Struggling to make ends meet in the Volunteer State? You’re not alone. From Nashville to Gatlinburg, Memphis, and Chattanooga, more and more Tennesseans find that they need to rob Peter to pay Paul.
There’s good news. A title loan could be just what you need. Designed to offer fast cash to those who need a quick infusion, there’s no credit check, and you can apply online in just minutes. Not sure if this is the right option for you? Let’s explore title loans a little more.
What is a title loan?
Title loans are short-term financial tools designed for people who either don’t qualify for traditional financing because of low or no credit or who want to avoid dealing with banks in the first place.
These loans are flexible, let you borrow up to $25,000 depending on your vehicle. However, title loans are an expensive form of short-term credit that puts your vehicle on the line.
Tennessee title loan requirements
Applying for a car title loan online is simple. You’ll just need a few things, including:
- A Tennessee driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Tennessee
- A running vehicle
Pretty simple, right? In addition to those four things, you must also be at least 18 years old and not an active-duty member of the US military.
The title loan process
While banks and credit unions make you jump through hoops to take out a personal loan, getting a title loan is pretty simple. You just need to complete these six steps:
The first step is to apply for your title loan, which will take just a few seconds and requires some basic information, like your name and address.
You’ll need to submit a little further information about the vehicle, and we’ll run a quick check to verify ownership.
Next, the lender will proceed with a vehicle inspection to determine your car’s value and assess the maximum loan amount your able to borrow.
The lender will send you a digital loan agreement that explains the loan amount, interest rates, repayment terms, and other important information. You just need to sign it and send it back.
Your funds will be deposited right into your bank account. Some lenders offer the option to send your money in other ways if you prefer.
You make your preset payments and pay back the loan over time. Once your loan is paid in full, you'll get your title back from your lender.
How title loans are regulated in Tennessee
Title loans in Tennessee are currently regulated under Tennessee Code Annotated § 45-15-101 et seq.
Title loans are legal in the state, and lenders are prohibited from charging more than 2% interest per month and cannot charge more than 1/5th the original loan amount in fees. The lender cannot charge additional fees if you don’t repay the loan, either, but they can repossess your vehicle.
Cost considerations and title loan alternatives
The cost of a title loan in Tennessee is dependent on your loan amount and your APR. Here are a few examples to help illustrate the true cost of a title loan.
- Example 1: You borrow $1,500 at an APR of 300% and pay it back in 30 days.
If you took out a $1,500 loan and paid it back in 30 days, you would pay a total of $1,875 back to your lender in 1 payment. In this example, you’re paying $375 in finance charges to borrow $1,500.
- Example 2: You borrow $1,500 at an APR of 300% and pay it back in 6 months.
If you borrowed $1,500 and paid it back in 6 months, you would pay a total of $3,049.38 back to your lender in 6 payments of $508.23. In this example, you’re paying $1,549.38 in finance charges to borrow $1,500.
Personal installment loans: A better and more affordable way to borrow money with bad credit
A title loan may not be the right option for you. They do come with a higher interest rate than other loans and there’s a risk that you’ll lose your vehicle if you can’t make your payments. An unsecured installment loan might be a viable alternative.
Installment loans give you access to flexible financing with loan amounts between $200 and $3,000, as well as competitive interest rates and easy monthly installments. They’re also not secured by your vehicle and the right lender will offer options for customers with low and no credit.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Tennessee title loans.
Can I qualify for a title loan with bad credit?
Yes, you can! Your credit score is not a factor for title loans, which means even if you have bad, low, or no credit, you qualify.
Can I get a title loan completely online with no credit check and no inspection?
Yes! There's no credit checks when you apply for a title loan online. However, most lenders require a vehicle inspection to assess the value of the vehicle so that they know how much they can lend against it.
Will I receive the funds from my title loan instantly?
Most people receive their money on the same day. Generally, if the borrower applies before 2 pm EST and completes all necessary steps including inspection, they will receive their funds the same day.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in Tennessee, including:
- East Ridge
- Johnson City
- La Vergne
- Mount Juliet
- Oak Ridge
- Red Bank
- Spring Hill