Title Loan FAQ — Frequently Asked Questions

General Title Loan Questions

What is a title loan?

A title loan is a short-term secured loan that uses your vehicle’s title as collateral. You borrow against the equity in your car, truck, or motorcycle while keeping possession of the vehicle. If you own your car outright (no existing liens), you may qualify for a title loan regardless of your credit score.

How do title loans work?

The process is straightforward: you apply with your vehicle title, we assess your car’s value, and you receive a loan offer based on your vehicle’s assessed fair market value. Once approved, you sign over the title temporarily, receive your cash (often same-day), and continue driving your vehicle. You make regular payments until the loan is repaid in full, at which point your title is returned.

For a detailed walkthrough, see our complete guide to how title loans work.

How much can I borrow with a title loan?

The loan amount is determined by your vehicle’s current fair market value as assessed by the lender using Kelley Blue Book or NADA Guides. Loan amounts vary by lender, state, and your vehicle’s condition.

How fast can I get my money?

Eligibility & Requirements

What do I need to qualify for a title loan?

The basic requirements are:

• A vehicle you own outright with a clear, lien-free title in your name
• Valid government-issued photo ID
• Proof of residence
• The vehicle must be in good working condition

See our full title loan requirements page for details.

Can I get a title loan with bad credit?

Yes. Title loans are secured by your vehicle, not your credit score. While some lenders may check credit, approval is primarily based on your car’s value and your ability to repay. Many borrowers with poor or no credit history qualify.

Learn more on our title loans with bad credit page.

Can I get a title loan if I still owe money on my car?

Generally, no. Most title loans require a clear, lien-free title — meaning your vehicle must be fully paid off. If you have a small remaining balance, some lenders may work with you, but this varies by lender and state.

What types of vehicles qualify?

Most cars, trucks, SUVs, and motorcycles qualify. Some lenders also accept RVs and boats. The vehicle should be in running condition, have a clean title, and carry sufficient value to secure the loan amount you need.

Costs & Repayment

What are the interest rates on title loans?

Title loan interest rates vary by state and lender. Rates vary by lender, state, and your approved loan terms. Some states cap rates — always ask for the full APR and total repayment amount before signing.

See our title loan costs and rates breakdown for real examples.

How long do I have to repay a title loan?

Title loan terms vary by lender, state, and loan type — some lenders offer short-term structures while others provide installment options with longer repayment periods. The repayment period depends on your lender, loan amount, and state regulations.

What happens if I can’t make a payment?

Contact your lender immediately if you anticipate difficulty. Many lenders offer extensions or modified payment plans. If you default completely, the lender has the legal right to repossess your vehicle. According to CFPB data, 1 in 5 title loan borrowers lose their car — so having a solid repayment plan before borrowing is critical.

Can I pay off my title loan early?

Most title lenders allow early repayment without penalties. Paying early saves you money on interest charges. Always confirm there are no prepayment penalties before signing your loan agreement.

During the Loan

Can I keep driving my car with a title loan?

Yes — you keep your vehicle and continue driving it normally throughout the entire loan period. You only hand over the title (not the car) as collateral. The title is returned to you once the loan is fully repaid.

Can I sell my car while I have a title loan?

No. Since the lender holds your title as collateral, you cannot sell the vehicle until the loan is repaid in full and the title is returned to you.

Will a title loan affect my credit score?

Most title lenders don’t report to credit bureaus during normal repayment, so a title loan typically won’t help or hurt your credit score. However, if you default and the debt goes to collections, that can negatively impact your credit.

Alternatives

Are there alternatives to title loans?

Yes. Before choosing a title loan, consider these options:

• Personal loans from banks or credit unions (lower rates, but slower approval)
• Credit card cash advances (if available)
• Paycheck advances from your employer
• Community assistance programs and nonprofits
• Borrowing from family or friends

See our complete title loan alternatives guide for more options.

State Information

Are title loans legal in my state?

Title loans are legal in approximately 44 US states, though regulations vary significantly. Some states cap interest rates, limit loan amounts, or require specific disclosures. Check your state’s specific rules on our state-by-state directory.

Where does Loans Inc operate?

Loans Inc connects borrowers with licensed title lenders across 44 US states. Select your state from our state directory to find specific information about title loans in your area.