How much cash can i get
Find out now. It's fast, secure & free!
Title loans can help you borrow money fast during a financial emergency. Use your vehicle’s title as collateral for quick access to cash, even with bad credit. Are they the right choice for you? Find out now!
Title loans use your vehicle’s value as collateral. If approved, you give your title to the lender, and they hold it while you keep driving your car and repaying the loan.
Title loans focus on your ability to repay (proof of income, such as pay stubs, disability pay, retirement or unemployment income) and your vehicle’s value. Your credit score is only one contributing factor, and bad credit is okay. Also, as long as you meet the terms of your loan, it won’t affect your credit score.
However, remember that title loans have high interest rates and should only be used for emergencies. If you miss your payments, the lender may repossess the vehicle. Before you sign a car title loan agreement, the lender must tell you the loan’s total cost in writing so you can ensure you can afford it.
Let’s learn more below.
- What Is a Car Title Loan and How Does It Work?
- In a Nutshell:
- How Much Will a Title Loan Cost Over Its Lifetime?
- Title Loans Are Expensive – Title Loan Examples
- Loan Requirements by State
- Online Title Loan Tips and Tricks
- How Title Loans Work?
- Advantages and Disadvantages of Car Title Loans
- Alternatives to Title Loans
- How Car Title Loans Work FAQs
- The Bottom Line – When Should You Get a Title Loan?
What Is a Car Title Loan and How Does It Work?
A title loan, or auto equity loan, is a secured loan that uses your car’s equity as collateral. You give up your car’s title until you pay the loan off in full, but you keep the car and can drive it while making payments.
Borrowers can typically get 25% – 50% of their vehicle’s value, up to $50,000, as long as they prove they can afford repayment.
Here’s how they work.
Qualifying and Eligibility Requirements
Some applicants are surprised that they may be able to qualify even with bad credit, but they shouldn’t be! Car title loans are intended for bad credit score and bad credit history borrowers who needs funds fast, within 5 hours in some cases. While some requirements vary by lender, here is what you can expect:
- Be at least 18 years of age
- Your name must be on the title
- Own the car without any liens
- Provide proof of income
- Provide vehicle photos
- Vehicle must have enough equity
- Proof of insurance (some states)
- Character references (some states)
The Title Loan Process
If you’re ready to apply, follow these 4 quick and easy steps.
- Complete the lender’s application online or in store
- Provide the lender’s required documentation
- Review and sign the loan agreement
- Receive funds and start making payments on the loan
Auto equity loan amounts vary by state law and specific lender guidelines. In general, car title loan lenders offer 25% – 50% of an applicant’s vehicle value. Of course, some states regulate minimum and maximum loan amounts, so be sure to check with your lender and review your specific state’s guidelines.
It isn’t free borrowing a loan. Title loans are very expensive, charge fees, like origination or processing fees, plus interest. These vary depending on the lender and your state’s law, but some lenders can charge APRs up to 300%.
Title loans are short-term loans that range from 1 to 36 months. You make monthly payments that include principal and interest. Car title lenders may require payments 1 of 2 different ways.
- Single-payment – The amount you borrowed plus interest due in one lump sum.
- Installment loan – Fixed monthly payments for the term.
Title loans are illegal in some states, while others have strict requirements. Car title loan lenders must follow each state’s specific laws.
In a Nutshell:
Each state has different title loan laws and requirements, but they have much in common. Title loans are use your vehicle title as collateral, so you can keep and drive your car, and interest and fees are higher-than-average, so missing payments could put you at risk of repossession. Because of this expense and risk, title loans should only be used in case of emergency, and other options like personal loans should be considered first.
Title Loans Lender Tips
This is a complete guide will help you understand what a title loan is, how to get a car title loan all the way to how does a title loan work.
How Much Will a Title Loan Cost Over Its Lifetime?
How much auto equity loans cost over their lifetime depends on many factors. These including:
- Loan length – The longer the loan term, the more interest you’ll pay, which increases your lifetime costs.
- Fees – Title lenders charge fees like processing, DMV lien transfer, and sometimes origination fees.
- Interest rate – The higher the interest rate, the higher the cost of the loan.
Title Loans Are Expensive – Title Loan Examples
The longer you pay on your auto equity loan, the more money you will end up paying. Our company doesn’t charge prepayment penalties. Therefore, if you have the funds to pay off your title loan early, we encourage you to do so! See how early prepayment can make a difference below.
