From that metallic black 2023 Ford to that 80’s vintage, rusty Cadillac, there’s so much to enjoy from owning a car. There's convenience and a fun ride, but one often overlooked benefit of car ownership is access to financing by using the car title as collateral.
Title loans are loans secured by a car, boat, or RV title. Car title loans, the most common type, have a medium loan term and are viable funding options for financial emergencies. The car can continue to be used by the borrower throughout the life of the loan and remains theirs if they pay the debt on time.
This article highlights the best car title loan services, what makes them unique, and explains what to look out for when considering a title loan.
- WeLoans - Best for Overall
- LoanMart - Best for Interest Rates
- NetCredit - Best for Building Credit
- US Title Loans - Best for High Approval Rates
- CashUSA - Best for Larger Loans
- TitleMax - Best for Motorcycle Title Loans
- Fast Title Loans - Best for Finding a Nearby Lender
- Check Into Cash - Best for Small Loans
- Ace Cash Express - Best for In-person Service
- Speedy Cash - Best for Overall Customer Service
WeLoans - Best for Overall
WeLoans is a trusted lending service for bad credit customers who can’t access traditional bank financing. Approval ratings for WeLoans' partner lenders are at a market high (97%), and these lenders offer high valuations for your car, truck, or boat. Loan offers are between 25 and 50% of the asset's value.
WeLoans charges zero loan origination or processing fees for applying for a title loan; however, individual lenders may charge administration, roll-over, or late payment fees.
The WeLoans brokerage has over 150+ direct lenders in its network, and a cash advance is possible with your car as collateral regardless of your credit rating. Borrowers can appeal to their lenders for an extension before the payment deadline if they are likely to default. They should also check whether late fees or a higher interest rate will be applicable in return for an extension.
Pros
- Funding decisions are quick
- A wide range of financing options such as online no credit check loans
- No credit checks
- Credit scores not part of loan approval
Cons
- Late payment fees may apply
LoanMart - Best for Interest Rates
LoanMart’s high customer approval ratings on Google (4.5) and Trustpilot (4.7) are two reasons it’s top of our list for car title loan services. For two decades, LoanMart has kept their customer base (over 250k+) happy with a simple application process and same-day or next business day funding policy.
A few customers on Trustpilot testified to the low-interest rates. One customer in particular, described these rates as ridiculously low. This platform's partner lenders offer car title loans between $1,000 and $25,000, depending on your vehicle’s condition.
Many customers opt to receive the loan through payment options such as MoneyGram, direct deposit, or mail. Customers can also pick up cash in-person locally once they have been approved online.
Pros
- No prepayment penalties
- Available in 29 states
- Customer reps are well-known for being courteous
- Provides good title loan deals to borrowers other creditors won’t consider
- Has a mobile app
- High approval ratings
Cons
- Offers only for payment options - direct deposit, mail, MoneyGram, or in-person
NetCredit - Best for Building Credit
NetCredit has partnered with Republic Bank & Trust Company Transportation Alliance Bank to offer unsecured loans that do not require collateral or titles. This platform also uses two options for checking your eligibility for a loan, My ScoreSaver™ and My CreditBuilder.
With My ScoreSaver™, checking your eligibility won't affect your credit score. With My CreditBuilder, payment towards your personal loan will be reported to TransUnion and Experian, so on-time payments can help you build your credit history.
Pros
- Fast funding
- Up to $10,000 in loans
- Opportunity to build credit with on-time payments
Cons
- Payments are reported to credit bureaus, which might not be ideal for some borrowers.
US Title Loans - Best for High Approval Rates
US Title Loans offers some of the best auto title loan deals you can find. Borrowers complete an online loan request to be matched with a lender with high approval rates.
The platform's interface is user-friendly, responsive, and easy to navigate even for loan newbies. US Title Loans guarantees you bank-level confidentiality. Your personal and financial information is safe and secure within the platform. Unlike unscrupulous services that sell customers’ data to survey sites, data entered on the application form is collected strictly to connect you with the best fit for an auto title loan.
