How to Get a Title Loan on a Car? Requirements for Title Loans

You may need to borrow money at the most unexpected time of your life and need it badly. The obvious solution is to go to the bank and get a loan. However, if your credit score and history aren’t ideal, you are unlikely to find a lender willing to lend your money easily or on good terms, if any. Luckily for you, title loan lenders care about something completely different.

how to get a title loan

This article will discuss auto title loans and why you should get them (or not).

What Is a Car Title Loan?

Car title loans are short-term loans where the borrower’s car is used as collateral. Collateral is an asset (in this case, a vehicle) that a borrower provides as a guarantee of repaying the money. A lender can repossess the vehicle if a borrower fails to repay the money on time.

This certainly looks like the biggest flaw of the loan. However, it could be the only accessible option for those with a poor or insufficient credit score and sparse credit history.

So, wouldn’t it be easier and more affordable to get a personal or payday loan?

Auto Title Loans Alternatives: Comparison

Title Loan vs. Personal Loan

A car title loan involves your car as an asset to be provided as a guarantee or repayment. On the contrary, a personal loan doesn’t require collateral. Car title loans are short-term and are usually paid within 15 or 30 days. On the other hand, personal loans can be paid within 24-60 months. And that’s a vast difference that gives borrowers more time to collect the money, unlike car title loans.

Another advantage of personal loans is fixed interest rates, while car title loans typically come with high-interest rates.

Having said that, personal loans might not be the right option for you. This is because a traditional loan like that can only be taken if a borrower has a good credit score. The lower your credit score, the higher the interest rate can be.

Title Loan vs. Payday Loan

Payday loans are designed for borrowers in urgent need of small cash fast. The debt can be as low as $500 but is usually accompanied by high fees. The repayment term, however, is incredibly short. It can be as quick as two weeks after getting a payday loan.

To be eligible for a car title loan, a borrower must provide a car as collateral, while a payday loan requires proof of income.


A car title loan isn’t the only option to ease your financial burden, but it is one of the quickest.

Other loan providers can include a traditional bank or credit union – however, those lenders might require a good credit score in exchange for favorable terms.

You may also apply for credit cards and use the funds whenever you need them. Just like a title loan, credit cards should be paid every month. Whenever the debt is left unpaid and starts accumulating, a higher interest rate may apply, too.

Finally, there is one more lender you should consider when you need cash fast, and it is your family and friends. Your family is unlikely to charge you extra fees or imply an interest rate; they will be somewhat willing to lend you a small amount of money for a short period.

Repaying to your family or friends can also be divided into small amounts so that it is not strenuous for you to pay for everything at once. However, if the amount you require cannot be given by someone from your circle of loved ones, consider getting one of the long types from above.


Car Title LoanPayday LoanPersonal Loan
RequirementsA car titleIDProof of insuranceOther (license, proof of income, etc.)Proof of incomeIDBank accountCredit checkProof of incomeBank accountID
Interest Rate25% to 50% of the car’s value400% APR or higher (10%-30% of every $100 borrowed)6% to 36% APR
Repayment Period30 days2 weeks2 to 5 years
In case of defaultA lender repossesses the vehicle A borrower may end up in collection and/or be suedSignificantly lowers a credit score; a borrower may end up in collection and/or be sued

How to Get a Car Title Loan?

how to get a loan with a car title

Titlelo has significantly simplified the process of getting a car title loan. You don’t have to visit any branch since everything can be completed from the comfort of your home. Gathering all the documents may also be a stressful experience; therefore, having all the information gathered for you online will significantly speed up the process.

We offer you two means of getting a title loan: online and via the phone. There is an intuitive and short form you can fill out online with your:

  • Full name
  • Email
  • Telephone number
  • Zip code
  • Vehicle information

You may also choose to give us a call at 855-341-4500. The information we require is the same as on the form.

Note that a car title loan is legal in 23 states with limitations.

What Documents Do You Need for Car Title Loans?

At Titlelo, there are two process stages: pre-approval and approval.

Here is the information you would need to provide us with for the pre-approval stage:

  • Personal information (full name, contact details, zip code)
  • Vehicle information (make, model, year, mileage)

Once you are qualified for a car title loan, our lenders will require a set of the following documents:

  • ID
  • A lien-free title
  • Proof of income*
  • Other (proof of insurance, proof of address, or registration)

The final set of required documents will depend on your state.

*The requirement to provide proof of income will also depend on the lender. Some providers will lend money without you having a stable income, while it can be a decisive document for other lenders.

Title Loans Requirements

Every loan type has specific requirements that qualify borrowers. A car title loan has a few, so most borrowers are eligible to apply and are approved.

To apply for a car title loan, you must:

Getting a car title loan does not mean our lenders confiscate your car and its keys. It is a common misconception. Instead, you get to keep your car and drive it.

*A lien-free car title does not hold any claims by another creditor. It is a crucial criterion for lenders to know that your car cannot be repossessed or seized by a third party.

If you have previously applied for a title loan with another company, you can still do that same with Titlelo. We will help you connect with your lender to refinance your current loan. As a result, you will be able to save money and get a new loan title with a lower interest rate.

Proof of Income

Technically, you do not have to be employed in order to be approved for a car title loan. Having no income source is usually considered high-risk credit, and our lending providers currently do not approve such borrowers.

