7 Tips On Maximizing A Title Loan

Whether you need a fast loan to launch a new business, cover some unexpected expenses or any other reason, finding a quick lender is no walk in the park. The process can take weeks or months and cause a ton of stress and work. You have a lot on your plate already that worrying about getting a loan approval quickly should not be the big hassle that it typically is.

To help alleviate some of this stress and get a fast loan, you could look at getting a title loan, instead of a more traditional personal loan.

What Is A Title Loan?

A title loan is a secure lending opportunity where the borrower uses their car title as collateral. In other words, the borrower temporarily gives the ownership of their car to the lender. Once the loan is paid, the title moves back to the borrower’s hands. The upside to car title loans is that they are often easier and faster be approved for, even if you have bad credit.

Naturally, there are some downsides to car title loans as well. You need to really understand how to maximize your title loan and what sort of lender to look for to have the best borrowing experience possible. These 7 tips will help you get the right title loan from the best car title lender in your area and still drive your car.

1: Research the lender and check for borrower complaints

Before you sign or initial any papers (really before you even bother calling or visiting a lending office), you want to be absolutely certain that you’re dealing with a reputable lender. Luckily, a quick Google search can tell you everything you want to know about a lender’s reputation; you’ll even find complaints from past borrowers. The last thing you want is to be roped in with a lender that has a history of issues with customers.

Researching the lender ahead of time will give you all the information you need for a great title loan process.

2: Check your vehicle against the lender’s approved list

Every title loan lender has different parameters on the types of cars they’ll accept. These parameters include things like mileage (some lenders will only accept cars with under 100,000 miles), model year (many lenders will only take new vehicles made in the last ten to fifteen years) and even the make/model of the car.

3: Determine your payment schedule

As with any loan, you should have a clear idea of how long the loan will take you to payback and how much interest you’ll accumulate during your borrowing time. Ideally, you want to pay the loan back as quickly as possible, as you’ll have to pay less interest, but a shorter loan period means bigger monthly payments. You have to find the right balance between a comfortable monthly payment and a short payment period. This will help you pay less on your car title loan.

4: Ask if there are any repayment penalties

While you want to pay the least amount of money on your car title loan, the lender would like to have the opposite happen. Some loan providers have stipulations in place that prevent you from repaying your loan in a short period of time. This helps ensure that you pay them ample interest. They’ll actually penalize you for paying early!

5: Check that your lender can operate in your area

If you’re going the route of an online lender, you want to be absolutely certain that they have the right license to operate in your state. Each state has its own guidelines and regulations regarding title loans, particularly when dealing with online lenders. Getting involved with a lender that doesn’t have the right license(s) for your state could create legal penalties and terrible issues for you and your money.

6: Ensure that you can still drive your vehicle during the loan period

This is the most make-or-break issue when it comes to title loans. Every title loan lender handles this aspect differently. Some lenders will impound your car for the lifespan of the loan. Others will require a tracker be placed in the vehicle to measure mileage and location. If you need the vehicle for work and transportation, then you need a title lender like www.TFCTitleLoans.com that won’t ask you to give up your vehicle during the loan.

7: Ask about refinancing options

Even if you feel 100% certain that you won’t have to refinance your title loan, it’s still a smart idea to ask before about refinancing options before you sign on the dotted line. You never know what the future holds and your financial situation and stability could change dramatically overnight. Some title loans allow for refinancing to occur, others will lock you into your initially agreed upon payment schedule.


A car title loan is a great choice for anyone that needs money quickly, especially individuals with poor credit. To make the most out of your title loan, you’ll want to follow the 7 steps in this guide.