What Is a Title Loan?
| Collateral | Your vehicle's title (lien) |
|---|---|
| Keep your car? | Yes, you keep driving it |
| Amount | Based on your car's value and state rules |
| Via our network | $100–$5,000 |
| Term | 15–30 days, or installments in some states |
| Credit | All credit types considered |
A title loan in plain terms
A title loan lets you borrow against a vehicle you own. The lender records a lien on your title (or holds the paper title) and gives you cash. You keep driving. When you repay the loan and fees, the lien is released and your title is clear again.
Because the car secures the loan, many title lenders don't base approval mainly on your credit score. That makes title loans a practical option for people who own a car and need cash quickly, even with less-than-perfect credit. See if you qualify; it takes about 3 minutes.
The key features
- Secured by your vehicle. Unlike a payday loan, the car backs the loan. Read secured vs. unsecured loans.
- Amount based on the car's value. Title loans are generally offered for a portion of the vehicle's value, and state law may set limits. See how much you can get.
- Short term or installments. Classic title loans last 15 or 30 days and are repaid in one payment. Many states allow installment title loans repaid over several months.
- You keep driving. The car stays with you while you repay.
- Title in your name. Usually the car must be paid off, or nearly so, and titled to you.
What a title loan costs
Title loan costs depend on your state, the lender and the loan structure. Single-payment title loans often charge a monthly fee per $100 borrowed. For example, a $1,000 loan with a $25-per-$100 monthly fee would be $1,250 to repay after 30 days. Installment title loans spread the cost over several payments. Some lenders also charge lien recording or document fees.
Your lender shows the exact APR, finance charge and total to repay before you sign. Try your own numbers:
Title loan calculator
Many title lenders lend 25%–50% of a vehicle's value, and you keep driving your car. Estimate only; your lender shows exact terms.
Or use the full title loan calculator.
How to get a title loan
- Check your title. Make sure it's in your name and any old lien is released.
- Gather documents: photo ID, proof of income, proof of residence and insurance. See title loan requirements.
- Fill out the form. Ours takes about 3 minutes.
- Share photos or have a quick inspection so the lender can value the car.
- Review and sign. Funds often arrive the same day or next business day.
Step-by-step detail: how to get a title loan and how title loans work.
Title loan vs. title pawn vs. payday loan
| Title loan | Title pawn | Payday loan | |
|---|---|---|---|
| Collateral | Car title (lien) | Car title, under pawn laws in some states | None |
| You keep the car? | Yes | Usually yes | N/A |
| Amount based on | Car value | Car value | Income and state cap |
| Credit focus | Low | Low | Income-focused |
"Title pawn" is the term used in some states, such as Georgia. See title pawn and payday vs. title loan.
Where title loans are available
States decide whether title loans are offered and on what terms: some allow single-payment loans, some allow only installment versions, and some don't allow them. Check the current status on title loan laws by state. Where title loans aren't offered, lenders in our network may offer a personal installment loan instead. Active-duty servicemembers and dependents: covered loans follow the Military Lending Act.
Title loan terms, defined
- Lien: the lender's legal claim on your vehicle until the loan is repaid. It's recorded on the title or with your state's motor vehicle agency.
- Lienholder: the lender named on the title while the loan is open.
- Lien release: the document or electronic record that clears the lien once you pay in full.
- Amount financed: the money you actually receive.
- Finance charge: the dollar cost of the loan, including interest and most fees.
- Total of payments: everything you'll pay if you follow the schedule.
These terms appear on your loan disclosure. More definitions are in our glossary.
Worked example: a $1,000 title loan
Using the example fee above of $25 per $100 a month:
| Structure | What happens | Total to repay |
|---|---|---|
| Single payment, 30 days | Repay the $1,000 plus a $250 fee in one payment | $1,250 |
| Paid off early | Many lenders charge less if you repay sooner; check your agreement | Less than the full-term total |
| Installments, where allowed | Several smaller monthly payments | Shown on your disclosure |
These are illustrations, not quotes; actual fees depend on your state and lender.
What lenders look at
- Vehicle value: make, model, year, mileage and condition set the top amount.
- Title status: in your name and free of other liens, or close to paid off with some lenders.
- Income: enough to cover the payments, from work, benefits or self-employment.
- Identity and address: a photo ID and details that match your title.
- Your state's rules on amount, term and whether title loans are offered at all.
Credit is usually a smaller factor. Some lenders use a soft check or alternative credit data, and others run a full check. This is why people with limited or damaged credit often still qualify when the car and income line up.
Common mistakes first-time borrowers make
- Taking the largest amount offered when a smaller one covers the bill.
- Picking a due date before payday. Ask for a date that follows your income.
- Not asking about early payoff. Find out how paying ahead lowers the cost.
- Forgetting the lien release. After the final payment, confirm the lien is cleared and keep the paperwork.
Ready to see what your car could get you? Start your free request; it takes about 3 minutes.
Is a title loan right for you?
A title loan tends to fit well when you:
- Own a car with a title in your name
- Need cash quickly, possibly more than a payday loan allows
- Have credit that makes unsecured loans harder to get
- Have income to repay on the schedule you choose
Make your payments on time, and if you'll be short, talk to your lender before the due date; because the car backs the loan, an unpaid loan can lead to repossession under your state's rules. If you'd rather not use your car, a personal loan for bad credit needs no collateral. One form covers both. Check your options now.
Frequently asked questions
Do title loans keep your title?
Often the lender holds your paper title, or records itself as lienholder with your state's motor vehicle agency, until you repay. You keep and drive the car. When the loan and fees are paid in full, the lender releases the lien and your title is clear. Get the lien release in writing.
Is a title loan a good idea?
It can be when you own your car, need cash quickly, and have a plan to repay on schedule. Credit matters less than with unsecured loans, and funds often arrive fast. Your lender shows the exact cost before you sign, so you can decide whether it fits your budget.
Are title loans based on credit?
Mostly not. Approval depends mainly on the vehicle's value, a title in your name and your ability to repay. Many title lenders don't require a good credit score, though some check credit or income. All credit types are considered through our form.
Do title loans go on your credit?
Many title lenders don't report on-time payments to the major credit bureaus. If a loan goes unpaid and is sent to collections, that can show up on your credit report. Ask the lender about its reporting if building credit matters to you.
Can you get a title loan on a financed car?
Sometimes. Some lenders will lend if you have enough equity, paying off or working around the existing lien, but many prefer a clear title. Our guide to title loans on a financed car explains the options, and a personal loan is another route.
How long does it take to get a title loan?
The form takes about 3 minutes. After that, the lender reviews your request and values the car through photos or a quick inspection. Once you're approved and sign, funds often arrive the same day or the next business day, depending on the lender and how it sends money.
What happens when you pay off a title loan?
Once the loan and all fees are paid, the lender releases its lien. Depending on your state, it may send you the paper title, sign a release you take to the motor vehicle agency, or clear an electronic lien. Keep your final payment confirmation and the release paperwork in case you sell the car later.