Yes, even with a bad credit score, you can take out a loan against your vehicle title and continue to use your car as usual.

If you’re finding it hard to qualify for an emergency loan, consider borrowing money against your car. This is possible by using your vehicle as collateral, even if it’s not fully paid off yet.

This option allows you to borrow money based on your car’s value while you continue driving it.

However, be aware that these car equity loans typically come with high interest rates. A significant risk is the potential impact on your credit score if you fail to repay the loan, and also the possibility of car repossession.

Before you take out an auto equity loan, here are a few things you should know.

What Is a Loan Secured By Your Car Title?

Auto equity loans, also known as car title loans, are secured loan. They offer short-term funding based on your car’s value. These loans suit car owners with poor credit

Most title loan lenders will value your car’s equity and may offer up to 50% of its value, with a maximum of $50,000, depending on your state’s legal title loan regulations, which vary from state to state.

You can receive your instant cash within one business day and continue driving your car as long as you pay back the loan in monthly installments, which include high interest. However, if you fail to pay off the debt, the lender could repossess your car.

The pre-approval process for car title loans online is quick and efficient, often taking as little as 15 minutes.

How Does an Auto Equity Loan Work?

Applying for auto title loans is fast, secure, and free! It can be completed online as well.

Apply Today

First, complete an online loan application here. This only takes a few minutes. You’ll be asked to provide information like the make, model, and mileage of your car, as well as proof of income documentation.

Then, you will receive a decision within 24 hours or less and find out how much cash you can get against your car.

Sign Your Contract

Read the contract carefully to ensure the agreed-upon details are correct, including the amount of cash you’ll receive, the interest rate, and your monthly payments. If you have any questions, please feel free to ask us, and we will be happy to provide answers.

Get Your Money

Get your money online! You can either pick up your money in person at a participating location or have it deposited directly into your bank account. Visit a local MoneyGram in your area to pay back your approved funds!

Talk to Us 24/7

Borrow money against your vehicle title is similar to taking out a loan against your home. You borrow money against its value and repay according to your loan terms. To learn more about your options when using your car as collateral, talk to us a licensed title loan lender in US.

How to Use Your Vehicle Title to Secure a Loan?

The minimum loan amount varies by state. While some states offer loans under $1,000, our minimum loan amount is $500, with a maximum of $50,000.

Typically, you can use your car as collateral to secure a loan up to 50% of its value. With us, you may be able to get up to 70% of your car’s value, provided you meet the following requirements:

  • The title of the vehicle in your name
  • A Must be at least 18 years old
  • A valid government-issued ID is required
  • Consistent income to show you can repay the loan
  • Positive equity in your vehicle so it can be used as collateral
  • Credit history is helpful, but may not be the determining factor

When Is an Auto Title Loan the Right Choice?

Auto title loans have their benefits. An auto equity loan may be the right choice for you if you need:

Lower interest rates

Title loan interest rates are high compared to a regular loan. There’s no guarantee you’ll get lower interest rates, but because you securitize the loan with a vehicle as collateral, you may get lower rates than a payday loan or cash advance.

Flexibility with payments

Many auto equity loan lenders offer multiple term options to help you find the most convenient loan.

Fast qualification

Unlike traditional loans, the qualification process is fast, does not require too many, and it is completely online.

Fast funding

When you’re in a bind for money, fast funding is crucial. Auto equity loans may be funded in as little as one day, whereas other options like personal loans could take weeks and a lot of paperwork before receiving funds.

Important Details to Know About Title Loans

If you’re looking for cash but can’t find a loan that will accept you, you may be able to borrow money against your car. But before you take out a title loan equity, it’s important to understand the costs and risks involved.

Expenses on Auto Title Loans

Like most loans, title loans charge interest, which is normal when you borrow money from a lender. There are hidden fees associated with a car title loan that you should be aware of. Some lenders include interest-earning fees like DMV lien fees and documentary stamp fees. All our repayment plans are without prepayment penalties or hidden fees.


When you take a loan against your car, you put it at risk of repossession. Your car is the collateral. In the event that you miss your title loan payments, your car can be repossessed and sold at a public auction to compensate for the lost money.

Upside Down

You also risk getting upside down on your car. This means you owe more than the car’s current value. An example of this would be if you get into an accident that totals your car. In this case, you may need more money to repay the auto loan, leaving you with the burden of owing the money and without a car to drive.

The Alternatives to Auto Title Loans

If auto title loans don’t seem right for you or you can’t get approved for one, there are alternatives. These options include:

  • Personal Loan – A personal loan is an unsecured loan. You don’t need collateral, but you’ll need higher credit scores and better qualifying factors to get approved with most lenders.
  • Have a Side Hustle or Additional Source of Income – Starting a side hustle or finding a way to increase your income can offset future financial emergencies. You can do anything from shoveling snow, walking dogs, or working remotely as a freelancer.
  • Home Equity Loan – If your home’s value is more than what you owe, you may be able to borrow some of the home equity. Home equity loans are secured loans but have stricter requirements because the loan amounts are typically higher.
  • Credit Card Your credit card may allow a cash advance but proceed carefully. Find out the fees and interest rates because most credit card companies charge a higher APR on cash advances than purchases.
  • Trade-in or Sell the CarIf your car is worth something, you can trade it in for a cheaper car or sell it if you have another car. This will free up a lump sum of cash and help you satisfy your financial emergency.
  • Cash-out RefinanceA cash-out refinance is a refinance of your residence. You’ll need equity in your home and will refinance your first mortgage for one with a higher balance. Cash-out refinance loans take 30 to 45 days to close.

Car Title Loans FAQs

How to Calculate Your Car’s Worth for a Title Loan?

What Happens When You Use Your Car as Collateral for a Loan?

How Much Can I Borrow Against My Car?

Can I Get a Loan Against My Car That Is Not Paid Off?

The Bottom Line

Emergencies can take anyone by surprise. Borrowing money against your car can provide you with cash quickly, regardless of your credit history. By paying back the loan on time, you’ll resolve your financial crisis and get your finances back in order.

As with any secured loan, if you default, you risk losing your vehicle and damaging your credit. Because of this, it’s wise to only use these loans in an emergency — after exhausting all other options.

Is Borrowing Money Against Your Car the Best Option?

If using your car as collateral for a loan seems like your best option, it’s wise to shop around. Compare interest rates, repayment terms, and fees across various lenders to find the most suitable loan.

At Montana Capital Car Title Loans, we offer superior financing options for title loans. Looking for a reliable partner to guide you through your loan choices? We’re here to help you explore your options effectively.

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.