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Shir Amram

Written by: Shir Amram

A Guide to Car Title Loans in Colorado

Ever found yourself in a financial bind, wondering if your car could be the key to getting the quick cash you need? You're not the only one. 

Car title loans in Colorado have become a popular option for individuals facing unexpected expenses and unable to secure traditional bank loans due to poor credit scores.

Colorado Flag, USA

Colorado, known as the "Centennial State," features a bold letter "C" with a golden circle on its state flag.

Important Update: Colorado residents can still choose to avail themselves of title loans. Although certain states, including Colorado, have imposed limitations on car title loans, particular lenders operating under FDIC jurisdiction may offer title loan programs in select states.

With Montana Capital, you have the opportunity to easily complete an online request form and obtain pre-approval for a car title loan within minutes, all without any commitment.

Benefits of Title Loans

  • Get approved in minutes
  • Bad credit history is not a major issue
  • You may obtain a loan on the same day
  • You can apply for a loan from home
  • Ideal solution for urgent cash needs

Understanding Title Loans in Colorado

Imagine a situation where you need cash urgently, but traditional lenders won’t give you a loan due to bad credit. This is where car title loans come in handy! 

These loans typically offer 25% to 50% of your car's current market value, allowing you to access $100 to $50,000 quickly and easily.

What is a Car Title Loan

A car title loan, also called an auto title loan, is a short-term loan where you use your car’s title as collateral for the funding amount. You hand over your car's title to the lender as collateral until you've repaid the loan completely. The good thing is, you can still keep and use your car while you have the loan.

You should consider using this loan mainly for emergencies because they typically come with high interest rates.

How Title Loans Work

To qualify for an auto title loan in Colorado, you must meet vehicle and income requirements. Unlike traditional loans, car title loans consider your car's value and your ability to repay, as the main parameters for loan approval, not your credit score. This makes it easier for people with bad credit or a history of bankruptcy to get quick cash through the title pledge.

To go through the title lending process, borrowers must have:

  1. A clear vehicle title in their name
  2. Proof of income
  3. Proof of residence
  4. A valid government-issued ID

When applying for auto title loans in Colorado, borrowers must provide written consent to use their vehicle's title as collateral. If the loan isn't repaid, the lender has the right to take the borrower's vehicle and sell it to recover their money.

Ridgway, Colorado

Eligibility Criteria for Colorado Title Loans

To be eligible for an auto title loan, you need to meet specific vehicle and income criteria. These criteria are in place to make sure you can repay the loan on time and to help the lender get their money back if you can't pay. 

To qualify for car title loans in Colorado, you must meet the following conditions:

Vehicle Requirements

Your vehicle plays a crucial role in securing a title loan as it serves as collateral for the loan amount. Here are the requirements your car must meet to qualify for a title loan in Colorado:

  • Your car title must be clear.
  • The title should be in your name.

During the application process for an auto title loan, you will need to provide:

  • A government-issued ID that matches the name on the title.
  • A utility bill or other proof of residency.

Remember, the value of your vehicle determines the loan amount you can secure. Lenders typically offer 25% to 50% of your car's current market value. The more valuable your vehicle, the higher the loan amount.

Income and Employment Requirements

While the vehicle acts as collateral, lenders also want to ensure that you have a stable income source to repay the loan. The income requirements for getting an auto title loan in Colorado vary from lender to lender, but they usually require you to have a steady source of income, like a job, disability benefits, or Social Security.

You don’t necessarily need to have a job to get a car title loan in Colorado - lenders accept other forms of income, like disability benefits or Social Security. The key is to prove that you can afford the loan repayments, regardless of your employment status.

Applying for a Title Loan in Colorado

The process of applying for online title loans is both swift and convenient. 

Montana Capital Car Title Loans offer an online request form that you can complete and submit from the comfort of your own home. If you sign your loan agreement before 2:00 pm your local lender’s time on a business day, you may get your cash in as little as 5 hours!

