Skip to content
Fast Title Lenders > How much should I Borrow with a Title Loan?

How much should I Borrow with a Title Loan?

How Much Should I borrow with a Title Loan

A frequent question that gets asked is “How much can I borrow with a Title Loan?”. This is a fairly easy question to answer base on the vehicle used for the loan.

A better question to ask is “How much should I borrow with a title loan?”. We’ll do our best to answer that question in this article.

Can does not Mean Should with Title Loans

The fact you can borrow a certain amount with a title loan does not mean that you should borrow that amount. This is very important to keep in mind to avoid a title loan that will be difficult to repay.

Avoid the trap that some lenders set by encouraging you to borrow the “Max” you are approved for. To understand what you can borrow, let’s take a look at how title loan maximums are determined.

How Title Loans Work – Max Loan Amounts

Title loans are secured loans. The vehicle used for the loan is used as collateral for the loan. This means the loan amount is directly related to what the car is worth.

This also means that you may be able to borrow a certain amount without the ability to comfortably make the payments.

In these cases, where the “Max” is more than you can afford we need to answer the question ‘How much should you borrow’. To answer that question we need to figure out how you plan on repaying the loan.

Title Loan Maximum Amounts
Title Loan Maximum amounts are determined by the vehicle value.

Title Loan Terms

There are two general ways that repay a title loan:

  1. Lump sum
  2. Monthly payments

In the case of a lumpsum, how much will you be receiving and when? Many times title loans are used to bridge a short term funding gap between the time when you will receive a lump sum payment.

This can include getting a title loan for a tax refund, legal settlement, annuity payment, or any other sure thing.

The other method of repaying a title loan is with monthly payments or monthly installments. To figure out how much you should borrow, it is extremely helpful to figure out what you can afford every month.

You’ll want to leave yourself a little room to cover unexpected expenses. If developing a budget is not really something you want to take the time to do, don’t worry, there are also some general best practices we’ll share. Some states put a cap on how much a lender can charge per month as a percentage of the borrower’s income.

For example, is you make $2,000 per month, then a title loan payment of $500 per month may seem affordable until you take into account all of the other expenses like rent, utilities, food, etc. This is why it is important to consider all of these things before signing the loan agreement.

Title Loan max amount that you should borrow
Knowing how much you should borrow with a title loan is important.

Title Loan Max Monthly Payment Calculator

The max payment calculator can help figure out what the maximum monthly payment for a title loan should be. If you don’t already know what is and is not affordable each month, start by entering your monthly take home income. Then enter each expense, as close as possible, in each respective category.

To be on the safe side there is also an “Other” category which is a percentage of your monthly income. This is for any unexpected expenses or simply a buffer to help make sure the payment is not too high.

Title Loan Calculator Max Payment Calculator:

Monthly Take Home Pay: $
Mortgage/Rent: $
Utilities: $
Food: $
Transportation: $
Miscellaneous: $
Other: %
Calculate Max Payment:
Start Over

Max Payment Result:

Total Income: $
Total Expenses: $
Max Monthly Payment: $

This tool is meant to help prepare for a title loan and not a financial planning tool. Understanding you income and expenses is important. There are several free budget planning tools available to get into more detail.

Figuring out from here how much you can borrow will depend on the lender. You can use our car title loan calculator to get an estimate of different title loan amounts and terms.


Title loans should be used sparingly when other forms of credit are not available. For vehicle owners title loans can be a great source of emergency funds. It is important tot make sure to get a title loan with affordable payments.

The fact is not all lenders will take the time and effort to ensure borrowers have the ability to comfortably repay the loan. This means the burden is on the borrower to figure out what they should and shouldn't borrow. We hope this resource helps in making that decision.