Car Title Loan Requirements: What It Takes to Borrow via Title Loan

What do you need to get set up with a title loan? Learn the car title loan requirements in this guide to the essentials you need to have before borrowing.

Could you cover a sudden emergency expense of $1,000? 60% of Americans would go into debt if faced with such an expense. If you face an emergency expense, you have options, one of them is a car title loan.

Knowing what the car title loan requirements are before you apply can make the application process easier. It can also improve your chances of getting approved and speed up the application process.

Use this guide to prepare your car title loan application.

Live in the Right State

Before you attempt to get a car title loan, you need to confirm you live in a state that permits them. Some states allow them but put a cap on the interest rate.

Some states have loopholes that allow car title loans. Then other states totally prohibit or heavily restrict car title loans.

Required Documents

To be successful in getting cash through a title loan, you need to gather all of the necessary documents. They will prove your ownership of the car and your identity.

  • Original title showing sole ownership
  • Government-issued ID
  • Proof of residency
  • Vehicle registration
  • Proof of insurance
  • Proof of income
  • Valid references
  • A working copy of the vehicle key

Most lenders will have you fill out an application and provide the necessary documents. They will also want to verify the condition of the vehicle before approval.

Sole Ownership

You need to own your vehicle outright and be the sole owner listed on the title. There can’t be any liens. Upon approval, the lender will place a lien on the car’s title.

Proof of Identity

You need to be able to prove who you are and where you live. Make sure your name on your ID matches your application. Then provide a utility bill with a matching name and address.

Proof of Insurance

The lender will want to know that the return on their loan is safe. This means having the collateral (the car) insured. If there’s an accident and the vehicle is lost, the lender will collect on the insurance payout.

GPS Tracker

Some lenders require a GPS tracker placed in the car. This enables the lender to track down or even remotely shut down the car should the borrower default on the loan.

What You Don’t Need

Because the value of your car secures the loan, the lender isn’t concerned about your credit score. While they want you to repay the loan, if you fail to, the lender can take possession of the car to collect the outstanding balance of the loan.

Satisfy the Car Title Loan Requirements

If you’re facing a sudden emergency expense and you don’t have savings to cover it, then a car title loan may be a solution. Use this guide to gather the required documents and get your application ready.

By meeting all of the car title loan requirements, you give yourself the best odds for approval.

Browse our blog for ideas on how to generate more income and strategies for saving.


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