Do title loan lenders check credit?

Quick Answer No, most title loans don't require a credit check. Lenders are more interested in the value of the vehicle being used as collateral. However, some lenders may perform a soft credit check to verify your identity and creditworthiness.

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Samuel Fisher Answer updated on Jun 26, 2023

Fact checked by Dwayne Dumesle

A hard credit check is not required to apply for a title loan.

Title loan approval is mostly dependent on the condition of your car. OK, let's break down how this works! 🤠

To apply for a title loan with no credit checks, you will need an active title, ID, proof of income, proof of residence, and a vehicle in working condition. With these in hand, most title loan lenders will not even ask about your credit.

Learn: Can I get a title loan online?

Now, if you have bad credit and you want a little soothing, here are some things to keep in mind:

  • 💯Credit score isn't as crucial as your car's value: Title loan lenders are usually more concerned with the value of your vehicle than your credit score. With a title loan, you will typically get between 25 to 50% of the car's value for your loan.[1]
  • 😮‍💨Soft credit checks are normal: A soft credit check may be required by some lenders. Don't freak out, though! These are usually just done to confirm your identity. Compared to a hard credit check, which can lower your credit score, a soft credit check will not impact your credit score!
  • 💸Leverage competitors: There are plenty of title loan lenders in the sea, baby! You can shop around to find a lender that will give you the most value for your car, the lowest interest rates, and the most comfortable contract terms. And, yes, you will find one who cares zero about your credit.

Let's hit this point one more time, if a title loan lender asks you for a soft credit check, it won't kill the deal. Soft credit checks are really used to verify your identity, confirm your status as owner, and take a peek at your ability to repay. It's a standard practice that should not give you the creeps, so relax, Frankie.

  1. What To Know About Payday and Car Title Loans ↩︎

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