Early Prepayment Can Make a Huge Difference
|Examples||2018 Toyota Camry||2020 Chevrolet Equinox|
|Title loan Amount||$3,450.00||$7,500.00|
|Loan Term||24 Mo.||36 Mo.|
|Monthly Payment Amount||$275.00||$450.00|
*All our repayment plans are without any hidden fees or prepayment penalties.
Paying Off a Loan Ahead of Schedule Example – Save $2,000
If you own a 2018 Toyota Camry, and get a loan for $3,450, the loan would cost you $3,240 by the end of a 24 month term.
$275 monthly payment x 24 months = $6,600
$6,600 – $3,450 loan amount = $3,150
$3,150 + ($75 + $15) fees = $3,240 If you came up with the remainder of the loan balance early, you can choose to pay it off early without penalty. In this case, the payoff balance after 6 months is $2,976 bringing your total loan cost to $1,266.65. That is almost $2,000 in savings!
Disclosure: Not all applications are approved. Approval is dependent upon specific underwriting criteria and the applicant’s ability to repay and credit history. Other restrictions may also apply.
Loan Requirements by State
Auto equity loan requirements vary by state, but most lenders require proof of vehicle ownership without any liens, a car with adequate value, proof you can repay the loan, and proof of residency. Some states also require proof of insurance and character references.
Online Title Loan Tips and Tricks
Consider these tips if you’re considering a car title loan:
- Compare lenders – Don’t settle for the first lender you find. Get quotes and read reviews from multiple title lenders to ensure you get the best deal and a reputable title lender.
- Use a car title loan calculator – A title loan calculator can help you see your monthly payment based on how much you borrow and the total interest costs for different loan terms.
- Pay early to save money – If your lender doesn’t have prepayment fees or penalties, pay off your loan early to save money on interest.
- Use a cosigner – If you don’t make enough to qualify for the loan, consider adding a cosigner to improve your approval odds.
How Title Loans Work?
Apply online and get preapproval answer in a matter of minutes. If your application and documents are reviewed and finalized by 2:00 PM your lender’s time, you may receive funds the same day!
The Process Is Similar to What We Mentioned Above
Here is what to expect:
- Apply – Our fast and easy application process takes less than five minutes to complete and requires some personal and vehicle information.
- Submit documentation – Pre-approved applicants can submit their documentation to the online portal. These include:
- Proof of income – pay stubs, bank statements, severance pay, etc.
- Proof of identity – Government-issued photo ID
- Vehicle photos – Interior, exterior, VIN
- Sign and receive funds – Review the loan’s terms and sign the agreement. Funds are usually paid out within 1 business day of final approval.
- Repay – Make payments according to your loan agreement. When the loan is paid off, We will return your vehicle’s title.
How Much Can You Get for a Title Loan?
In the broader title loan industry, lenders generally offer loan amounts up to 50% of your car’s value and up to $50,000. However, our company provides a bit more flexibility with loan amounts ranging from $2,600 to $20,000, or up to 70% of your vehicle’s value. The amount you can borrow to get fast cash depends on several factors, including the following:
- How much your car is worth
- If you own the car outright
- Ability to pay back the loan
Advantages and Disadvantages of Car Title Loans
Car Title Loan Advantages
- Receive funds fast
- All credit can apply
- 100% online application
- Continue driving your vehicle
Car Title Loan Disadvantages
- Risk of repossession
- Can increase debt
Alternatives to Title Loans
Before you apply for online title loans, consider the available alternatives and consider exhausting these options before using your car as collateral.
Negotiate Your Current Debts
If you cannot get out of the cycle of debt and are looking for a solution, negotiate your current debts with your creditors. You might be surprised to learn how many are willing to work with you if you ask.
Friends or Family
Your friends or family may be willing to help you get back on your feet. With this option, you might avoid interest and fees, paying back only the amount you borrowed.
Credit cards are high-interest loans like auto equity loans. Depending on how much you need, you can charge the emergency on your credit card and pay it back in a lump sum or in installments each month.
Personal loans are unsecured loans that often have stricter requirements than title loans. Banks and other private lenders offer personal loans, and while you might pay lower interest rates, you usually need good credit and a low debt-to-income ratio to qualify.
