Key Takeaways:

  • Most banks and credit unions don’t offer car title loans, only personal loans
  • You can apply for auto title loans with online title loan lenders in a few minutes
  • Verifiable income for a title loan includes pension, retirement, and unemployment
  • Title loans typically have high interest rates and should be for emergencies only

Are you looking for guaranteed title loan approval? Car title loan approval is fairly straightforward, especially if you have a clear title and verifiable income. While there isn’t a foolproof guarantee, owning a vehicle in your name without any liens increases your chances of car title loan approval.

A car title loan offers fast funding options without many hurdles. You don’t need a perfect credit history or low debt-to-income ratio like a personal loan requires to get a title loan. Instead, lenders focus on two factors—the car’s value and your income- to determine if you qualify for online title loans.

Loan Options with High Approval Rates

Some loans, including auto title loans, have high approval rates. By following specific steps, you can increase your chances of approval, but there’s never a guarantee of approval. Title loans are known for their lenient approval criteria, making them accessible to borrowers with bad credit, often without the burden of high-interest rates.

  • Auto title loans: If you own a car without any loans, you may be able to borrow against the car’s equity, using the vehicle’s title as collateral.
  • Payday loans: If you have steady employment, you can use your future paycheck as collateral to get funds between paydays.
  • Prepaid credit cards: A prepaid credit card requires a deposit of funds, which the card issuer uses as your credit line.
  • Secured loans: Many loans require collateral for approval, especially with bad credit. Examples include a car, house, or bank account.
  • Home equity loans: Using your house as collateral, you may be able to borrow money from your home’s equity or the amount you own.

What are Car Title Loans?

Car title loans are loans against your car’s equity. Most lenders require you to own the car free from any loans. If you do, you can borrow from the car’s value, using the vehicle title as collateral.

Most lenders allow car owners to borrow 25% to 50% of the vehicle’s value. This ensures there is still equity in the vehicle should you stop making payments. In that case, the lender would repossess the vehicle and sell it to recoup the money lost.

How do Car Title Loans Work?

Car title loans are an exchange of funds for a vehicle’s title. The title loan lender keeps the car’s title until you repay the loan, as stated in the loan agreement. You can continue driving the vehicle normally. The only thing you cannot do is transfer or sell the vehicle until you pay the title loan in full.

Car title loans have a fixed interest rate and require monthly payments. You can usually repay the loan early without paying a prepayment penalty, which may save you money on accumulated interest.

Car title loan amounts may vary from $500 to $50,000 and must fall within the lender’s allowance of the vehicle’s value. Interest rates can get as high as 300%, which is why paying them off early whenever possible is important.

Reasons Car Title Loans May be a Good Option for Bad Credit

If you have bad credit, you may wonder how to get guaranteed approval on a car title loan online. While guaranteed title loan approval doesn’t exist, here are some reasons they may be a better option than other personal loans with bad credit.

  1. Vehicle collateral increases your chances of approval
    Title loan lenders focus on your vehicle’s value rather than your credit report. This makes it easier to get approved for an auto title loan with bad credit. While lenders must ensure you can repay the loan as agreed, they can repossess the vehicle if you don’t pay, which allows them to worry less about your credit score and more about your vehicle.
  2. Title loan lenders focus on income versus credit history
    Most title loan lenders focus on your income to determine title loan eligibility. You don’t need employment income to qualify, but you need some type of consistent income, such as retirement, or passive income for cash title loans. A car title loan lender focuses on your income because it helps them assess if you can afford the loan payments. 
  3. Title loans often provide fast cash
    If you need money fast and have bad credit, title loans may be your best option. Some lenders can fund title loans the same day you apply. This occurs when you get final approval before the lender’s cutoff time, usually 1 – 2 PM local time. Even if you can’t get funded on the same day, most lenders fund title loans within a few business days.

How Can I Secure Guaranteed Approval for a Title Loan?

While there’s no such thing as guaranteed approval for a title loan, there are a few steps you can take to increase your chances of title loan approval.

Prove Consistent Income

Car title loan lenders focus on your income. This tells them if you can afford the monthly payments on cash title loans. The more consistent your income is, the more likely you are to qualify for a title loan. Common documents used to prove consistent income include pay stubs, bank account statements, Social Security, pension, and unemployment letters.

Own a Lien-Free Vehicle

Lenders require a lien-free title to secure a title loan. This means you own the car without any loans. When you have a lien-free title, the title loan lender can use your title as collateral for the secured loan. They take possession of the title while you have an outstanding balance.

Have the Vehicle Title in your Name

Your name must appear on the car title to get approved for a title loan. It’s easiest if your name is the only name on the title. If you own the car with another person, they may also have to provide approval for the title loan.

The Application Process for Car Title Loans

The application process for car title loans is simple. Many lenders offer the application process online, instantly giving you an answer.

  1. Complete an online application
    The online application for title loans asks for basic information about you, your income, and your vehicle. Completing the application takes only a few minutes, and most lenders provide an instant answer. If approved, you’ll receive options for loan terms and interest rates.
  2. Gather the necessary documents
    If you decide to move forward with the car title loan process, you must gather the documents title loan lenders need to determine if you qualify for the loan. This includes:
    • Income documents 
    • Government-issued ID 
    • Proof of residency
    • Proof of auto insurance 
    • Vehicle title with your name on it
  3. Evaluate your loan options
    After receiving the offers for different loan terms and interest rates, compare them side-by-side. Look for a loan with the monthly payment you can afford while minimizing the total interest paid.
  4. Upload your documents
    After selecting the best loan offer, upload the necessary documents. The lender will inform you if you need other documents to get final title loan approval. Upload your documents promptly to get your funds fast.
  5. Provide pictures of your vehicle
    Most title loan lenders don’t require bringing your vehicle in for an in-person inspection. Instead, you can upload pictures of your vehicle’s interior, exterior, VIN, and odometer to determine its value and final loan amount.
  6. Send in your vehicle title
    The final step is to send in your vehicle title. The lender will maintain the title until you pay the loan in full. Fortunately, most online title loans don’t have a prepayment penalty. This means you can repay the loan early if possible.


Can You Guarantee Title Loan Approval?

No one can guarantee title loan approval. If a lender offers guaranteed approval, it is likely a scam. Lenders must underwrite your loan and determine that you can afford it and that the vehicle you’re using as collateral is valuable enough.

Does Your Credit Score Matter for Online Title Loans?

Car title loan lenders do a credit check but don’t use your credit score to determine if you qualify for an auto title loan. They usually look at the big picture, focusing mostly on whether you can afford the repayment of the secured loan and the value of your car.

What are the Benefits of Guaranteed Title Loans?

Guaranteed title loans often have lower interest rates than payday loans; they offer monthly payments that fit your budget and fast approval. If you need emergency funding, cash title loans can be a good option if no other options exist, like borrowing from family or using your savings.

Final Thoughts

Guaranteed title loan approval isn’t possible because lenders must do their due diligence to ensure you can afford the loan. However, title loans are often easier to secure than other bad credit loans because they use your car as collateral.

Compare your options for bad credit loans and choose the one that offers what you need, including quick cash, affordable monthly payments, and instant approval. Use our user-friendly title loan calculator to estimate your payments and total interest paid. 

If you want a title loan, consider applying at Montana Capital Car Title Loans for a quick and easy process.

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.