Car title loans
Use your qualifying vehicle title as collateral.
Learn what lenders commonly review, what documents may be needed, and what costs and risks deserve your attention.
What is a car title loan?
A car title loan is secured financing that uses a vehicle title as collateral. Depending on state law and the lender, the potential loan amount may be influenced by the vehicle’s value, title status, income, existing liens, and ability to repay. Borrowers generally keep possession of the vehicle while making payments.
Common items a lender may request
- A government-issued photo ID
- A clear or qualifying vehicle title in your name
- Vehicle registration and proof of insurance
- Proof of income and residence
- The vehicle for inspection or valuation, where required
Important risks
Title loans may carry substantial borrowing costs. If payments are missed or the agreement is otherwise breached, the lender may be able to repossess the vehicle. Review the total repayment amount—not only the payment size—and make sure the schedule fits your budget.
Questions worth asking
- What is the APR?
- What fees are added?
- How many payments are required?
- Is there a prepayment penalty?
- What happens after a late payment?
- When can the vehicle be repossessed?
What if my credit is less than perfect?
Credit challenges do not always end the conversation. Some title lenders consider vehicle value, title status, income, recurring expenses, and ability to repay alongside credit history. This does not mean guaranteed approval or low-cost financing.
Factors that may be reviewed
- Vehicle value and condition
- Clear or qualifying title ownership
- Verifiable income and expenses
- State-specific eligibility rules