Online Title Loans Application Process

  1. Apply Online: Begin the process by completing an online form where you provide personal information and details about your car, such as its make, model, year, and mileage.
  2. Submit Car Images: Share images of your car to help with assessment. Capture a photo or video and send it via email, eliminating the need to wait in queues. This entire process takes place online.
  3. Remote Evaluation: The title loan lender conducts a remote review of your request. They consider factors like income, your car's value, equity, and credit history.
  4. Online Approval: If your application meets the necessary criteria, you'll receive approval for the loan. The lender will communicate the amount you can borrow based on your income and car's value.
  5. Receive the Funds: Select your preferred method for receiving the loan – whether it's a direct deposit into your bank account, picking up funds at a branch, or utilizing MoneyGram services at Walmart.

Lender Tip:

When applying for online title loans, make sure to have all the necessary documents on hand. The more information you provide, the smoother the application process will be, and the sooner you can access your funds.

Selecting a Reputable Lender

When considering a title loan, it's essential to make informed choices. This section provides you with the key steps to select a trustworthy and suitable lender for your needs. 

By following these steps, you can ensure a positive borrowing experience and secure the best terms for your title loan.

Here's a Simple Table for Reference:

StepsWhat to Do
1. Check ReviewsLook for good reviews online about the lender.
2. Verify LicenseEnsure the lender has a valid license.
3. Beware of Cheap LoansBe cautious if the lender promises very cheap loans.
4. Read Terms CarefullyUnderstand all the rules in the contract before agreeing.
5. Compare Different LendersCompare terms and rates from different lenders.
6. Ask QuestionsDon't hesitate to ask the lender about any fees or doubts.

Legality and Regulations

When it comes to auto title loans in Colorado, it's essential to grasp the legal framework that governs these transactions. In Colorado, car title loans are governed by the Uniform Consumer Credit Code (UCCC), which outlines the rules and guidelines for such transactions. These regulations are all established by Colorado Revised Statutes 2018, TITLE 5.

The UCCC requires lenders to be licensed by the state and imposes certain restrictions on loan terms, interest rates, and fees. These regulations aim to prevent predatory lending practices and provide borrowers with some level of protection.

Interest Rates and Fees for Colorado Car Title Loans

In Colorado, there are rules about how much interest title loan lenders can charge. It's important to understand these rates, which are calculated monthly, not yearly. 

Here's a Breakdown:

Loan AmountMaximum Monthly Interest Rate
Less than $1,00025%
$1,000 - $3,00020%
More than $3,00015%

These rates might seem high when you calculate them for a whole year, but remember, car title loans are usually short-term, lasting just a few months or even less. 

These rates are meant to help people who have poor credit or who need money quickly. 

Additional Fees and Charges

When getting a title loan, it's important to consider more than just the interest rates. There are additional expenses you should be aware of:

  • Late Payment Fees: If you don't make your payments on time, the lender may charge you extra fees.
  • Repossession Charges: If you can't make your payments and the lender takes your vehicle, they may charge fees for the repossession.

Being aware of these potential fees and including them in your repayment plan is essential for managing your title loan responsibly.

Managing Your Title Loan Responsibly

So you’ve decided to proceed with a Colorado title loan – excellent! 

However, responsible loan management is vital to avoid defaulting and potential loss of your vehicle- repossession.

Repayment Strategies

To handle your title loan wisely, follow these steps:

  • Set Payment Reminders: Use reminders for due dates and ensure you have sufficient funds in your account to cover payments.
  • Stay Organized with Finances: Keeping track of your finances and budgeting effectively helps you avoid late fees and penalties.
  • Consider Early Repayment: If possible, pay off your loan ahead of schedule. This proactive approach saves on interest and allows you to regain full vehicle ownership sooner.

*Most lenders don't charge penalties for early loan repayment.

