Title Loans Requirements – How to Meet Approval Criteria

When you need money fast, it can be overwhelming. A title loan may be the answer if you own a car lien-free and it has enough value to cover your loan. Depending on your vehicle’s value, you can borrow up to $20,000, and get fully approved in a day or less while you continue driving your vehicle.

You will always get to drive your vehicle for the duration of the loan, as long as you are making your monthly payments on time. The main advantage of a title loan is that almost anyone with bad credit can be approved and get instant fast cash!

To get approved, you must meet the title loan requirements, which are much more relaxed than traditional bank loans. However, we recommend only using title loans in emergencies because they come with higher interest rates and cost more in the long run. 

While title loan requirements are fairly consistent across states, there are a few differences to highlight.

What Are Car Title Loan Requirements

Car title loan requirements are simple, but there are criteria that must be met. Here is common criteria required by most title loan lenders to qualify:

• Lien-free car title – Your vehicle title must be lien-free and in your name, meaning that you are the owner and there are no outstanding loans on the car.
• Valid identification – You must have a current state-issued photo ID to prove your identity and, in some cases, your residency.
• Residency in the state you’re applying – Title loans aren’t legal in all states. Some states require that you prove you live in the state you’re applying.
• Adequate income – You must prove you have enough income to repay the loan. This doesn’t need to be employment income; it can be from many sources.
• Vehicle insurance – Some states require car insurance to get a car title loan. Even if this isn’t required in your state, car insurance is required to drive in most states.
• No current bankruptcies – A past bankruptcy doesn’t disqualify you from a title loan; however, any current bankruptcies not discharged will.
• Other title loan requirements may be needed from time to time, based on a case by case scenario.

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To determine how much you can borrow, you must know how much equity you have in your car. You can use Kelley Blue Book to assess your car’s estimated value. If you don’t have any outstanding loans, you can borrow 25% – 50% with most lenders and with Montana Capital, up to 70% of that amount, as long as you meet other requirements, such as income. However, if you have an outstanding loan on your car and it’s not fully paid off, we may use the title loan proceeds to pay it off first, and then you receive the difference.

Differences in Car Title Loan Requirements by State 

State	Title Loan Requirements
Alabama	State-issued photo ID Lien-free title in your name Alabama residency Adequate income to repay the loan19 years or older Minimum loan of $100
Arizona	State-issued photo ID Lien-free title in your name Arizona residency Adequate income to repay the loan18 years or older Minimum loan of $100
California	Car value greater than the loan amount State-issued photo ID Lien-free title in your name California residency Adequate income to repay the loan18 years or older Minimum loan of $2,500
Delaware	State-issued photo ID Lien-free title in your name Delaware residency Adequate income to repay the loan18 years or older Minimum loan of $100
Florida	State-issued photo ID Lien-free title in your name Florida residency Adequate income to repay the loan18 years or older Minimum loan of $500
Georgia	State-issued photo ID Lien-free title in your name Georgia residency Adequate income to repay the loan18 years or older Minimum loan of $100
Idaho	State-issued photo ID Lien-free title in your name Idaho residency Adequate income to repay the loan18 years or older Minimum loan of $100
Illinois	State-issued photo ID Lien-free title in your name Illinois residency Adequate income to repay the loan18 years or older Minimum loan of $100
Kansas	State-issued photo ID Lien-free title in your name Kansas residency Adequate income to repay the loan18 years or older
Kentucky	State-issued photo ID Lien-free title in your name Kentucky residency Adequate income to repay the loan18 years or older
Louisiana	State-issued photo ID Lien-free title in your name Louisiana residency Adequate income to repay the loan18 years or older Minimum loans of at least $350
Minnesota	State-issued photo ID Lien-free title in your name Minnesota residency Adequate income to repay the loan18 years or older
Mississippi	State-issued photo ID Lien-free title in your name Mississippi residency Adequate income to repay the loan18 years or older Minimum loan of $100
Missouri	State-issued photo ID Lien-free title in your name Missouri residency Adequate income to repay the loan18 years or older Minimum loan of $100
Montana	State-issued photo ID Lien-free title in your name Montana residency Adequate income to repay the loan18 years or older
Nevada	State-issued photo ID Lien-free title in your name Nevada residency Adequate income to repay the loan18 years or older
New Hampshire	State-issued photo ID Lien-free title in your name New Hampshire residency Adequate income to repay the loan18 years or older
New Mexico	State-issued photo ID Lien-free title in your name New Mexico residency Adequate income to repay the loan18 years or older Minimum loan of $100
Oregon	State-issued photo ID Lien-free title in your name Oregon residency Adequate income to repay the loan18 years or older Minimum loan of $100
Rhode Island	State-issued photo ID Lien-free title in your name Rhode Island residency Adequate income to repay the loan18 years or older Minimum loan of $100
South Carolina	State-issued photo ID Lien-free title in your name South Carolina residency Adequate income to repay the loan18 years or older Minimum loan of $2,500
South Dakota	State-issued photo ID Lien-free title in your name South Dakota residency Adequate income to repay the loan18 years or older Minimum loan of $100
Tennessee	State-issued photo ID Lien-free title in your name Tennessee residency Adequate income to repay the loan18 years or older Minimum loan of $100
Texas	State-issued photo ID Lien-free title in your name Texas residency Adequate income to repay the loan18 years or older Minimum loan of $100
Utah	State-issued photo ID Lien-free title in your name Utah residency Adequate income to repay the loan18 years or older
Virginia	State-issued photo ID Lien-free title in your name Virginia residency Adequate income to repay the loan18 years or older
Wisconsin	State-issued photo ID Lien-free title in your name Wisconsin residency Adequate income to repay the loan18 years or older Minimum loan of $100

