What do you need to get a title loan?

If you are considering taking a collateral loan on your car title, you must be wondering about car title loan requirements. Let’s take a look at what a title loan is and what you need to get one. 

What Is a Title Loan? 

Title loans, also known as car title loans, are a kind of auto loan for which the borrower puts up their vehicle as collateral. In case they fail to repay the loan, the lender can claim the car and sell it to balance the debt. These loans are generally short-term and offer a viable solution to deal with unexpected financial emergencies. The amount of the loan is determined by the value and condition of the car that the borrower put up as collateral. 

Title loans have a high approval rate. Plus, it is easy to acquire them since requirements for title loans are generally less stringent than most other types of loans. The best part is that, since you secure the loan through collateral, the lenders are usually not as concerned about your credit score. This means that you can potentially secure a title loan even if your credit score is less than perfect. 

The only downfall to getting a car title loan is that the interest rates are high. On top of that, the time period to return the loan is generally set between 15 to 30 days, which makes it hard for some people to repay the loan with high interest. 

However, some lenders may allow up to two years or more to return the loan. So, it is always a good idea to talk to your lender about these details before you sign the deal. Another thing to keep in mind is that car title loans are not legal in all states, so it is advisable to check whether or not title loans are legal in your state before you get your hopes too high.   

What Do You Need for a Title Loan?

Now that you know what this kind of loan entails, let’s take a look at car title loan requirements


Government-issued identification is necessary to get a title loan. The borrower must be at least 18-years old. Furthermore, the name on the identification must match the name on the title of the car. This shows the lender that you own the car and are eligible to use it as collateral.  

Vehicle Title Showing Ownership 

A vehicle title is a certificate that establishes an individual as the legal owner of the car. It generally contains information like the vehicle identification number, the year in which the vehicle was manufactured, the license plate number, technical information that defines the taxation regime, the name of the legal owner of the car, and the lien status of the car. You will be required to show the original vehicle title of the car you are using as collateral as the lender needs this information in order to approve the loan. 

Lien-Free Car 

The vehicle you use as collateral must be lien-free. This is important because if the loan is approved, the lender will place a lien on the car, which will enable them to take possession of the vehicle and sell it to settle the debt if you fail to repay the loan. The lien will then be released and the vehicle title will be returned to the original owner after complete payment of the loan.  

Car Insurance 

Auto insurance plays an important role when it comes to getting title loans. Most lenders approve loans only for insured vehicles. So, if your car is not insured, make sure you discuss this with your lender beforehand.

Proof of Residency 

Some lenders may require proof of residency apart from your ID to confirm your address. A number of documents may be accepted as proof of residency including your recent utility bills, recent bank statement, driver’s license, etc. If the lender requires proof of residency, it is a good idea to check in with them to see the documents they accept as proof of residency. 

Proof of Income 

The lender may also ask for proof of income as a car title loan requirement. Keep in mind that proof of income is not the same as having a regular job. This means that you can request a car title loan even if you are unemployed or between jobs. However, you will be required to show that you have a source of steady income. Apart from a steady job, you can show proof of annuity, worker’s compensation, social security benefits, etc. as proof of income. 

Personal References 

Requirements for a title loan may also include personal references. Most—but not all—lenders will require you to provide 2-5 personal references. Generally, borrowers have to share names, phone numbers, and addresses of the references. Keep in mind that your references will act as your guarantors. Furthermore, the lenders may call the numbers you provide to confirm your references. 

Keep in mind that the requirements for a title loan may vary from lender to lender. Your state of residence may also affect the requirements to get a title loan. Therefore, it is essential to take your time to explore your options and connect with a lender whose car title loan requirements you can easily fulfill.