Helpful Tips for Getting a Car Title Loan

Helpful Tips for Getting a Car Title Loan


A car title loan is a short-term loan that you get by using your car title as collateral. This can be an easy way to get the funds that you need. However, there are several things that you will need to do before you get a title loan.

Make Sure That the Lender is Licensed

All states require that lenders be licensed. The regulations can vary from state to state. It is illegal for a lender to operate without being licensed.

Find out About the Lender’s Requirements

All lenders have the same basic requirements for getting San Antonio title loans. However, some lenders have their own unique requirements. You will need to own your car title. You will also need to have a source of income. In the state of Texas, income is easy to prove. Additionally, your title should be lien-free.

It is important to note that most lenders require that your car be manufactured after 2000. Other lenders will accept cars that date back to 1995. Lenders may also require that your car’s mileage be less than 100,000 miles.

Have all of the Documents That You Need

You should contact the lender to find out what you need to get a car title loan. You may be asked to provide the following.

Proof of title ownership

Vehicle registration

Proof of insurance

Recent paystubs or proof of income

Contact information of the references

Utility bill or proof of registration


Understand the Application and Approval Process

Most lenders will allow you to fill out the entire application online. In many cases, people are able to get approved in 20 minutes or less. The purpose of the online application process is to help people get approved more quickly.

A representative will likely contact you after you have filled out your application. The lender may also require that you have your vehicle inspected.

Find out how Much Money You can Borrow

Every lender sets a limit on the amount that you can borrow. Some states also put a cap on the amount that you can borrow. Your loan amount will typically be equivalent to 25 to 50 percent of your car’s value. Your income will also determine how much you can borrow.

Find out About the Fees and Rates

The interest rates on car title loans can vary greatly. However, they have higher interest rates than standard loans. Lenders may also charge a fee for the lien. You should find out about the fees and rates before you apply for a loan.

Find out if There is an Early Repayment Penalty

It may be a bad idea to pay your loan off early. Some lenders will charge you a fee for paying off the loan early. If the term of the loan is 30 days or longer, then you will likely have to pay a prepayment penalty. You save a lot of interest by paying the loan off early. That is why lenders may charge you extra to recoup the money that they lost.