Key Points
- Out-of-state title loans may be possible, but they vary by lender and state laws in the state you reside
- Interest rates on out-of-state title loans are generally much higher than standard title loans, so registering your vehicle in the new state is a better choice
- Each state allows different grace periods to register your vehicle, and if you miss it, you may owe penalty fees
- You can keep your car and use it as you normally would when borrowing a car title loan, but you must make payments on time to avoid repossession.
Is it Possible to Get a Title Loan with an Out of State Title?
Yes, you can get an auto title loan even if your car isn’t registered in the same state you’re applying. But remember that you must show proof of your current address along with other pertinent information when applying for a title loan.
It’s up to the specific lender to approve an out-of-state title loan. Some lenders may avoid it because of the lengthy paperwork approval process.
What Does It Mean To Get a Title Loan in a Different State?
An out-of-state title loan is a loan on a car title you didn’t register in your current state.
For example, if you moved from Florida to Alabama and didn’t register your car in Alabama yet, you have an out-of-state title. If you need emergency cash and want to use your vehicle’s title as collateral, you may need to apply for an out-of-state title loan.
How To Get a Title Loan in a Different State
When securing an auto title loan in a different state, remember that you must prove residency in the state you’re applying plus meet all other requirements of a title loan.
Title loan lenders must have adequate proof that you can afford repayment, have a clear title, and have a valid driver’s license and insurance. State laws vary around the country, so you must check with your title loan lender to determine what’s required to get approved for a title loan.
Here’s what to expect.
Check Your State Laws
Each state has different laws regarding title loans, including if you can secure a loan on a car not registered in your state. If you are unsure, you can apply online for a title loan to determine if you can get an auto title loan in your state with an out-of-state title. There’s no obligation to accept the offer if approved.
Determine Eligibility
If you’ve determined that your state allows out-of-state title loans, you must determine individual eligibility. To be eligible, you must have a clear title, which means you own your car without any liens. You must also meet the lender’s income and vehicle requirements. This varies by lender, as does the amount you can borrow.
Provide Proof of Residence
If you live in a state that allows out-of-state title loans, you may still need to prove residency in the state you’re applying for the title loan. For example, if you moved from Florida to Alabama, but didn’t register your vehicle in Alabama yet, you’d need an out of state title loan because your title is registered in Florida. To prove residency in Alabama, you must have a current driver’s license or other government-issued ID proving your residency in Alabama, not Florida.
Common proof of residency includes mortgage statements, lease agreements, credit cards, or bank statements. The documents must be recent, usually within the last 30 days, and have all personal information to prove residency.
Provide Proof of Income
All lenders require that you provide proof of income. This ensures you can afford to repay the loan. You don’t necessarily have to be employed, though.
Many title loan lenders allow different forms of income, such as disability, unemployment, or retirement income. You must provide all the necessary documents proving consistent income, including paystubs, tax returns, or bank statements.
Provide a Government-Issued Photo ID
Most lenders require you to prove your identity with a government-issued photo, such as a driver’s license or state ID. Talk to your lender to determine if you must have an updated ID from the state you’re applying or if your existing ID is sufficient.
Determine if Your Vehicle Qualifies for a Title Loan
Owning your vehicle lien-free is one requirement when qualifying your vehicle for a title loan. You must also prove its value. The vehicle value is a major factor in determining your loan amount.
The good news is you may not need a vehicle inspection. Many online lenders allow you to upload pictures of the vehicle. This includes pictures of the vehicle’s exterior from all angles and interior, including the odometer and VIN.
The Title Loan Process
The application process for a title loan can typically be done online. If you’re more comfortable, you can also speak to a title loan agent on the phone to discuss your title loan options.
How Title Loans Work
To get a title loan in a different state, here are the steps to take to finalize the loan.
- Complete an Application
Completing the title loan application starts the process. You’ll provide information, including:
- Personal identifying information
- Contact information
- Income details
- Vehicle information:
- Make
- Model
- Year
- Mileage
With this information, you can receive a pre qualification which tells you how much you might borrow and on what terms.
- Upload Documentation
If you agree with the terms provided and want to move forward, you must upload the necessary documentation, including:
- Income documents
- Proof of residency
- Vehicle information:
- Pictures of the vehicle’s interior
- Pictures of the vehicle’s exterior
- Odometer reading
- VIN (Vehicle Identification Number)
- Send In Your Title
Since you’re using your vehicle title as collateral for the loan, you must send your title to the lender. After approval, the loan agent will instruct you how to send the title. Usually, it’s via overnight delivery.