Public Assistance Programs
How Car Title Loans Work FAQs
What Does “Title” Mean in Title Loan?
“Title” references the legal document that shows ownership of the vehicle. When a title lender funds a loan, they keep the title as collateral until you pay the loan in full.
What if I Can’t Pay Off My Title Loan?
Failure to pay your auto equity loan back can result in your vehicle being repossessed. If you can’t afford your payments, contact your lender immediately. You may be eligible to roll over the loan into a new car title loan with the same or a different lender.
Will My Car Be at Risk of Repossession?
As collateral for the loan, the lender may repossess your vehicle if you don’t make your loan payments.
Can You Get an Auto Title Loan Without a Title?
You must have a title with your name on it to secure a loan against your car’s title. It’s okay if there is another name on the title, but if the title has an ‘and’ between the names on the title, both parties must apply for the loan. An exception to this rule is a title loan refinance because a lender may already have your title.
How Do I Find the Title Loan Value of My Car?
Using tools like Kelley Blue Book or Edmunds, you can get an idea of your car’s market value. Provide accurate information about the car’s condition, mileage, and features to get a precise value. Once you know your vehicle’s value, calculate 50% to 70% of its value to get a ballpark idea of what you could receive.
Does a Title Loan Affect My Credit Score?
Auto equity loans don’t typically affect your credit scores. Being a secured loan, most lenders don’t report it to the credit bureaus. However, if you miss too many payments, the collection agency that buys your loan may report the negative information.
Will Title Loan Lenders Use GPS to Track My Car?
Some title loan lenders may use GPS to track the location of the vehicle used as collateral for the loan. This is generally done as a security measure in case of default on the loan, making it easier for the lender to locate and repossess the vehicle if necessary. However, not all lenders do this, and the use of GPS tracking may depend on the specific terms of your loan agreement and local regulations. Always make sure to read your loan agreement thoroughly and ask your lender about their policies.
*We may install a GPS tracking device for the duration of the loan. This doesn’t slow down the approval process, and you can get the GPS installed at approved facilities.
What Are the Title Loans Rates and Fees?
Title loan rates and fees can vary, but common costs include:
- Interest Rates: Often high, ranging from 25% per month (300% APR) to over 100% APR.
- Fees: These may include origination fees, title charges, lien fees, processing fees, and late fees.
- Insurance: Some lenders may require additional insurance on your vehicle.
Always ask for a full disclosure of all costs before agreeing to a title loan.
We charge interest rates between 60% to 175%, and fees vary by loan amount and state requirements. Currently, we have a processing fee of $75 and a lien recording fee of $15.
How Can I Get My Title Returned?
The last step is loan closure. Assuming you’re repaying according to your title loan contract, your loan will be closed with your last repayment.
After paying back your loan, we’ll send you your title, lien-free. In some circumstances we may return a lien-release form instead of the signed-off title.
What You Offer?
Montana Capital Car Title Loans Offer:
- Loan Amount: From $2,600 – $20,000
- Term of loan: 12- 36 months
- Range of average rate: 60% – 175% Annual Percentage Rates (APR)
- Type of interest rate: Simpe Interest
- Credit rating: Good credit, Bad credit, No credit – in many cases
- Payment Methods: Debit Cards online and Over the Phone, Cash (accepted in any 7 Eleven Store)
- No penalties for prepayment
- No hidden fees
- All pursuing to CA Financing Law: License No. 603F508 – California’s DFPI
- Your personal details are secure
- Simple online application process
- Keep your car and drive it
- Customer service: 6 days/week
- *If needed: Assistance available for transferring the title to your name
- *If needed: Assistance available for registering out-of-state titles
The Bottom Line – When Should You Get a Title Loan?
Knowing how auto equity loans work can help you maximize your vehicle’s equity during an emergency and get a personal loan at the same day. However, It’s always best to exhaust all alternatives and carefully review lenders to ensure you choose the best option for your financial situation.
Car title loans should only be used when you have no other options or for an extreme emergency. The interest rates are high, so applying for a loan on your car’s title shouldn’t be taken lightly. If you have questions or need more information about our loan process, contact us to talk with a representative or visit our FAQs page. If you’ve decided that a car title loan is the best option for you, our service offers a fast and easy application process that provides quick responses. Our entirely online process can be completed in just a few hours. Once approved, you may receive your funds either on the same day or within one business day.