Pros
- Lenders are open to renegotiating deadlines
- Users have access to car title loan alternatives like instant payday loans
- Bad credit is considered
- A loan will not affect your credit score
Cons
- Some of its features are only available to existing customers
CashUSA - Best for Larger Loans
If car title loans do not get you as much cash as you need, try an alternative like a secured or unsecured personal loan for up to $10,000 on CashUSA. Since personal loans are long term (up to 72 months depending on the agreement with the lender), interest rates are relatively lower than those for car title loans withAPRs ranging between 5.99% and 35.99%.
CashUSA values security and keeps your data secure with its 256-bit SSL encryption protocol. It has a wide network of both state and tribal lenders. Also, the platform has a rich educational database with articles on how to improve your credit score and manage your finances.
Pros
- An extensive network including state and tribal lenders
- Partner lenders use fair debt collection practices recommended by federal laws
- An online Educational center with helpful articles on financial management
Cons
- No mobile app
- Loans only up tp $10,000
TitleMax - Best for Motorcycle Title Loans
TitleMax is arguably one of the biggest car title lending companies in the United States and one of the few offering motorcycle title loans. TitleMax also offers car title loans, title pawns, personal loans, and motorcycle title pawns.
The lending service, founded in 1998, provides loans between $2,600 and $10,000 to borrowers in 17 states. Customers can also refinance existing title loans once they have paid at least 20% of the principal. Repayment options include cash, money order, or certified check. Residents of Mississippi, South Carolina, Arizona, Tennessee and a few other states can pay by Western Union Quick Collect.
Pros
- Over 1,000 physical stores
- Offers motorcycle title loans
- Same-day funding available
- Customer-centric policies
Cons
- Minimum loan amount ($2,600) is a little high
Fast Title Loans - Best for Finding a Nearby Lender
Fast Title Loans is the best place to find a car title loan near you. The platform now has an extensive network of industry-leading title loan lenders committed to getting customers quick cash. Funds are deposited the same day for applications submitted before noon. Otherwise, you can get funded as soon as the following business day.
Customer support is available 24/7, and many answers are found on the extensive FAQ. Thousands of borrowers highly rate this provider because of its quick application process, competitive rates, transparent service, and their willingness to accept most car makes and models.
Pros
- Near-instant funding
- Approval decisions are made in under five minutes
- Accepts most car makes and models
- 24/7 customer support
Cons
- No joint loans
Check Into Cash - Best for Small Loans
Check Into Cash is a great option for loan applicants who value responsiveness and quick funding. This loan-connection service has a network of hundreds of lenders with easy-to-satisfy eligibility requirements. Also, lenders do not consider the borrower’s credit scores in their approval decisions.
Loans are available from $50 (which is the smallest amount in the online lending world), and up to $5,000.
Check Into Cash loans are currently available in as many as 22 states, and the platform's services include money transfers, money orders, and check-cashing services.
Pros
- Provides other credit-related services
- Relatively low interest rates
- Has a virtual chat assistant that can help with locating nearby locations, questions about products, and loan status information
- Strong social media presence
Cons
- The minimum age requirement is 21 years and 19 years in Alabama. Other lenders use 18 years as the benchmark.
Ace Cash Express - Best for In-person Service
Ace Cash Express is one of the oldest lenders in the online lending community. It is a household name and was founded in 1968. This platform is accredited by the Better Business Bureau (BBB), proving its legitimacy.
The lending service has physical stores, making it a good option for those who prefer to talk to a lending agent in person. Agents walk borrowers through the entire process of obtaining a secured or unsecured loan.
Pros
- Funds are typically processed within the same day
- No credit score requirement
- No prepayment penalties
Cons
- Interest rates may be a little high
Speedy Cash- Best for Overall Customer Service
Speedy Cash is one of the most reputable lending and connecting services. It has a rating of 4.5 out of 5 on TrustPilot. The service was founded in 1997 and has been providing car title loan applicants with some of the best deals for over two decades.
