We compiled the most frequently asked questions related to car title loans. The answers are meant to provide more information on how title loans work, as well as what is required for a car title loan. We will continue to add to the list periodically when a relevant question gets asked often.
Interested in finding out about car title loan costs? Use the car title loan calculator for a real time payment, interest rate, and full repayment schedule estimate.
What do I need to Qualify for a Title Loan?
To be eligible for a title loan, generally, you will need: 1. A vehicle and a lien free title. 2. Ability to repay the loan. 3. Proof of Insurance. 4. Proof of Address. 5. Government Issued ID. Before applying, you will want to make sure you meet the title loan requirements to make the process go smoother.
Do I get to keep driving my car?
Yes. This is one of the biggest advantages of a title loan. With a title loan you continue to own and drive your vehicle during the loan. Title loans are a great way to use the equity in your vehicle when you need it without having to sell your vehicle. When you pay off the loan, your title is returned to you and the lien is released.
Is there a Maximum Amount I can Borrow?
We have no pre-set maximum title loan amount. The maximum amount you can borrow will be determined by two factors: 1. The value of your vehicle. 2. Your ability to repay the title loan. Generally, title loans are limited to 50% of the vehicle’s fair market value. So, for example, if your car’s fair market value is $8,000.00, in most cases the loan maximum would be $4,000.00. This assumes you have the ability to repay the loan.
Do you check my credit?
No, we do not perform a credit check. Most of our customers prefer not to have a hard inquiry added to their credit report, and for those in the process of rebuilding their credit this is very important to them.
What is my vehicle’s Fair Market Value?
A vehicle’s Fair Market Value is generally the value a bank would be willing to finance the vehicle for if it were sold at a dealership. There are published guides (Black Book, etc.) that provide estimates of a vehicle’s fair market value by using real data from recent vehicle auction sales. Because these guides use real data (what similar vehicles sold for at wholesale auctions) they are usually the most accurate and can differ from other online resources like Kelley Blue Book and NADA. Unfortunately, these guides are usually not available to the general public for free. Both Kelly Blue Book and NADA provide Trade-in values for vehicles which are usually (not always) close to the Fair Market Value of the vehicle. See the post titled “What is my Car really worth” for more information.
Can I pay off my loan, early, without penalty?
Yes. We encourage customers to pay off their loan as quickly as possible to save on interest. The best car title loan companies do not have prepayment penalties. You can make payments towards your Title Loan at any time and in any amount, as long as you make your minimum monthly payment. As with any other monthly term loan, by paying early and paying often, you will pay your loan off sooner and save on interest.
What happens if I miss a payment?
We tell every customer it is essential to communicate; especially if you know you are going to miss a payment. If you know you are going to miss a payment please let us know ahead of time if possible. We will do our best to work with you to help you get back on your payment schedule. If we do not hear from you, we have no way of knowing what is going on, and a loan default can lead to a repossession.
Can I get a Title Loan for an older Car or Truck?
Assuming the vehicle has enough fair market value to lend, yes. Typically, to have enough equity to support a title loan, vehicles should be 10 years old or less with less than 100,000 miles. However if the vehicle’s fair market value is more than $5,000 we can work with you. If you a classic car or truck that has value, we will be happy to provide you with a title loan.
Why is the fair market value of my vehicle different than the retail value?
The retail value of a vehicle is what a dealer charges. This includes a number of costs in addition to the fair market value. The dealer has rent to pay, utility bills, employee salaries and commissions, vehicle repairs and reconditioning, and other costs. This is the main reason these values differ. Depending on the vehicle, the difference can be significant. We use the fair market value of the vehicle to determine how much we can lend, not the retail value of the vehicle.
Are Title Loans bad?
There is no simple answer to this question. Title loans are great for some borrowers and not so great for others. There are many factors that determine whether or not a title loan is the right decision for the borrower. The simple answer to “are title loans bad” is sometimes. Unfortunately, not all title loans work out great for every borrower. This is why it is critical to find the best lender, and analyze your specific situation.
Why do you require proof of income?
We require proof of income for one reason; we do not make loans that cannot be repaid. It is our policy to act in the best interest of our customers, and make sure they can afford the loan. Note that the ability to repay the loan can come from any source. You can get a car title loan without verifying income.
Are there Online Title Loan Options?
Yes, there are online title loan options including completely online title loans with no inspection or no store visit. There are slightly different requirements for Online Title Loans, so make sure you are able to take pictures of the vehicle.
Can I get a loan on my Classic Car?
Yes, in fact Classic Car Title Loans are one of our specialties. Some title loan companies have year cutoffs, we prefer to focus on the vehicle value. Classic cars have plenty of value and unlike late model cars, they usually do not depreciate.