Title Loans Requirements

Understanding the Title Loan Requirements

In order to understand the title loan requirements, it’s important to learn more about how title loans work. Since car title loans are secured loans, a borrower can unlock cash by using their qualifying car, truck, or SUV as collateral for the loan. Although you are using your car’s title to guarantee the loan and secure emergency funding, you are allowed to hold on to your car keys and keep driving your vehicle while you pay off your loan.¹

Your ability to access funding through a title loan is largely dependent on your income and the value of your vehicle, along with other factors, such as your state of residence and your lender’s maximum loan-to-value ratio. Generally, the loan limit for a car title loan is up to half of the qualifying vehicle’s value.¹

Below is a list of the requirements you’ll need to meet to qualify for a loan against your vehicle:¹

• Vehicle Requirements: The vehicle must be paid off or almost paid off, and the borrower must have the vehicle’s title in their name at the time of their application. A car inspection is required to verify the current value and overall condition of the vehicle, but this evaluation can take place online.¹
• Age and Location Requirement: Prospective borrowers must live within the service area of the lender or loan servicer and be of legal age to submit an application for a car title loan.¹
• Income Requirement: A borrower is required to demonstrate their ability to repay the loan during their loan request by providing acceptable documentation, such as recent pay stubs or bank statements.¹

Your vehicle does not need to be a specific make or model to qualify as collateral for a title loan. Whether you have a Honda Accord, Ford Ranger, or another eligible vehicle, applying for a ChoiceCash title loan serviced by LoanMart can be a breeze! Submit a short questionnaire online or call 855-422-7402 to see if you meet the requirements for a title loan!¹

Key Takeaways of the Car Title Loan Requirements

1. Car title loans are not available in every state. To check if you are able to apply for a ChoiceCash title loan in your state of residence, visit ChoiceCash’s location page.¹
2. A vehicle with sufficient positive equity is required to secure the loan.¹
3. A perfect credit score is not required to obtain approval because title loans typically have less stringent credit requirements than traditional bank loans.¹

Documents Required for a Title Loan

If you are initially approved for a title loan, you’ll typically be asked to provide the documentation listed below to verify your information:¹

1. Proof of Income: As mentioned above, one of the most important qualifications for a title loan is your ability to repay the loan, which is why you must provide proof of income. While many applicants will submit recent bank statements or pay stubs from an employer, other documentation can be accepted, such as Supplemental Security Income (SSI) statements or a workers’ compensation award letter.
2. Vehicle Title: This is the most important document required during a title loan application. If your application is fully approved and the loan is funded, the lender will place a lien on your car’s title.¹ After you’ve made the final payment on your loan, the lien is released.
3. Vehicle Photos: To complete a virtual vehicle inspection, you can submit recent pictures of the interior and exterior of your vehicle. Make sure that your photographs are taken recently and have good lighting to accurately reflect the condition of your vehicle.¹
4. Proof of Residence: Recent utility bills, phone bills, credit card statements, and other acceptable documents can be used to verify your current address.¹
5. Valid, Government Issued Photo ID: You will not be able to get a loan without providing proof of identification. In order to verify your identity and age, you can submit a U.S. passport, driver’s license, permanent resident card, or another valid, government-issued photo ID.¹

When applying for a ChoiceCash title loan serviced by LoanMart, the photographs of your vehicle and your documents can be conveniently submitted online or sent to a loan officer through email or text message.¹

Understanding Title Loan Rates and Fees

The interest rate of a loan may vary depending on the lender you work with, your credit history, and your state of residence. The average Annual Percentage Rate (APR) for a title loan is around 300%, according to the Federal Trade Commission. APR is the standardized expression for the total cost of borrowing money throughout a year and includes the interest and any applicable fees that borrowers are obligated to pay when securing a loan. The lower the APR of a loan, the less you’ll pay in interest over the life of the loan. When evaluating the total cost of a title loan, it is important to consider any potential fees related to the loan and familiarize yourself with the applicable terms and conditions.

Some of the most common fees for title loans include the following:

• Loan Origination Fees: This fee is a one-time charge to process a borrower’s loan.
• Late Fees: If you fail to make a payment on your loan, a lender or loan servicer may charge a late fee. While late fees typically range from $25-$50, some could be lower.
• NSF Fees: If your bank account lacks the necessary amount of money needed to cover your loan payment, the bank will not allow the transaction to go through. This may result in an NSF fee, otherwise known as a nonsufficient funds fee or a return payment fee.

Title Loan Repayment Options

The repayment terms for short-term title loans typically range from 30-60 days, although they can vary depending on the borrower’s state of residence and their chosen lender or loan servicer. Since different lenders can offer different loan terms, it is important to shop around and find a title loan company offering the most advantageous terms that suit your financial goals and current needs as a borrower.

Borrowers who are eligible for ChoiceCash title loans serviced by LoanMart can have flexible repayment terms to repay their loans. From setting up automatic payments through the online customer portal to paying in person at a participating money transfer location, ChoiceCash title loan borrowers have access to a variety of repayment options and can easily choose the most convenient method available to pay back their loans.¹

During the repayment process, it’s important to manage your title loan payments and keep your loan in good standing. Defaulting on your title loan may lead to the lender repossessing your vehicle, so your priority should be to create an effective budget and center it around your title loan payments and other necessities. One of the ways you can make the repayment process as streamlined as possible is to set up automatic payments from your bank account, so you can skip the hassle of manually repaying your loan each month.

Title Loan Requirement FAQs

If you are considering applying for a title loan, you may have additional questions about the title loan requirements. Below are some of the most frequently asked questions about title loans and the title loan qualifications that borrowers must meet in order to be eligible for funding:¹

Do Title Loans Affect Your Credit?

Yes, title loans can positively or negatively impact your credit score if your lender or loan servicer reports your payment behavior to the major credit bureaus.

Do I Have to Be Employed to Get a Title Loan?

No. As long as you can demonstrate your ability to repay the loan without a traditional pay stub, you don’t need to be employed to qualify for a title loan. As mentioned in the title loan requirements above, you can provide an alternative source of income during your loan request, such as workers’ compensation award letters, retirement income statements, or SSI statements.¹

How Long Does it Take to Get Approved for a Title Loan?

Generally, the application process can be quite fast and efficient! If you meet the necessary title loan qualifications and provide the correct documentation, it is possible to get approved and funded the same day you apply.¹

Is a Bank Account Required to Get a Title Loan?

If you can prove your income without bank statements and you do not want to receive your funds via direct deposit, you don’t need an active checking or savings account to qualify for a title loan.¹

Even if you have bad credit, the application process for a ChoiceCash title loan can be simple and streamlined! If you have any other questions about the title loan requirements, visit ChoiceCash’s FAQ page or dial 855-422-7402 to speak with a loan officer directly! To find out if you are eligible for instant pre-approval, complete a short questionnaire online now.¹