*Additional information and research from the following sources:

• https://consumerfed.org/

Required Auto Title Loan Documents

Now that you know what’s needed to qualify, here are the required documents to complete the approval process with us:

• Title loan application – To borrow money from your vehicle’s title, you must complete an application online. It takes a few minutes to complete, and you get a pre-approval decision quickly.
• Valid Government-issued ID – Provide a copy of your current driver’s license, passport, or state photo ID to prove your identity.
• Lien-free car title – Your title loan provider will provide instructions on how to submit your car’s title for final approval and funding.
• Pictures of the vehicle – Most lenders need clear photos of your car’s interior, exterior, VIN, and mileage.
• Proof of income – Proof of income shows you can repay the loan. This includes pay stubs, bank statements, unemployment benefits, Social Security statements, or proof of disability income.
• Proof of bankruptcy discharge – If you’ve filed for bankruptcy in the past, you must prove it is not current and has been dismissed or discharged.
• Proof of insurance – Some states require insurance coverage before being approved for a title loan.
• References – Some states require character references from 2 or more people; these can be professional or personal.
• Proof of residency – You may need to submit a utility bill, bank statement, or another official bill to prove your residency

How Do Title Loans Work?

Generally speaking, title loans are part of a broad category of emergency loans. There are various types of title loans, including Car title loans, Motorcycle title loans, RV title loans, and Commercial truck title loans. Basically, a title loan is a secured loan where you can use your vehicle as collateral on the loan in exchange for cash from a finance company. The finance company will then place a “lien” (lienholder) on the vehicle’s title. Once the loan is paid off in full the lien will be removed, and the vehicle’s title will be returned to you. Unlike auto pawn loans, you will get to keep driving your vehicle as long as you are making payments on time.

Borrow 25% – 50% of the Value of Your Vehicle

Auto title loans are a short-term loan option secured by your vehicle’s title. That is why borrowers can have less-than-perfect credit and get approved. If approved, your ability to repay and the car’s value will determine how much you can borrow. On average, lenders allow you to borrow 25% – 50% of the value of your collateral, but at Montana Capital, we lend up to 70% of the car’s value up to $20,000.

Payments, Rates, and Fees

When you sign the title loan agreement, you are responsible for repaying the loan in full by the end of the loan’s term. You’ll make monthly payments with a fixed interest rate, and it depends on the loan amount, interest rate, and fees.

According to a report from Pew Charitable Trusts, common APRs on title loans can be as high as 300%, but with our company, you can expect your interest rates to fall between 60% – 175%, plus any applicable fees. However, we never charges a prepayment penalty, so you can repay the loan as soon as you’re able. You don’t have to wait for the end of the loan. If you are able to pay your loan early, we recommend you do so to avoid high future payments.

Costs Example

Here are two examples of expected costs for vehicles of different ages, types, and loan amounts. 

	2018 GMC Sierra 1500	2016 Toyota Tacoma
Vehicle Value	$16,000	$12,000
Title Loan Amount	$5,000	$3,000
Monthly Interest	5.50%	6.80%
APR	65.94%	81.56%
Loan Term	24 months	36 months
Fees	$90	$90
Monthly Payment Amount	$380	$220
Total Cost of the Loan	($380 x 24) + $100 = $9,220	($220 x 36) + $100 = $8,020

Lender Tip – Beware of Illegal Junk Fees

The CFPB issued a supervisory report in March 2023 regarding junk or hidden fees some title loan lenders include in the loan. These include but are not limited to processing fees, repossession, property retrieval, and other fees not disclosed in the original loan agreement.

