FAQ

The amount you can get for a title loan on your car depends on several factors, including:

1. Vehicle’s value: Lenders typically offer loans based on a percentage of your car’s current market value, often ranging from 25% to 50% of the vehicle’s worth.
2. Condition of the vehicle: The make, model, year, mileage, and overall condition play a significant role in determining its value.
3. State regulations: Some states have limits on the maximum loan amount for title loans.
4. Lender policies: Different lenders have different caps, which may affect how much you can borrow.

In general, loan amounts can range from a few hundred dollars to several thousand dollars, depending on your car’s value and the lender’s policies.

Typical repayment terms for a title loan vary depending on the lender and the borrower’s agreement, but they are generally short-term, often ranging from 15 to 30 days. In some cases, lenders may offer extended repayment periods up to a few months or more. However, these loans usually come with high interest rates, and failing to repay the loan on time can result in additional fees, higher interest, or the repossession of the borrower’s vehicle used as collateral. Some lenders may offer installment plans with longer repayment periods, but the costs tend to remain high.

Yes, title loan interest rates are typically considered high. These loans are often short-term and can carry annual percentage rates (APRs) that reach 300% or more. The high interest rates reflect the risk to lenders, as title loans are secured by your vehicle, and borrowers with less-than-perfect credit often rely on them for quick cash. This makes them an expensive borrowing option compared to traditional loans.

Yes, title loans can affect your credit. While many title loan lenders don’t report to major credit bureaus, if you default on the loan, the lender may repossess your vehicle or send your account to collections, which could negatively impact your credit score. However, timely payments might not help improve your credit since most lenders don’t report positive activity.

Yes, you can often get approval for a title loan even with a bad credit rating. Title loans are secured by the value of your vehicle rather than your credit score, so lenders typically focus more on the vehicle’s value and your ability to repay the loan. As long as you own the vehicle outright (with a lien-free title) and meet other basic requirements, such as proof of income and residency, you can still qualify for a title loan despite poor credit. However, be aware that these loans come with high interest rates, making them an expensive option for borrowing.

A lien-free bad credit loan is a type of loan offered to individuals with poor credit without requiring the borrower to use any property, like a vehicle, as collateral. “Lien-free” means there are no claims or legal rights against any of the borrower’s assets. These loans tend to have higher interest rates because they are unsecured, making them riskier for lenders. They can be a viable option for people who need funds but don’t want to risk losing personal property if they fail to repay the loan.

Lien-free means you owe your vehicle outright, which means you can get a car title loan against it. If a lien holder registered on your vehicle, such as a finance company you used to purchase it, you will not be able to obtain a car title loan.

Yes, with car title loans, you can pay off your loan whenever you want without paying any penalty!