One of the most accessible loans to find these days are online title loans. With title loans, lenders do not consider your credit score. Instead, your vehicle’s title is issued for the loan to get approved. The title of your car becomes collateral for the loan.

Applying for a title loan online can be a good option if you need instant cash to cover short term expenses. They can also come in handy for borrowers who do not qualify for a cash advance, payday loans and bank loans.  Since the car title is exchanged for the loan, title loans are considered as secured loans.

This makes it easier for people with poor or no credit history to qualify for funding. It is also easier to apply for the loan, with the application process taking as little as 10 minutes. Depending on your state, title loans can also be referred to as auto equity loans, pink slip loans or car title loans.


Applying for a car title loan online

Most title loan lenders do not perform a credit check. This means that you can still qualify for the loan if you have bad, poor or no credit score. It is possible to have the loan approved on the same business day.

This, however, depends on your lender, the maximum amount that you are applying for and whether you have provided all the required information.  Once you get an approval, you will have to surrender your car title. The loan amount is based on the vehicle equity value.

Some lenders may also need you to show proof of income, usually to confirm whether you can afford to repay the debt.  Ensure that you meet all the minimum requirements before starting the loan application process.

Aside from your income statements, other title loan requirements include:

  •  You should be above the age of 18
  • You should have a state-issued ID card or driving license
  • Show proof of insurance
  • Provide social security card


How soon can I get approved?

You can easily get approved for a title loan as soon as you meet the requirements. The funds are credited to your bank account, or you can get them via check or MoneyGram.  One advantage of title loans is that they can also help rebuild your credit. You only need to repay the loan on time every time you borrow.


Can I still use my car?

Yes, you can continue driving your car even after you receive the funds. Lenders understand that the car is an essential part of your life. They do allow you to continue using the vehicle until the loan matures.  The only item that will be taken from you is the car title.

If you default on the car loan, your credit score will be significantly affected. In worst cases, you may end up losing the vehicle, which will be put on sale to recover the funds. If possible, try to negotiate with the auto lending company on whether they can extend the loan duration. Most title lenders have favorable terms, and they are also willing to listen to you.


Why choose a car title loan?

Even before getting into details, ensure that you go through the loan terms and conditions before signing the contract. Online lenders work differently.  Some claim to provide the lowest rates around, but you may have to pay more on additional fee charges.

If you feel that an online title loan is the best option for you, it is imperative to compare terms from different lenders. Take into consideration their reputation, the rates they offer and whether they have other additional charges. Here are some of the benefits of applying for online title loans;

Affordable repayment plan

Some title loan lenders do not impose prepayment penalties for borrowers who intend to pay off the loan early. This means that you can easily pay for the loan before the due date and avoid paying extra interest rates. Some lenders also agree with applicants on the repayment plan making it easier to repay the loan and avoid getting into a cycle of debt.

Easy to qualify

No credit check is performed when applying for an online title loan. The main requirements are a free and clear vehicle title, a state-issued ID card and regular monthly income.

Online application

It is easier to apply for an auto title loan at the comfort of your home or office. A high percentage of title loan lenders provide the online applications option. Provided you have a phone or computer, you can apply for the loan and get feedback from your lender within minutes.

Same day approval

You don’t have to wait for weeks or even months to get your bank loan approved. The loan can be helpful when you need to take care of an emergency financial situation.

You can borrow as much as you need

The value of your car determines the maximum loan amount.  If for instance, your car value is $10,000, you may qualify for a loan amount up to $10,000.


Are there any drawbacks?

If you default on the loan, a title lender can legally repossess your car. Lenders also place a lien on your car title, which means that you won’t qualify for another loan until the original debt is paid. Lastly, title loans are only legal in 30 states. If the loans are illegal in your state, then you may have to consider an alternative method of financing.


Other important considerations

If you make your monthly payments late, your loan balance increases. As a result, the loan becomes more expensive to pay.  But if you are responsible paying off the debt, you will end up having a positive experience. Even before getting a title loan, ensure that you are well aware of the benefits and drawbacks



Regardless of the circumstance that you are in, auto title loans are an easy way to get fast cash. The main advantage of the loans that the ease of qualifying when your credit score is too weak for you to be eligible for alternative funding.

If you are sure that you can manage to pay the debt on time, do not hesitate to submit your application. But be wary. Accumulating debt is always risky, so don’t gamble your vehicle unless you are comfortable paying back the borrowed funds.