man thinking about vehicle title loans

Discover How Title Loans Work

Title loans can be very intimidating if you’ve never applied for one before. After all, you’re signing a financial contract, and hearing all sorts of unfamiliar terminology. It’s only natural to have a lot of questions and be concerned about how do title loans work. Carolina Title Loans, Inc. values transparency and customer satisfaction. We want you to feel comfortable about the loan, and confident about your decision. We’ve put together this simple guide to help you know more about how do title loans work.

What Are Title Loans?

When you take out loans for car titles, you use your title as collateral or security for the loan. Think of it as a pledge that you make to pay off the loan, which is backed up by using the title as a guarantee. There’s a common misconception about how do title loans work: “I have to give up my car when I sign the loan.”

person meeting with Title loan representative and explain how title loans work

The truth is that the lender doesn’t take your car. Instead, we place a lien or a legal claim on the title and then lift it after you pay off the loan. It’s the same thing that happens when you take out a car loan or mortgage. When you borrow money from the bank to buy property, the bank places a lien until you’re done with all your payments. So, a “lien” isn’t as unfamiliar or as intimidating as it may sound—you’ve done this before!

Who Can Get Loans For Car Titles?

The next important question about how do title loans work is eligibility, or whether or not you qualify for the title loan. Here’s the good news: the only requirement for this loan is to be the registered owner of a vehicle with a lien-free title. That means:

  • The car title is registered under your name. If it is under someone else’s name, just go to your local Department of Motor Vehicles (DMV) license plate agency to have it transferred to you. Note that documents have to be signed by both you and the owner, and notarized. You can find all the steps on the DMV website.
  • The title is lien-free. You are not currently using the property as collateral for another loan.
  • The car is fully owned. You can’t use a title if you’re still paying off your car loan because the bank has a lien on the title. The vehicle must be paid in full to own it outright.

Can I Get A Title Loan Even If I Have Bad Credit?

Yes! You can be approved even if you have a low credit score, or have not yet been able to establish enough credit history. You will not have to show any other financial documents or employment records—the only paper you have to present is your vehicle title.

How Much Can I Borrow With A Title Loan?

The third factor in how do title loans work is the loan limit, or how much you can borrow. This can range from $601 to $15,000, based on your vehicle model and condition.

During the vehicle inspection, a loan representative will check the car’s age, mileage, working parts, and the appearance of its interiors and exteriors. This will allow a fair and objective evaluation of its market value, based on industry standards. In general, the title loan limit is 25% to 50% of the market value. You’ll find out your loan limit after the vehicle inspection.

How Do I Get A Title Loan Now?

Now that you know how do title loans work, here’s the easiest way to apply for one. You don’t have to wait in line or make several visits to the store—with just one phone call, and one thirty-minute appointment with our loan representative, you can raise the emergency cash you need.

Here’s all you need to do. Fill out the short inquiry form, and then wait for one of our loan representatives to call. We respond really quickly, so keep your phone ready!

During the call, the loan representative will walk you through how do title loans work, from the initial requirements to what to expect during the rest of the loan process. You can ask any questions, and clarify any points.

car title loan money

After getting the answers you need, the loan representative will set an appointment to inspect your vehicle and verify your documents. You can either select the branch location that is most convenient for you or arrange to meet the representative at your preferred place, date, and time.

When you go to the meeting, bring the following items: your vehicle title, state-issued ID, and your vehicle for inspection. The loan representative will verify the title and ownership, and then check the vehicle to determine the loan amount you qualify for.

The appointment takes a minimum of 30 minutes to fully complete and have us come to our decision. If we do decide you qualify for approval, you get the money the same day or the next bank business day.

Find Out More About Loans For Car Titles 

Do you have any questions about title loans, and whether they’re right for you? If the answer is yes, fill out the form to speak with one of our Carolina Title Loans, Inc. loan representatives. They will be happy to personally explain all of it and assist with your request. If approved, you are not required to accept our title loan offer. You can simply submit a loan request to speak with a loan representative for more information.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.