Feeling cash-strapped in the Lone Star State? Every day, Texans just like you face financial troubles. From Dallas-Fort Worth to Houston and Amarillo to Brownsville, the rising cost of living has most Texans tightening their belts and hoping they can make it through to brighter days.
Thankfully, things might not be as bleak as they seem. If you’re facing a financial shortfall and your credit is poor, a title loan could be exactly what you need.
What is a title loan?
Do you own your own car? If so, you have access to an untapped stream of income, a lot like the black gold under the Texas oilfields. A car title loan uses the title to your vehicle as collateral for a shot-term loan.
Depending on your vehicle, you could qualify for up to $25,000. And that doesn’t require a credit check, either! However, the convenience of title loans comes at the cost of high-interest rates and the risk of losing your vehicle if the loan is not repaid.
Texas title loan requirements
Most lenders only have a handful of requirements, including:
- A Texas driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Texas
- A running vehicle
You must also be at least 18 years old and not an active-duty member of the US military.
The title loan process
Ready to get started? Great! The process is simple. You’ll need to complete just six easy steps.
First, you need to submit your application. This should take just a few seconds and requires some basic information, like your name and address.
The lender will verify your identity, ownership of the vehicle in question, and your place of residence. This usually takes very little time.
Some lenders will request that you send them pictures of the vehicle, but others may send someone to inspect the car before approving the loan.
If everything checks out, the lender will offer you a loan. Read over the agreement and accept it if you like what they’re offering.
Once you sign and resend the agreement, the lender will disburse your funds, usually to your bank account.
You’ll make regular payments to pay back the loan. Once your loan is repaid, you'll receive your title back and you'll be completely free from all debts to your lender.
How title loans are regulated in Texas
Title loans in Texas are currently regulated under Texas Finance Code § 393.001 et seq.
Not only are title loans legal in Texas but there is no legal limit to how much you can borrow, although some cities have their own requirements.
Houston, Austin, Dallas, and San Antonio limit the amount of the loans to either 70% of the vehicle’s market value or 3% of your annual income, whichever is less. Killeen residents can't borrow more than 20% of their monthly income.
Title loans are limited to a maximum of 180 days, so you never need to worry that you’ll be locked into a long-term loan.
Cost considerations and title loan alternatives
The cost of a title loan in Texas 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 $1,000 at an APR of 300% and pay it back in 30 days.
If you took out a $1,000 loan and paid it back in 30 days, you would pay a total of $1,250 back to your lender in 1 payment. In this example, you’re paying $250 in finance charges to borrow $1,000.
- Example 2: You borrow $1,000 at an APR of 300% and pay it back in 6 months.
If you borrowed $1,000 and paid it back in 6 months, you would pay a total of $2,032.92 back to your lender in 6 payments of $338.82. In this example, you’re paying $1,032.92 in finance charges to borrow $1,000.
Personal installment loans: A better and more affordable way to borrow money with bad credit
Title loans often come with higher interest rates than conventional loans. There’s also a chance that the lender will repossess the vehicle if you default on the loan. Personal installment loans for bad credit might be a viable alternative, as it comes with less risk.
While your credit score will play a role, there are options for people with low, no, and bad credit. The right lender will also offer flexible terms, access to funding between $200 and $3,000, and a structured repayment agreement that ensures you can repay the loan easily.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Texas title loans.
Can I qualify for a title loan with bad credit?
Yes! Your credit score does not play a role in title loans. The loan is secured by the value of your vehicle instead of your credit score. That means even those with bad credit can borrow the money they need to make ends meet.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can get a title loan online with no credit checks. However, lenders must make sure that the vehicle is operational and that it’s in good condition.
Will I receive the funds from my title loan instantly?
Title loans are very fast. Most people receive their funds the same day (assuming they apply before 2 pm EST and complete all the required steps).
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in Texas, including:
- College Station
- Corpus Christi
- El Paso
- Fort Worth
- Grand Prairie
- League City
- Missouri City
- Round Rock
- San Angelo
- San Antonio
- Sugar Land
- Wichita Falls