Title Loan Requirements: What You Need to Qualify

What You Need to Get a Title Loan

Title loans are designed to be accessible, but you still need to meet certain requirements to qualify. Understanding these requirements before you apply saves time and helps you prepare the necessary documentation.

This guide covers everything you need to know about title loan qualifications, from vehicle requirements to documentation.

Basic Eligibility Requirements

Age Requirement

You must be at least 18 years old (19 in some states like Alabama and Nebraska) to enter into a loan contract.

Vehicle Ownership

You must own a qualifying vehicle with a clear title. This means:

• The title is in YOUR name
• No existing liens from other lenders
• No unpaid financing on the vehicle
• Title is not branded as salvage (in most cases)

Note: Some lenders work with co-owned vehicles if both owners sign the loan documents.

Ability to Repay

Lenders want assurance you can repay the loan. This typically means demonstrating:

• Regular income (employment, self-employment, benefits)
• Sufficient income to cover loan payments
• No active bankruptcy proceedings

State Residency

You generally must be a resident of the state where you're applying, and title loans must be legal in that state.

Vehicle Requirements

Not all vehicles qualify for title loans. Here's what lenders typically look for:

Vehicle Types Accepted

Commonly accepted:

• Cars (sedans, coupes, hatchbacks)
• SUVs
• Trucks (pickup trucks)
• Vans and minivans
• Motorcycles
• RVs and motorhomes (some lenders)
• Boats (specialized lenders)

Usually not accepted:

• Commercial vehicles (semi-trucks, buses)
• Vehicles without titles
• Leased vehicles
• Vehicles with salvage titles

Age and Mileage

Most lenders have limits on vehicle age and mileage:

Newer vehicles with lower mileage typically qualify for higher loan amounts.

Condition Requirements

Your vehicle should be:

• Running and drivable — Most lenders require an operable vehicle
• Properly insured — Current auto insurance required
• Registered — Valid registration in your name
• In reasonable condition — Major mechanical issues may reduce value or disqualify

Vehicle Inspection

Lenders evaluate your vehicle to determine loan amount. They consider:

• Make and model — Some brands hold value better
• Year — Newer vehicles = higher value
• Mileage — Lower mileage = higher value
• Condition — Interior, exterior, mechanical condition
• Market value — Based on Kelly Blue Book or similar guides
• Local market — What similar vehicles sell for in your area

How inspections are conducted:

• In-person inspection at lender location
• Mobile inspection (lender comes to you)
• Photo-based inspection (you submit photos)
• Video call inspection

Required Documents

Prepare these documents before applying:

Essential Documents

1. Vehicle Title

• Original title (not a copy)
• Must be in your name
• No liens listed
• No alterations or corrections that aren't notarized

2. Government-Issued ID

• Driver's license
• State ID card
• Passport

Must be current (not expired) and match the name on your title.

3. Proof of Residence

• Utility bill (recent, within 30-60 days)
• Bank statement
• Lease agreement
• Government mail

Must show your current address.

4. Proof of Income

Documentation varies by employment type:

Employed:

• Recent pay stubs (2-4 weeks)
• Employment verification letter
• Bank statements showing deposits

Self-employed:

• Bank statements (2-3 months)
• Tax returns
• Profit and loss statements
• Invoices or contracts

Benefits/Other income:

• Award letters (Social Security, disability)
• Retirement statements
• Alimony/child support orders
• Investment income statements

Additional Documents (May Be Required)

• Vehicle registration — Proof of current registration
• Proof of insurance — Current auto insurance card
• References — Personal or professional contacts
• Bank account information — For direct deposit of funds
• Spare key — Some lenders require a spare key

The Application Process

Here's what to expect when applying:

Step 1: Initial Application

Provide basic information:

• Personal details (name, address, phone, email)
• Vehicle information (year, make, model, mileage)
• Loan amount desired
• Income information

This can usually be done:

• Online (5-10 minutes)
• By phone
• In person

Step 2: Document Submission

Submit required documents via:

• Online upload
• Email
• In-person delivery
• Fax (less common)

Step 3: Vehicle Evaluation

The lender assesses your vehicle's value through:

• In-person inspection
• Photo review
• VIN lookup and market analysis

Step 4: Loan Offer

You receive a loan offer including:

• Approved loan amount
• Interest rate and APR
• Monthly payment
• Loan term
• All fees

Step 5: Approval and Funding

If you accept the terms:

• Sign loan documents
• Hand over vehicle title
• Receive funds (same day or next business day)

Factors That Affect Your Loan Amount

Several factors determine how much you can borrow:

Vehicle Value (Most Important)

Your loan amount is typically 25-50% of your vehicle's wholesale value.

Example:

• Vehicle wholesale value: $8,000
• Loan range: $2,000-$4,000

State Regulations

Some states cap maximum loan amounts:

Lender Policies

Each lender has different:

• Maximum and minimum loan amounts
• Percentage of value they'll lend
• Risk assessment criteria

Your Ability to Repay

Demonstrating higher income may qualify you for:

• Higher loan amounts
• Better interest rates
• More favorable terms

Common Reasons for Denial

Applications are sometimes denied. Common reasons include:

Vehicle Issues

• Existing lien on the title
• Title not in applicant's name
• Vehicle doesn't meet age/mileage requirements
• Salvage or branded title
• Vehicle value too low

Documentation Issues

• Missing required documents
• Documents don't match (different names/addresses)
• Unable to verify income
• Expired identification

Eligibility Issues

• Applicant under minimum age
• Active bankruptcy
• Previous default with same lender
• Living in state where title loans are prohibited

Tips for a Smooth Application

• Gather documents first — Have everything ready before applying
• Verify your title — Make sure it's clear and in your name
• Get your vehicle clean — First impressions matter for inspection
• Know your vehicle's value — Research on Kelly Blue Book or similar
• Compare multiple lenders — Get quotes from at least 3 lenders
• Read all terms carefully — Understand APR, fees, and total cost
• Ask questions — Clarify anything you don't understand

State-Specific Requirements

Requirements vary by state. Some considerations:

Regulated States

States with title loan regulations may require:

• Specific disclosures
• Cooling-off periods
• Limits on rollovers
• Maximum interest rates

States Where Title Loans Are Prohibited

Title loans are illegal or heavily restricted in some states:

• New York
• New Jersey
• Pennsylvania
• Maryland
• Connecticut
• And others

Check your state's regulations before applying.

Conclusion

Getting a title loan requires meeting basic eligibility criteria, having a qualifying vehicle, and providing proper documentation. To prepare for your application:

• Verify eligibility — Age, vehicle ownership, income
• Check your vehicle — Clear title, meets requirements
• Gather documents — ID, proof of income, proof of residence
• Research lenders — Compare rates and requirements
• Understand costs — Know the APR and total repayment amount

Being prepared speeds up the process and helps ensure approval. Use our matching service to connect with reputable lenders who can evaluate your situation and provide competitive offers.