Speedy Cash, also known as Rapid Cash in Washington, Nevada, and Oregon, strives for a personal connection with its customers. Hence, it offers in-store, on-line, and over-the-phone services.
Pros
- Automatic payments
- Many funding options
- Flexible repayment options
- Easy and convenient to use
- Great customer service
Cons
- May charge an origination fee
What Are the Benefits of Getting Car Title Loans?
Bank loans are becoming increasingly difficult to qualify for, especially for bad credit customers. That means that people are seeking alternatives, such as car title loans. However, for some, secured loans are scary because defaulting means losing their collateral. Is a secured loan a good idea? Is it the best option for you, and if so, what are their benefits?
Here are some of the known benefits of car title loans and some of the biggest reasons why they appeal to many borrowers:
- The borrower can use the car or asset throughout the life of the loan as long as they pay their debt by the original deadline or extension. In other secured loan agreements, the lender holds on to the collateral until the borrower pays their debt.
- There are often no credit score or guarantor requirements because the car acts as collateral.
- Funds are deposited quickly for auto title loans and payback is easy. Typically, payments are made in monthly installments by direct debit or other convenient method.
How to Get a Title Loan?
There are a few steps to getting a title loan.
- Choose which lender or lending platform you want to go with based on your research.
- Gather the documents that you will need to fill out the online application. For example, your vehicle title and a government-issued ID. You may also have to show proof of income, proof of residency, or a valid vehicle registration.
- Fill out the online forms and provide the documentation.
- Visit the lender at a physical location so that they can assess the vehicle.
- Get approved and receive funding in one business day in many cases.
Cheaper Alternatives to Title Loans
Payday loans
Payday loans are great alternatives to title loans because they are mostly unsecured and can be used to secure higher loan amounts, up to $5,000 and more depending on the lender. As with title loans, credit scores are not considered when assessing an applicant's eligibility for a payday loan.
Credit union loans
Interest rates charged on credit union loans are generally lower than payday and title loans. However, you may need to be a member of the credit union to qualify. A credit union is a cooperative-type financial institution established by people who choose to pool some savings to help each other when they need bulk cash.
Side gigs and hustles
Title loan funds are paid quickly and are thus useful in times of emergencies. However, if your money worries are less urgent, you can try a side gig or hustle as a longer term option. Examples are freelancing on Fiverr and Upwork, registering as a driver on a ride-hailing service like Uber, selling unused old items, or taking part in online surveys.
Conclusions
Car title loans are a solid alternative to payday loans and bad credit loans. If you have bad credit, securing your loan with a car title reduces your risk to a lender. The interest rate charged on the loan will be less than the rate charged on a bad credit loan. You will have the best experience when you shop for loans on any of the above-listed services. You can also consider other alternatives and decide which is the cheapest option for you.
FAQs
1. What is a title loan?
A title loan is a short-term loan requiring an asset as collateral, the most common of which is a car title. The loan service provides the applicant with cash and uses the car's title as collateral to be auctioned for cash should the borrower fail to pay back the loan. Titles of electric cars, golf carts, buses, dump trucks, and four-wheeler ATVs are generally not accepted.
2. What are some common types of title loans?
The common types of title loans include car title loans, boat title loans, motorcycle title loans, SUV title loans, truck title loans, and recreational vehicle title loans.
3. How much can I borrow with an auto title loan?
How much you can borrow with an auto title loan depends on the car’s equity or value and the state you reside in. Lenders usually lend around 25% to 50% of the car’s market value at the time of application.
4. What documents are needed for car title loans?
The following documents will increase your chances of getting approved for a car title loan: driver’s license, proof of income, utility bills as proof of residence, a clear title on the vehicle in your name alone, vehicle insurance documentation, government-issued ID card, and three references.