Still, there should be some income in disability, child support, alimony, social security, self-employment, etc. You increase your chances of getting a car title loan by providing proof of one of the above.

How Do Car Title Loans Work?

The only criterion to get a car title loan is the ownership of a vehicle. To apply for a loan, your car should be lien-free. Only by having the required documents can you qualify for a loan.

To remind you, the required documents include the following:

  • A car with a clear title
  • ID
  • License
  • Proof of ownership
  • Proof of insurance coverage
  • Other documents depending on the state (e.g., proof of income)

If you fit the criteria, you will need to hand over your car title and only then receive the money. You will need to repay the money within 30 days of taking out a title loan. Like payday loans, you will pay a lump sum at the end of the term. The inability to do that on time will result in losing ownership of your vehicle.

Here is how to get a title loan in a few steps:

  1. Fill out the form
  2. Get a call from one of the Titlelo representatives who will verify your information
  3. Titlelo will connect you with one of the lenders who will:
    1. Inspect your vehicle
    2. Determine the range of loan amounts you can ask for
  4. Receive your funds in your bank account or as a check shortly after the approval.
  5. When the debt is due, repay it and receive your vehicle title back.

How Much Cash Can You Get with a Car Title Loan?

how to get a car title loan

You can expect a loan that equals 25%- 50% of your vehicle’s value. A lender will examine your car title and the vehicle itself to determine its worth. The range of debt you can receive varies from the minimum loan amount of $200 to the maximum loan amount of $25,000 and more, although the average amount is $1,000.

Car Title Loan Example

Let’s say you need to borrow $3,000 for about a month. As the rules imply, you will need to pay the money within 30 days and the interest rate. The interest rates range from 25% to 50%. For this example, let’s assume the interest rate is 30%.

The additional fees come to $900, so the total amount is slightly below $4,000, precisely $3,900.

Pros and Cons of Getting Car Title Loans

Whichever loan you decide to take out will have its benefits and drawbacks. A car title loan isn’t ideal and might not be suitable for your needs, but it is one of the quickest loans with a moderate risk level.

Pros of Getting a Car Title Loan

Fast cash: In a few days, you can receive loan approval and funds as soon as possible. Some payment methods are instant (e.g., if you agree to accept a check), while others may take 2-3 working days to be transferred to your bank account.

Limited to no credit check: We do not check your credit score during the pre-approving process. However, it can be required in some states. Nothing to worry about, even if your credit score isn’t high. The rating does not influence the lender’s decision. It may only help the lender decide on the amount you can borrow.

Speedy approval: Pre-approvals at Titlelo are instant. This means you can immediately proceed to the next stage as soon as you provide all the required information. The loan approval takes up to 24 hours. The lenders take this time to verify the information provided by you, the condition of your vehicle, and to underwrite your loan.

Cons of Getting a Car Title Loan

Short repayment loan term: Although the repayment term varies from state to state, the loan is usually due within 30 days. The loan is generally paid at the end of the term, and there may be a prepayment penalty. However, Titlelo does its best to partner with loan providers that do not charge for preparing before the due date.

High fees and interest rates: At Titlelo, you don’t pay loan-processing fees, and most lenders do not charge a prepayment penalty. However, the interest rate will be higher than that of traditional loan providers. Due to the title loan’s nature and its accessibility to borrowers with low credit scores, there may also be extra fees that will be discussed and disclosed before finalizing the agreement.

You risk losing your vehicle: If you don’t pay off your debt, the lender will repossess your car and sell it.

Frequently Asked Questions

Are title loans illegal in Ohio?

A car title loan is legal in 23 states, excluding Ohio. Ohio has introduced a Short-Term Loan Act. In short, it is unlawful for lenders to possess a borrower’s title.

Other states where title loan is banned are Michigan, Arkansas, Rhode Island, Vermont, Wyoming, and others.

Are title loans legal in Virginia?

Car title loans can be applied for in 23 states, including Virginia, Louisiana, Missouri, Florida, and other states.

If you have an unexpected expense, it is legal to provide your car as collateral for the short term and pay for your medical bill, car repair, utility expenses, etc.

Can a car loan and title be under different names?

As a rule, the car title has to be in the name of a borrower. If your vehicle title has your name along with another one, it could be possible to take out a loan. However, the procedure may differ from state to state – therefore, we recommend you contact us on this matter.

If your car title has two names, a lender will likely ask for both names to be included on the application.

Do title loans affect credit?

Typically, your credit check isn’t the priority for car title lenders. And that is why taking out this loan won’t affect your credit.

Repaying the loan will not improve your credit score, either. However, if you default, your lender must abide by the law and report the case to the Fair Debt Collection Practices. This, in turn, will affect your credit score adversely. On the other hand, if you cannot pay off the debt, your car will be sold, and the amount received will cover the debt.


Getting a loan with a car title isn’t complicated and can be completed within the same day. The application process is divided into two stages: verification of your information and inspection of your vehicle. An auto title is a somewhat accessible loan as you don’t have to have a high credit score or a flawless credit history.

The most important criteria to take out a title loan are to have a working car, a clear title, and some source of income. Titlelo will assist you and match you with the best lender in your area.