- Receive Funds
You will receive your cash after final approval and signing the loan agreement. The time it takes to receive the funds depends on when you finalize your agreement. Some borrowers may get funds the same day if they complete the process by 1 PM local lender’s time. Otherwise, it may take one business day to receive funds.
- Keep Your Car
When you borrow money on a title loan, you keep your car and can drive it like normal. There aren’t any restrictions on how you can use your car. However, you cannot sell it until you fully repay the title loan.
- Make Payments
You must make payments as written in the loan agreement. If you don’t make your payments, you may put your car at risk of repossession. It’s important to only accept a loan payment you know you can afford, and if you have trouble, contact the title lender immediately.
- Receive Your Vehicle Title Back
After repaying the loan in full, you will receive your vehicle title again. At this time, you are free to do what you want with the car, including selling it.
Do You Need to Register Your Car in Your New Home State?
You must register your car in your new home state. The good news is most states offer a grace period. However, you could face strict penalties and fines if you miss the grace period. It’s important to check your new state’s Department of Motor Vehicles website for specific details.
In general, here’s what each state requires.
| Grace Period | States |
| No Grace Period | Arizona, Massachusetts, Michigan, North Dakota, Wyoming |
| 10 days | Alaska, Florida |
| 15 days | Kentucky |
| 20 days | California, Pennsylvania |
| 30 days | Alabama, Arkansas, Georgia, Hawaii, Illinois, Iowa, Louisiana, Maine, Mississippi, Missouri, Nebraska, Nevada, New York, Ohio, Oklahoma, Oregon, Rhode Island, Tennessee, Texas, Virginia, Washington, West Virginia |
| 45 days | South Carolina |
| 60 days | Delaware, Indiana, Maryland, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, North Carolina, Utah, Vermont, Washington DC, Wisconsin |
| 90 days | Colorado, Connecticut, Idaho, Kansas, South Dakota |
How Much Can You Borrow?
The maximum amount you can borrow for a title loan varies by state. Max loan amounts typically range from 25% to 50% of your vehicle’s value and most lenders have a cap of $50,000.
Before applying for a title loan, it’s important to determine how much you can afford. A title loan calculator may help you understand the monthly payment requirements for each loan amount. It will also show you how much interest you’ll pay over the life of the loan and how each payment is applied.
What are the Interest Rates on Title Loans?
The interest rates on title loans vary by lender and state, as each state has different requirements. On average, expect to pay 200% to 300% annually, depending on the lender. Most title lenders charge a higher interest rate for out-of-state title loans. This is due to the extensive verification and paperwork involved in processing these loans.
Lender Tip
Title loans typically come with higher interest rates, so it’s best to reserve them for emergencies. It’s also a good idea to wait until you can register your vehicle in your new state. Out-of-state title loans usually have even higher interest rates than traditional title loans.
Alternatives to Title Loans in a Different State
If you haven’t yet registered your car’s title in your new state, there are some alternatives to consider other than car title loans.
FAQs
What Happens if You Don’t Pay Your Title Loan?
If you don’t repay your title loan, you risk losing your car in a repossession. Each state has different laws regarding when a title loan lender can repossess a vehicle and what steps they must take.
If you don’t pay the defaulted amount within the grace period, the title loan lender can repossess the car to recoup their investment. In some states, the lender can still come after the borrower for any outstanding amount not covered after selling the vehicle.
Can You Be on the Title but Not on the Loan?
How you hold title to the car determines if you must be on the title loan with the other owner. Look at your title for the following
- And or And/Or between names means both parties must sign the loan agreement
- Or between names means only one party needs to sign the loan agreement, not both
Do You Have To Say What a Title Loan Is For?
No, you are not obligated to disclose how you’ll use the title loan funds. However, we recommend they are used only for emergency situations since they generally have much higher APRs and fees.
Can You Get a Title Loan in Texas With an Out-Of-State Title?
Yes, you can get a title loan in Texas. They have a 30-day grace period to register your vehicle after claiming residency in the Lone Star state. Some lenders may allow an out-of-state title loan if you haven’t yet registered your vehicle, but you must prove residency in Texas to qualify.
Final Thoughts
Yes, you can get an out-of-state title loan. However, it’s important to note that this may require more documentation and can come with high-interest rates and fees. Each state has its own laws for out-of-state title loans.
The easiest way to check your eligibility is by applying online. This allows you to see if you qualify and review the loan terms comfortably from home, without any obligation to accept the loan.
The pre-qualification process is simple, and provides quick results. Within a few minutes, you can find out if a title loan is an option to address your financial emergency.
We recommend registering your car in your new state before applying for a loan, especially if you have an out-of-state title. This can simplify the process and speed up your loan application.
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.