Are you in need of a title loan?
Truth is, getting approved for title loans is way easier than most people think. There are no tiresome background checks and endless paperwork, just like at your local bank.
Instead, title loan requirements are refreshingly simple.
The catch is…
More than 5.2% of consumers financed with auto title loans in 2024. Compare that to just 3.7% in 2023 and you know one thing’s for sure:
Title loans are getting more accessible than ever.
But before you head down to your local lender, it’s a good idea to know exactly what you need for approval and how to get the very best offer.
Table of Contents
In this post you’ll learn:
- The core title loan requirements every lender will ask for
- Vehicle value requirements that actually matter
- Documentation to have on hand
- Income and credit requirements (or rather, lack thereof)
- State-specific requirements that can trip you up
The First Thing Lenders Care About: Your Vehicle
So what’s the one thing lenders care about the most?
Your car, obviously.
Title loans are secured loans where your vehicle acts as collateral. Lenders will typically offer anywhere from 25% to 50% of your vehicle’s value.
Meaning if your car is worth $10,000, your loan amount can range from $2,500 to $5,000.
But here’s the part most people don’t know…
When lenders say they’re interested in your vehicle value, they have specific resources like Kelley Blue Book or auction values to determine how much it’s really worth.
It’s not the retail price sticker you’d pay at a dealership — but rather the wholesale price they’d make if they had to quickly unload it.
Clear Title Requirements
The biggest requirement of all? A clean title to the vehicle in question.
That means:
- No outstanding liens from any other lender
- The title is in your name (not someone else’s)
- You own the vehicle outright or have enough equity
A few lenders may work with you if you still have money left on a car loan, but you must have significant equity built up. In most cases, that means owing less than 70% of the vehicle’s current value.
Vehicle Condition Is Relevant
Lenders will also inspect your vehicle before they approve your loan.
Inspectors look for:
- General condition and maintenance
- Mileage (the lower the better)
- Age (newer models = better interest rates)
- Damage and mechanical issues
Don’t sweat it though, lenders aren’t looking for a showroom quality vehicle. They just want to ensure the vehicle is worth what they’re lending against it.
Documentation Requirements: So Simple
Gathering your documents is easier than it sounds.
In fact, the only documents you will be required to provide to title loan lenders will be:
- Vehicle title with your name on it
- Photo ID (government issued driver’s license or state ID)
- Proof of income (pay stubs, bank statement or proof of benefits)
- Proof of residence (utility bill or bank statement with your address)
- Vehicle registration (current and valid)
- Proof of insurance (usually required by state laws)
It will take less than an hour from start to finish if you have all the right documents together. Some lenders even let you start the process online and just visit the store to finish it off.
Income Requirements: Not As Intuitive
Hold on there, we have a surprise for you…
Title loan lenders have some of the most flexible income requirements. Instead of the high income and stable employment typical of traditional loans, title loans only require you to show some ability to make monthly payments.
Acceptable income sources include:
- Employment wages (all types)
- Self-employment income
- Social Security or disability benefits
- Retirement, unemployment income
Most lenders will want to see at least $1,000 per month of consistent income, regardless of how you earn it.
Credit Requirements: The Good News
The good news about title loan requirements?
Your credit score doesn’t matter much.
If your vehicle is valuable enough, lenders don’t care about your credit history. This makes title loans accessible to people who normally wouldn’t qualify for other types of loans.
Title loans work for people with:
- Bad credit scores
- Recent bankruptcy
- No credit history
- Previous loan defaults
Some lenders don’t even run credit checks on their applicants. And the ones that do only use it for informational purposes rather than as an approval requirement.
State-Specific Requirements to Consider
Things start to get complicated here…
Title loan requirements can vary considerably by state. More than 2 million people use title loans every year but they are not available in all 50 states.
Legal vs Restricted States
Twenty-nine states ban title loans outright, or have capped interest rates so low that no lenders exist.
For example, New York capped title loan interest rates at just 16%, and there are no lenders there as a result.
Title loans are also unavailable in the following states due to existing regulations and restrictions.
- California – Loans under $2,500 are capped at 30% APR
- Illinois – Subject to state consumer protection requirements
- Massachusetts – Requires lenders to be non-profit
- New Jersey – Strict state-level licensing requirements
- New York – Interest rate cap at 16%
- North Carolina – Requires lenders to be non-profit
- Pennsylvania – Requires lenders to be non-profit
- Texas – Strict state-level disclosure requirements
Loophole States
Some states including Louisiana, South Carolina, Kansas, and others, have creative workarounds to still offer title loan services. Lenders structure their loans in a way to work within the letter of the state law while still providing title loan services.
Other Requirements Some Lenders Throw In
Beyond these basic requirements, some lenders add their own extras:
- Vehicle inspection and GPS tracking requirements
- Roadside assistance plan requirements
- Spare key surrenders
Expect these to all add to the cost of your loan. Ask lenders about all fees up front before signing anything.
Age and Residency Requirements
You’ll also need to meet these basic criteria:
- At least 18 years old (some states say 21)
- Legal resident of the state you’re applying in
- Valid driver’s license or state ID
Residency requirements are also sometimes thrown in, like you must be a resident for at least 30 to 90 days.
The Next Step: Pre-Approval
The vast majority of lenders will give you access to a pre-approval application that provides you with an estimate in minutes. This way you know how much you can borrow before ever setting foot in a location.
To get this estimate, you simply enter basic vehicle information, your contact details, and employment information. Pre-approval saves time and allows for easy comparison of offers.
Application Process Explained
Once you meet the bare minimum requirements, the application process is simple:
- Online pre-qualification (optional but recommended)
- Visit the lender with your vehicle and documentation
- Vehicle inspection and title verification
- Final approval and loan agreement
- Receive funds (same day in most cases)
Completion time is under an hour with proper documentation.
Title Loan Requirements: The Bottom Line
Title loan requirements are intentionally easy. The most important requirements include having a clean title to a valuable vehicle, proof of regular income and minimum age.
Unlike traditional loans that take weeks to approve and require excellent credit, title loans are far more accessible. Focus on vehicle value and basic repayment ability instead of background checks.
However, just because title loans are easy to qualify for doesn’t mean they are risk-free. Interest rates are high and you could lose your vehicle if you don’t repay on time. Understand all the terms before committing.
