key Takeaways
- To qualify for a title loan, you usually need to be at least 18, have a vehicle title in your name, and show the ability to repay the loan.
- Your vehicle should have enough equity, and in many cases the title must be lien-free or nearly paid off.
- You may also need to provide a valid ID, proof of income, proof of residence, and basic vehicle details such as mileage, VIN, and photos.
- Approval is based mainly on your vehicle’s value and your ability to repay, not just your credit score.
Essential Requirements for Auto Title Loans
Every title loan company is different, but based on state laws and regulations, there are specific documents you typically need:
- Lien-free Car Title: You must own the car outright, with no outstanding loans or other liens against it. The title must be in your name.
- Proof of Income: This could include salary, social security benefits, inheritance, or worker’s compensation.
- Valid ID: To verify your identity, you must provide a valid ID, such as a driver’s license, passport, or state-issued ID.
- Proof of Residence: Some states require proof of residency in the state where you are applying for the loan.
- Car Registration: Lenders may want to ensure that your car’s registration is current.
- Car Insurance: Since the car is collateral for the loan, lenders often require proof of insurance.
- Pictures of the Car: If applying online or by phone, you may need to provide photos of the car for the lender to inspect.
Title Loan Rates, Interest & Fees
Car title loans often have higher interest rates than traditional bank loans, and APRs can exceed 100% and in some cases reach up to 300% in certain states. Some states have rate caps to limit how high rates can go.
These loans are generally more expensive than traditional loans because lenders take on more risk by offering loans to individuals with poor credit.
Additionally, there may be hidden fees associated with these loans.
Common Fees Include:
- Lien fees
- Key fees
- Origination fees
- Processing fees
- Document fees
It’s important to consider these fees when calculating the total cost of the loan. While some lenders may have hidden fees, we do not. We encourage you to review your agreement closely before proceeding to ensure the loan is the right choice for you.
Car Title Loan Example (California)
A borrower, Abby, lives in California and owns a car in her name. She needs funds for an emergency and uses her car title to take out a $2,500 loan.
Under California Financing Law, interest rates for certain loan amounts are capped at about 36% APR plus the Federal Funds Rate.
Abby receives a 12-month loan at 36% APR.
Monthly payment: about $251
Total repayment: about $3,012
Total interest: about $512
She keeps driving her car while making monthly payments. Once the loan is fully repaid, the lien is removed and her title is clear again.
This example shows how longer-term, regulated loans spread payments over time and avoid large lump-sum repayment.
Lender Tip: Use a Title Loan Calculator
Before taking out a car title loan, use a title loan calculator to estimate your total repayment amount. This tool helps you understand the full cost of the loan, including interest and any potential fees, so you can make an informed decision and ensure it fits within your budget.
How to Apply for an Auto Title Loan Online
We offer a convenient and quick, completely online car title loan application process. Here is how it works.
1. Prepare Your Documents
Make sure that you have all of the necessary requirements.
2. Submit the application
Fill out our simple car title loan request form to get a free quote.
3. Approval and funding
Once you get approved, you can get your money.
Frequently Asked Questions
Can I Get a Title Loan Without Bringing My Car in Person?
Yes, you can obtain a car title loan without showing your car in person. If you apply online or by calling, you may be asked to share detailed photos of the interior and exterior of the car, but you don’t need to show the actual car physically.
How Old Do You Have to Be to Get a Car Title Loan?
You must be 18 or older to get a title loan.
How Can I Get a Title Loan if I’m Unemployed?
You can get a car title loan even if you are unemployed. To get a car title loan, you must show that you have income, but that income does not have to be a salary. It can also be other types of income, like worker’s compensation or social security payments.
What Are the Normal Repayment Terms for a Title Loan?
The loan term for a title loan typically lasts around 36 months, but it will vary depending on your state. Check out our state pages for specific information on your location.
How Do Title Loans Work in Arizona?
In Arizona, car title loans use your vehicle’s title as collateral. You apply and your vehicle is evaluated. If approved, you receive the loan amount and a lien is placed on your title. Once the loan is repaid, the lien is removed and you regain full ownership.
What Is the Smallest Title Loan You Can Get?
The smallest title loan is usually around $100. Our loans typically range from $100 to $50,000. The exact amount depends on your car’s value, your ability to repay, and applicable state laws and regulations.
