Virginia is a study in contrasts from the Appalachian Mountains to Chesapeake Bay. However, residents have more in common than many realize. Whether you’re enjoying the sun and sand in Virginia Beach, the shopping of Charlottesville, or the history of Richmond, there’s a good chance that you’re having to make do with less, financially speaking.
Meeting all your financial obligations is tough between rising interest rates and the increasing cost of living. Virginians have access to an important tool, though. A title loan could give you the money needed to get over the hump, even if you have bad, low, or no credit.
What is a title loan?
There are two types of loans — unsecured loans are based on your creditworthiness because there’s no collateral to secure them. Secured loans, on the other hand, are backed by the value of an asset. In the case of a title loan, that’s your vehicle's title.
Title loans, also known as loans on car titles, are high-interest, short-term loans that should only be used for financial emergencies. You should use them wisely as you risk losing your vehicle if you're unable to repay the loan.
Virginia title loan requirements
So, what do you need to apply for a title loan in Virginia? The requirements are pretty simple, really. You'll need the following:
- A Virginia driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Virginia
- A running vehicle
You’ll also need to meet a couple of requirements. First, you must be at least 18 years old. Second, you cannot be an active-duty military member.
The title loan process
Worried that getting a title loan will involve jumping through the same hoops as applying for a mortgage or a car loan? Good news — it’s much simpler.
The first step is to submit an application that includes your basic information, like your name, address, vehicle type, etc.
The second step involves verifying your place of residence, age, place of employment, and all the rest.
Depending on the lender, you’ll either need to take photos of the car and upload them or an inspector will be sent to your home. The inspection helps determine the amount you can borrow
Once the vehicle is inspected, the lender will offer you a loan. You’ll need to read the terms of the agreement and, if you’re happy with them, sign it and send it back.
This is the good part — you get your money. Most title loans fund the same day if you choose an expedited disbursement method.
You’ll follow the structured repayment plan the lender spelled out in the loan agreement to pay back the money. Don't worry, you'll get your title back as soon as the loan is paid in full.
How title loans are regulated in Virginia
Title loans in Virginia are currently regulated under Virginia Code § 6.2-2200 et seq.
They’re legal in Virginia and the state limits the amount of interest lenders can charge to 36% per year. Lenders are allowed to add fees to their agreements, but late fees cannot exceed 5% of the late payment amount.
Virginia allows title loans up to 50% of the value of the vehicle, and all title loans must be at least 120 days, but cannot be longer than 12 months.
Cost considerations and title loan alternatives
The cost of a title loan in Virginia 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 $500 at an APR of 300% and pay it back in 30 days.
If you took out a $500 loan and paid it back in 30 days, you would pay a total of $625 back to your lender in 1 payment. In this example, you’re paying $125 in finance charges to borrow $500.
- Example 2: You borrow $500 at an APR of 300% and pay it back in 6 months.
If you borrowed $500 and paid it back in 6 months, you would pay a total of $1,016.46 back to your lender in 6 payments of $169.41. In this example, you’re paying $516.46 in finance charges to borrow $500.
Personal installment loans: A better and more affordable way to borrow money with bad credit
Title loans can come with high interest rates. There’s also the possibility that the lender will repossess your car if you default on the loan. If those risks are too much for you, consider a title loan alternative, like bad credit installment loans.
Installment loans are unsecured, which means your credit score will be checked. However, the right lender will offer options designed specifically for those with bad or low credit, so you don’t have to worry about being declined.
You’ll also have access to a flexible loan amount, from $200 to $3,000.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Virginia title loans.
Can I qualify for a title loan with bad credit?
Yes! Because title loans are secured by the value of the vehicle, bad credit doesn’t affect approval odds. The lender is more interested in your ability to repay the loan.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can get a title loan online with the hassle of credit checks. However, most lenders will require an inspection. The inspection helps determine the vehicle’s value and the amount you can borrow.
Will I receive the funds from my title loan instantly?
Most borrowers get their money the same day. You should have your money that day if you’ve completed the process (including the inspection) by 2 pm.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in Virginia, including:
- Newport News
- Virginia Beach