How Much You Can Borrow With a Title Loan?

Your Income

During the application process, the title loan company will ask you to submit proof of your income. Some examples of proof of income include recent pay stubs, bank statements, or tax returns. 

The title loan company will review these documents to confirm that you have a reliable source of income that you can use to repay the money you borrow. 

Your lender will also evaluate your income to determine how much you can afford to repay. The results of this analysis may impact how much you are approved to borrow with a title loan. 

Type of Vehicle

Title loan companies accept a wide range of vehicles as collateral, including:

• Sedans
• SUVs
• Pickup trucks
• Minivans
• Coupes
• Convertibles
• Motorcycles
• RVs

If you own more than one vehicle, choose which one you want to use as collateral wisely. Some title loan companies limit how much you can borrow when using a motorcycle as collateral, for example. On the other hand, RVs are usually worth more than standard passenger vehicles, so you may be approved to borrow more money by using this type of vehicle as collateral. 

Your Vehicle’s Resale Value

Your vehicle is used as collateral, which is why the title loan company needs to know how much it is worth before determining how much you can borrow. 

The valuation process can vary depending on the lender. Some lenders will ask you to bring your vehicle in for an inspection after you submit an application, whereas others may send someone to you to inspect your vehicle. There are also title loan companies that allow applicants to submit photos of their vehicle instead of getting it inspected. 

Regardless of whether the lender inspects your vehicle or photos of your vehicle, they will consider a number of factors when determining its value, including:

• Make
• Model
• Year
• Condition
• Mileage
• Trim level

You cannot borrow more than your vehicle is worth, which is why calculating your car’s resale value is such an important part of the title loan application process.

Your Equity

Your equity in your vehicle can also impact how much you are able to borrow with a title loan. To calculate your equity, subtract the outstanding balance on your auto loan from your vehicle’s resale value.

For example, if your vehicle is worth $20,000 but you still owe $6,000 on it, this means you have $14,000 of equity ($20,000-$6,000=$14,000).

You must have equity in your vehicle to qualify for a title loan. Furthermore, you cannot borrow more than the value of your equity in your vehicle. Most title loan companies will allow you to borrow up to a certain percentage of your equity.

Your Location

Where you live can also affect how much you are approved to borrow. This is because a number of states have passed laws that establish minimum and maximum amounts for title loans. 

For instance, the state of Illinois has a law that limits each title loan to $4,000 or up to 50% of the borrower’s monthly income. In Mississippi, the maximum title loan amount is $2,500, but it’s much higher in New Hampshire, where each title loan can be up to $10,000.

Title loan companies must comply with these state laws. If your state has these restrictions in place, they may impact how much you can borrow.

How to Find Out How Much You Can Get for a Title Loan

You don’t need to try to do the calculations on your own. You can find out how much you will be able to borrow with a title loan in a matter of minutes. All you need to do is contact your title loan company and request a free loan estimate.

A loan estimate* will tell you important information about the title loan you qualify for, including the amount you will be able to borrow and the interest rate. If you want to find out how much you can borrow with a title loan, follow these steps to request a free loan estimate from 1(800)CAR-TITLE®:

1. Contact our loan specialists. There are two ways to get in touch with our team. You can call us directly at 1-800-227-8485 or submit your information using the form on our website. If you choose to submit an online form, someone on our team will reach out to you as soon as possible.
2. Answer a few questions about your vehicle. To create your loan estimate*, your loan specialist will need to learn more about your vehicle. Be prepared to provide basic information, including your vehicle’s make, model, year, mileage, and condition.

That’s all you need to do to get a free loan estimate. Once you receive your estimate, carefully review the terms. Your loan specialist will be available to answer any questions or address any concerns that you may have.

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