Key Takeaways:

  • Borrowing a small loan or choosing a short term helps get a cheap title loan
  • State laws differ regarding loan amounts and interest rates lenders can charge
  • A title loan lender charges high interest rates and fees but doesn’t require perfect credit
  • You need stable income, a lien-free vehicle, and proof of ID for title loan approval

Experiencing a financial emergency can be scary. You need money fast but may not have room for a large monthly payment. An auto title loan can provide money quickly, but it requires monthly payments. Fortunately, there are ways to get affordable car title loans.

The key is knowing exactly what you need. Choosing the right terms can help you get an affordable payment. Car title loans are flexible and meet the needs of the borrower. They aren’t a one-size-fits-all loan, so it’s possible to get a loan that suits your budget. To determine how much a title loan may cost, use a title loan calculator with your loan parameters to see the cost.

Then, before going through the title loan process, here’s what you must know. 

5 Ways to Get Cheap Title Loans

Here are five steps to consider if you’re in the market for cheap title loans.

1. Borrow a Small Loan Amount

Auto title loans have high interest rates and fees, so don’t borrow more money than you need. The less money you borrow, the lower your payment will be. To do this, consider how much you need to satisfy the emergency after exhausting all other options. These may include borrowing from family or using some money from savings, even if it’s insufficient to cover the full amount.

2. Choose a Short-term Loan

The less time you take to repay a car title loan, the less it costs. A shorter-term loan usually requires a higher monthly payment but charges less interest over the loan term.

Here’s why:

  • Lower interest rates: Lenders charge lower interest rates when you choose a shorter term. The longer you take to repay the loan, the higher the interest rates they charge.
  • Larger principal payment: With less time to repay the loan, you must repay more of what you borrowed, which means fewer interest charges over the life of the loan.
  • Less interest over the loan term: With lower interest rates and faster principal repayment, you pay less in interest costs. This keeps the cost of borrowing money lower.

3. Maximize Your Qualifying Factors

Lenders base interest rates and fees on your risk of default. This is the risk that you won’t repay the amount borrowed. The better the qualifying factors you can show a lender, the easier it is to get loan approval with better terms.

Show lenders you are a reliable borrower, and you’ll have a better chance of getting approval. Common good qualifying factors for this secured loan include:

  • Stable income
  • A loan-free vehicle
  • Minimal existing debt

4. Negotiate With Lenders

Many want to know, ‘Can you negotiate auto title loans?’ While there’s no standard or law stating you can or cannot negotiate with lenders, it doesn’t hurt to ask. If you get a quote from another title lender, you can mention it to other loan companies to see if they’ll beat the offer.

5. Understand Your State Laws Regarding Title Loans

Many states have laws regarding title loans. Familiarize yourself with the state laws so you know the maximum interest rate you can be charged or the maximum amount you can borrow. For example, in California, loan amounts lower than $2,500 cannot have an interest rate above 30%. Don’t fall for predatory lending practices; look for lenders that offer the best car title loans.

Can You Get a Cheap Auto Title Loan With Bad Credit?

It takes some legwork, but you can get cheap title loans with bad credit. While title loan lenders do credit checks, they don’t put a lot of emphasis on your credit scores. They use credit history as a small factor but don’t require perfect credit for a car title loan.

Instead, they focus on your income and the vehicle’s value. Since you use the vehicle as collateral, lenders don’t have to worry as much if you have a bad credit score. Keep in mind that if you don’t repay the loan as stated in the loan agreement, the lender can repossess your vehicle. This is why borrowing as little as possible is important.

How Do Title Loans Work?

If you have financial problems and poor credit, a title loan may help. Here’s how they work.

How to Qualify

To qualify for a title loan, you must show the following:

  • Proof of stable income: This doesn’t have to be employment. You can show other sources of income, such as retirement, unemployment, investment, or worker’s compensation.
  • Proof of vehicle ownership: You must prove you own a vehicle and have the right to put a lien against it. This means you have no other liens on the title.
  • Proof of residency: You must prove you live in the state where you’re applying for the title loan. Since title loans aren’t legal in all states, this is critical.
  • Proper identification: You must prove your identity with a government-issued ID, such as a driver’s license, state ID, or passport.
  • No current bankruptcies: You must not be involved in bankruptcy proceedings when you apply for a title loan. Past bankruptcies are okay, but current BKs are not.

What’s the Repayment Process?

Title loans usually have a one—to 36-month repayment period. Each lender has different repayment requirements, which they state in your loan contract. It’s important to understand the fine print and ensure you can follow the payment plan so you don’t risk losing your vehicle. Also, ensure you know the payment options to get your payments in on time.

How Montana Capital Can Help You Get Affordable Title Loans

We offer different types of title loan deals tailored to each borrower’s situation. No two borrowers have the same financial qualifications or needs, and we work with you to find what works. We offer a free quote with no obligation to help you determine whether a title loan suits your needs.

Here are the simple steps to get a title loan with us:

  1. Complete the online application: It takes only a few minutes to complete the application and get an answer.
  2. Finalize the loan: Upload all the necessary documents to speed up the approval process and get your funds.
  3. Receive the funds: If you apply and are approved early enough in the day, you may get funds as soon as the same day.
  4. Make payments: After receiving the funds, follow the payment plan to avoid losing your vehicle.

Pro tip: Only apply for a car title loan in emergencies. They often have high interest rates and fees and should only be used after exhausting all other options.

Alternatives to Title Loans

Title loans are best for financial emergencies, but you should exhaust all other options first, such as an unsecured loan or these options:

  • Borrow money from family or friends: Ask close friends or family to help you with your financial emergency, especially if it’s small.
  • Personal loans: Banks offer personal loans but have stricter qualifying requirements. Consider finding a co-signer for higher chances of approval.
  • Payday loans: If your emergency is small and you can repay it on your next payday, a payday loan can help you get cash fast.


What is the Smallest Amount You Can Borrow on a Title Loan?

Every title loan lender has different loan amounts, minimums, and maximum requirements. Some allow loans as low as $500, and others require higher loan amounts, starting at a few thousand.

What are the Downsides of Title Loans?

Title loans help you in a financial bind, but they have downsides, including:

  • You must own a vehicle without any loans
  • You risk losing the car if you miss payments
  • They have high fees and interest rates
  • They aren’t available in all states

Do Title Loans Hurt Your Credit?

Title loan lenders don’t report title loans to the credit bureaus. However, if you stop making payments, the lender transfers your loan to a collection agency. Since most collection agencies report to the credit bureaus, an unpaid title loan may damage your credit score.

Why Are Title Loans So Expensive?

Title loans are high-risk for lenders, so they charge high interest rates and fees to compensate. Since they don’t rely on a credit check or employment to qualify borrowers, they must charge more to stay profitable.

What is the Maximum Amount You Can Borrow on a Title Loan?

Title loan lenders have different guidelines but must follow state laws. Some lenders allow loans as high as $50,000.

Final Thoughts: Apply Online for Affordable Car Title Loans

Affordable title loans are possible if you take the right steps. The key is to find the right loan company that offers title loans for people with your qualifying requirements. When you borrow a title loan to get cash fast, be sure you borrow only what you need and keep the term short to minimize the interest costs.

Our approval process is fast and simple if you’re ready to see how much you can borrow with a title loan. It takes only a few minutes to complete an application and get an answer to see if a title loan is the right fit. If you have questions or want to talk to a professional, call us at 800-700-8900.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.