Car Title Loan Candidate

Before getting a car title loan make sure you are a good candidate for one. Despite what some lenders would have you believe; car title loans are not the answer to everyone’s financial problems. To be a good car title loan candidate the loan needs to be worth it to be a good decision.

One reason customers consider Fast Title Lenders the best place to get a title loan is because we tell people when a vehicle title loan is not the right choice.  For many customers title loans are not the answer, and, in some cases, can even become a problem instead of a solution. This is especially true when the loan is not affordable.

What makes a Good Title Loan Candidate?

What does it take to be a good title loan candidate? The answer is there are criteria that borrowers should meet to be considered good candidates. We go over these in detail in the following sections. These criteria include:

  1. Loan Amount
  2. Vehicle Value
  3. Repayment
  4. Title Loan Requirements

Before moving forward with a car title loan make sure it will improve your financial situation. Remember, car title loans are not long term solutions.

Car title loan candidate scale
Car Title Loans need to be worth it.

It is important to remember that car title loans are meant to be short term solutions. Trying to make a title loan a long term solution can result in a very expensive and costly repayment schedule. There are some title loan cost examples in our discussion of why title loans are not long term solutions.

Criteria for Title Loan Candidates

There are several criteria that could align to borrower’s requirements before Before proceeding with a title loan. Examine each and make sure you make a good candidate by meeting the following criteria.

Car Title Loan Amount

The car title loan amount needs to accomplish two things:

  1. Cover the expense that led to needing the title loan; and
  2. Result in a loan with a monthly payment you can afford.

If the title loan amount does not cover the expense you need the loan for; you may not be a good title loan candidate. Additionally, if the loan does not result in a monthly payment you can afford, then a title loan may not be the right choice.

To get an idea of different payments for different loan amounts and terms, use the car title loan calculator. If you find a loan amount that meets your needs, with a payment you can afford, you may be a good candidate for a title loan.

If the amount is small (less than $500), than a Payday Loan or Payday Alternative Loan may be an option. These loans do not require using the vehicle as collateral.

Many car title lenders limit title loans to $10,000.00. If the loan amount is more than this, you may want to look into an alternative or find a lender with no pre-set limit.

Vehicle Value

The vehicle value needs to support the loan amount from the previous step. Usually title loans are limited to 50% of the vehicle’s fair market value. So, to be a good title loan candidate, your vehicle should be worth twice the loan amount needed.

To get an idea of your vehicle’s value perform an appraisal and use one of the online valuation tools like KBB or NADA.

If the loan amount needed to cover your expense is $4,000.00, then you will need a vehicle worth at least $8,000.00. You are probably not a good title loan candidate if your vehicle is not worth enough to cover the loan amount.

Repayment Methods

You will need some way to repay the loan. Losing your car is a possibility, so the ability to repay the loan is important. If you have any doubt about your ability make your payments then consider other alternatives. 

Online Title Loan Payment methods
Find a Title Loan company that provides a payment method that is convenient for you.

Funds to repay the title loan can come from any source; even the vehicle itself. This makes it possible to get a title loan without income verification if necessary. If you have no way to repay the title loan, then you are not a good candidate.

Title Loan Requirements

Finally, to be a good car title loan candidate you will need to meet the online title loan requirements. These include a vehicle, lien free title, drivers license, proof of insurance, and vehicle pictures.

If you cannot meet the title loan requirements, then you are not a good title loan candidate.


Even the cheapest title loans with the lowest rates can be costly, especially when compared to other loans. To determine if a title loan is the right choice, weigh the costs versus the benefits. 

Benefits should always outweigh the costs to be a good decision. Make sure you are a good candidate for a title loan and that your financial situation will improve.