Dealing with Financial Hardship

When facing financial challenges, having a plan is crucial. If you're having difficulty with your title loan payments, take these steps:

  • Contact Your Lender: Inform the lender of your payment struggles. They might assist you in creating a payment plan or refinancing your loan for better manageability.
  • Seek Professional Guidance: Consider consulting a financial advisor or credit counselor. They can help you develop a strategic debt management plan.
  • Budget Wisely: Evaluate your spending and make a budget to control expenses effectively.
  • Explore Additional Income: Look into ways to increase your income during tough times.

By taking these actions, you can address financial hardships effectively and regain financial stability.

Pagosa Springs, Colorado

Alternatives to Title Loans in Colorado

While title loans can be a helpful solution for emergency funding, they may not be the right choice for everyone. If you’re unsure about getting a title loan, don’t worry – there are other borrowing options available to you.

We’ll now consider some alternative options to car title loans in Colorado.

Personal Loans with Bad Credit

A personal loan is typically unsecured, meaning you don't have to offer collateral. However, because there's no security involved, these loans often come with higher interest rates, especially for borrowers with a low credit score.

They can be used for various purposes, such as debt consolidation, home improvement, or medical expenses, and are usually offered by banks, credit unions, and online lenders.

If your credit history is less than ideal with bad credit, getting approval might be challenging since lenders view you as a higher-risk borrower.

Credit Card Cash Advances with Bad Credit

A credit card cash advance is another alternative to title loans. It’s a short-term loan that you can take out against your credit card. Credit card cash advances are usually available within 24 hours, and you can use the funds for whatever you need.

However, it’s essential to be aware that credit card cash advances come with high interest rates and fees and might affect your credit score negatively. They can be a convenient option in an emergency, but it’s crucial to weigh the pros and cons before deciding to take out a cash advance.

Peer-to-Peer Lending with Bad Credit

Peer-to-peer lending is when regular people lend money to other people on the internet. 

Here's how it goes:

  • 1. Borrowers ask for loans.
  • 2. People who want to lend money can decide to help.
  • 3. A website handles getting the money back from the borrower.
  • 4. The website then shares the money with the lenders.

P2P lending websites are different from banks. They look at more than just credit scores, which can be good for people with bad credit. 

However, remember that the interest rates might still be quite high. The good part is that P2P loans give you more time to pay back the money, so it's not as hard on your wallet.


Understanding car title loans in Colorado can be tough, but having the right info and help can help you make smart financial choices. This is really important because these loans usually have high interest rates and should mainly be used for money emergencies.

By doing this, you'll build a strong base for a better financial future and lower the risks that come with borrowing. 

If you have questions or worries before making any decisions, feel free to reach out to us. We're here to assist you, whether you prefer chatting online or calling us at 800-700-8900.

Frequently Asked Questions

How Do I Get a Title After Paying Off My Car Title Loan?

After paying off your car title loan, the lienholder should mail you the title. Then, take that letter and the title to a Department of Motor Vehicles office in Colorado, and you’ll receive a car title in your name.

Can I Do a Title Transfer Online in Colorado?

Yes, you can complete a title transfer in Colorado online by using eTags and having the necessary documents from the Colorado Department of Revenue.

These documents include the title, proof of insurance, and proof of identity. You will also need to pay the applicable fees. Once you have all the necessary documents and fees, you can submit them to the Colorado Department of Revenue.

How Quickly Can I Get a Title Loan?

You can obtain pre-approval for a Colorado title loan in just a few minutes and may have the loan amount in your hands within a single day. If you sign your loan agreement before 2:00 pm your local lender’s time on a business day, you may get your cash in as little as 5 hours.

What Happens if I Can't Repay My Title Loan?

If you fail to repay your title loan according to the terms of your agreement, the lender has the right to repossess your vehicle. This is because the vehicle serves as collateral for the loan. 

It's crucial to communicate with the lender if you're having trouble making payments to try and work out a solution.

Shir Amram

Written by

Shir Amram

Shir Amram is a senior loan officer at Montana Capital Car Title Loans. With over 10 years of experience in the finance industry, Shir has been an asset in her role and has contributed significantly to our company's success, Shir’s academic background in economics and financial knowledge helps us fulfill our education mission as she creates a valuable content to our blog. 

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