Title loans are among the simplest options when you need quick cash — most lenders don’t even bother running credit checks.
Just show you’re the sole owner on the title of the vehicle and you’re good to go. It helps if your vehicle is in working condition, but even that isn’t always required (i.e., Yes, you can use that Honda Accord that's been posted in your driveway for months to get a title loan. 🔧🚘😄).
Learn: Where can I get a title loan?
Let's dive more into how they work and what you can expect!
When compared to other loan options, getting a title loan is relatively easy since it relies on your car title to qualify — and not necessarily your credit history or employment status. Using your car title as collateral reduces title loan lender’s risk exposure and makes things simpler for you.[1]
To apply, title loan lenders will require you to submit an application along with some important documents. This usually includes:
- title to your vehicle (lien-free)
- proof of address
- driver’s license or any government-issued ID
- proof of income
- your vehicle registration
- proof of insurance
Once they start processing your request, they’ll look at your vehicle's make, model, year, and its condition. Some lenders allow this process to be done completely online, which makes getting a title loan that much easier.
Learn: Can I get a title loan online?
However, note that not all lenders love modern technology. Some will prefer to send an agent to your home to ensure that what you uploaded matches what you have in real life and some may even require you to visit their store in-person to complete the vehicle inspection.
Then there are the dangers that come with anything easy. In the case of title loans, the amount you pay back can be double or triple what you were given. And if you fail to pay up on time, the company can come at any time to drive your sweet El Camino off to the auctions. 😢
Learn: What is the interest rate on title loans?
That’s why you should always understand the terms before signing on the dotted line.
If you're in a bind and need cash fast, a title loan may be the way to go. But it's important to know all of the facts. Read the fine print before signing anything, and shop around for the best rates. Most importantly, only borrow what you can comfortably afford to repay to protect your finances and your mode of transportation.
Good luck. 👍
