Title Loan Requirements 

A title loan is a short-term loan where the borrower uses their car as collateral for cash. Although most lenders make the process of taking out a loan fairly straightforward, it never hurts to know what requirements are necessary to successfully take out a title loan! Let’s dive into some of the basics. 

Who Can Qualify For A Title Loan?

One of the pros of taking out a title loan compared to other loans is the fact that the lending requirements are pretty straightforward. You don’t necessarily need to be employed nor do you need to have any credit. What matters at the end of the day is that you own the title to your car.

A title is a piece of paper, often referred to as a pink slip, which proves that you are the owner of the vehicle. As long as you own the title to the car and there are no liens against the vehicle, you can qualify for a title loan.

Do I Have to be Employed?

You do not need to have a job in order to get a title loan. What matters is that you own the title to your vehicle.

What if the Car is Financed?

You can still get a title loan on a car that is financed. What matters is how much equity you have in the car. To put it simply, equity is how much of the car you own. Typically, the longer you’ve been making payments, the more equity you have in your car.

The amount you can borrow with a title loan is usually 25-50% of the value of your car if you own your car outright. If your car is financed however, the amount you would be eligible to borrow is usually much less. Many lenders don’t offer title loans for financed cars unless you are a few payments away from owning the car in full or have consistent proof of income.

Example 1 (Positive Equity):

• Your car’s value is $45,000
• You only owe $5,000 to the dealership
• Your equity in the car is $45,000 – $5,000 = $40,000
• You can typically get a loan of 25-50% of the equity in your car which is $10,000 – $20,000

Example 2 (Negative Equity):

• Your car’s value is $20,000
• You owe $30,000 to the dealership
• Your equity in the car is $20,000 – $30,000 = – $10,000
• You have negative equity in your vehicle meaning you owe more than the car is worth and you would not be eligible for a title loan

To find out what your car is worth you can use the free Kelley Blue Book calculator. 

What Documents Are Required For A Title Loan?

Here are a list of documents you need to secure a title loan:

• Clean car title in your name
• Driver’s license or government ID
• Car registration
• Proof of insurance
• Proof of income (e.g. last two pay stubs or tax records if self-employed; note that many lenders do not require this)
• Proof of residency (e.g. utility bill)

Some lenders may even require an extra copy of your car key and reference checks, but these are the basic requirements to get a title loan. With Title Bird, you can sit back and relax and apply from the comfort of your home and a representative will reach out to you to inform you of all the necessary documents. 

What If I Lost the Title to my Car?

Don’t worry, you can always get another title. Here are two scenarios to consider.

The title is in my name

As long as the title is in your name, you can easily get a replacement title from your local DMV. Be sure to consult your local state’s requirements on how to get a replacement title. Some documents you’ll need to bring include your VIN, certificate of title number, and driver’s license. You can find your VIN and certificate of title number on your registration.

The title is in someone else’s name

Whether the title is in someone else’s name because you either inherited the vehicle or lost the transferred title from the previous owner, here are the steps you need to take.

Possible reasons for title not in your name	Steps you need to take
Inherited the car	If there is a will, a probate court will determine who the beneficiary is of the car.If you are the beneficiary, you just need the old title, death certificate of the previous owner, and proof that you are the beneficiary from probate court.If you are missing the old title, you can still obtain a new title with just the death certificate and proof that you are the beneficiary. Consult your state’s secretary of state or DMV for more details.
Lost the transfer title	Contact the previous owner.Ask them to apply for a replacement title and offer to pay for all the fees and their time.If they don’t answer or can’t be found apply, for a bonded title. It’s like insurance: if the car isn’t really yours, the actual owner gets paid. This is a valid form of title for most title loan lenders.

Find Out All the Title Loan Requirements You Need with Title Bird 

Getting a car title loan might seem confusing, but that’s what we’re here for. Title Bird partners with leading title lenders across the nation and simplifies that process for you, so you won’t be left in the dust. Apply now to see how much you can get for your car, and we’ll be more than happy to explain everything you need to secure a title loan!