Main Factors to Determine Your Title Loans Qualification

When applying for a title loan, the following are the primary factors of approval:

1. Ability to repay the loan – You should only borrow what you are able to repay. You don’t want to be in a situation where you can’t make your payments. Lenders require proof of income to ensure that you have enough funds to afford the loan. That income can come from a job, settlement, social security, and more. 
2. The vehicle’s equity – Equity is how much your vehicle is valued at right now in its current condition. Since your vehicle is the collateral for the loan, if it doesn’t have enough equity for the loan amount you want, it becomes too much of a risk for the lender. 

Red Flag – Lenders With Too Few Requirements 

You’ve heard the saying, ‘If it sounds too good to be true, it probably is.’ That is the case with predatory lenders. Watch for red flags and listen for keywords such as ‘guaranteed approval’ or ‘no documentation required.’

Neither of these is possible with a legit title loan lender. If a lender has too few requirements, they may be planning a bait-and-switch scheme where you’re actually getting something like a payday loan with higher interest rates and worse terms, or they may require unnecessary things like extra insurance.

How Online Title Loans Work?

The entire process of applying online for a title loan is simple. Plus, if you need help or have any questions, you can call us at 1-888-700-8900, and a title loan agent will walk you through the process.

1. Quick and simple online application – The online application process takes only a few minutes. You’ll know quickly if you’re approved and if so, for how much.
2. Submit required documentation – If you choose to move forward, you must submit the required documents mentioned above to prove that you can repay the loan, your car has enough of value, and you meet all of the qualifying criteria.
3. Review and sign the loan agreement – After submitting all documentation, you’ll receive a loan agreement from your title loan representative. Review the terms and sign the agreement to receive your funds!

Car Title Loans Online Example

Here’s a quick example of how you can apply online and secure a title loan with our title loans service:

John owns his car lien-free. He has a major unexpected home repair to pay for, but he doesn’t have the cash. After checking online, his car is worth $15,000, but John doesn’t have great credit, so he can’t get a personal loan from his bank.

John doesn’t have friends or family to lend him money, so he decided to borrow cash from his car and repay it as quickly as possible.

John starts by completing the Our online application. He provides all the necessary information, including his personal identifying information, car information, and his two character witnesses.

John receives his pre-approval within minutes and chooses to move forward. Because his car is worth $15,000, he can borrow up to $10,500. Because his emergency cost $8,000, that’s all he will borrow.

John receives a quote for a 75% interest rate and a 12-month term. His monthly payment is $967.34, and he pays an origination fee to cover the cost of processing the loan.

John immediately provides all the necessary paperwork to complete the process. He received his final approval, but it was after 2 PM on a Tuesday, so John received his money the following business day via direct deposit.

Car Title Loan Pros and Cons

Pros

• You can borrow up to 50% of your car’s value (70% with us)
• Flexible approval criteria and process
• Funding available in as little as 5 hours to 1 business day
• You can complete the entire application online
• No early termination fees for paying the loan off early
• Continue driving your vehicle while making payments

Cons

• Title loans have higher interest rates compared to other loans
• Some states have strict requirements for title loan lending

Consider All Options

Title loans are risky, and there are other options available to explore. Here are a few to consider

• Friend or family loan – Consider asking those close to you to help you with your unexpected expense.
• Credit card – If you have room on your credit card, you can put the recent expenses on your credit card.
• Pawnshop – A local pawn shop may loan you money in exchange for collateral.
• Private loan – You can apply for a private personal loan on peer-to-peer lending sites.
• Home equity loan – If your home’s value is higher than what you owe on it, you may borrow against the home’s equity.
• Request a payment extension – If you’re behind on bills, your creditors may extend the due date or offer a payment arrangement.

Compare rates among title loan lenders – If you need cash fast, compare rates from different title lenders to get the best one.

Title loans often tend to carry higher interest rates than most traditional bank loans. So, it is important to consider other alternatives before getting a title loan. If you do not qualify for a traditional bank loan, a title loan might be a good option for you to consider.

Title Loans Requirements FAQs

Vehicle Title Loan Requirements – The Bottom Line

For more than 16 years, we has been helping our consumers across US. Our number one priority is to find a way to help anyone take advantage of title loans.

The requirements for a title loan are much more relaxed than other traditional loan options. If you need cash fast, you can tap into your car’s cash, depending on your car’s current market value and your ability to repay the loan. Title loan applications are easy to complete, you can complete the entire process today or the next business day if all requirements are met.

These basic car title loan requirements needed to be approved for a loan against your car title and any other type of title loan, but we’re just one phone call away if you need help. We’ll be glad to help you understand the requirements and complete an application as soon as possible. If you need help, and decide whether a title loan is right for you, complete an application online or with a title loan representative at Montana Capital.