Can you get a loan with a car title?
I know sometimes it can help to get a loan if you put something up as collateral. I don't own a home, but I own my car. Can you get a loan with a car title?
You are right, you can use your car title as collateral for a loan. To use your car title specifically to get a loan, you’ll need a title loan.
To get a title loan, you’ll need:
- Your car’s title
- Proof of insurance
Each lender may also have additional requirements to qualify. Once you sign the title loan agreement, the lender has the right to repossess your car if you default on the loan or miss payments.
Another type of loan that uses your car as collateral is an auto equity loan. An auto equity loan uses your car’s actual cash value to determine your loan amount instead of the title. However, they can still repossess your car if you default.
Depending on your situation and credit score, you should explore other options first. Title loans are considered predatory and are illegal in many states. Some other options to consider are:
- A cosigned loan
- A personal loan
- PAL (Payday alternative loan)
- Check state and local community programs
- Talk with your lenders
If you’re considering a title loan because you need money fast, consider using the Jerry app. Jerry collects personalized quotes from 50+ top insurers like Nationwide and Allstate in seconds to ensure you’re getting the best price. The average Jerry user saves $8790 a year!
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