Do banks do title loans?

Quick Answer No, banks generally do not offer title loans. Title loans are typically provided by specialized lenders, such as title loan companies or online lenders. These lenders focus specifically on providing loans where the borrower uses their vehicle's title as collateral.

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Jack Woerner Answer updated on Jun 14, 2023

Fact checked by Dwayne Dumesle

Banks are traditional lending institutions which means they generally only offer traditional lending products like mortgages, auto loans, and business loans. So, it will be very hard to find a bank that offers title loans.

Banks don't like to deal with title loans because the interest rates are high, the terms are short, and the borrowers are often in a tough spot. That's why banks leave title loans to specialized lenders, who are more comfortable with the risk.

Learn: Where can I get a title loan?

However, if you need a title loan quickly and don't want to spend your time calling different banks, just stick to searching for a specialized title loan lender. The wheels will be greased and you'll get your title loan in a hurry.

Here are a few tips to use when shopping for a title loan:

  • Compare interest rates and fees.
  • Understand the terms and policies of the loan.
  • Make sure the lender is licensed and insured.
  • Get quotes from multiple lenders.

Learn: What is the interest rate on title loans?

Bottom line, finding a bank that does title loans can be a slog. We recommend sticking to specialized lenders where title loans are their bread and butter.

A credit union or an online-only bank might also give you more options than a traditional bank. But beware of extra fees and interest rates!

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