How Do Title Loans Work

Frequently asked questions about title loans and the application process

In & Out Title Loans has created the most authoritative and thorough guide below about title loans, our company, and how our process is better than traditional competitors. We’ve tried to cover everything here, so we encourage you to read it carefully and decide if a title loan is right for you.  If you still have questions after reading it, please give us a call at 844-567-6042 7-days a week or fill out the form to get started.

What is a title loan?

Picture of a car, title, and money to illustrate an auto title loan.A title loan has many names depending on the state you live in, but they all essentially represent the same thing. A car title loan is a type of loan secured by your vehicle. That is, you offer your lien-free (paid off) car title as collateral to secure the loan. The amount of money you can borrow is calculated based on the value of your vehicle and your ability to repay the loan. The terms and interest rates vary depending on the lender, but generally speaking, they are higher than other types credit. That’s why it’s important to select a company that will offer you the lowest interest rate for your loan. It’s also important that this be a short-term loan, so the interest payments don’t become overly burdensome. Typically title loans require no credit check, making them very appealing to the credit challenged. You can also continue driving your auto while you repay the loan.

Here are a few other names for a title loan:

1. Auto Equity Loan
2. Title Secured Loan
3. Pink Slip Loan
4. Title Pawn
5. No Credit Check Loan

One of the biggest misconceptions of this type of loan is that you can only use a car as collateral. While it’s true that cars are the most common types of vehicles put up for a title loan or pawn, you can also use trucks, motorcycles, boats, and even heavy equipment as collateral.

Who could benefit from a title loan?

Title loans are usually the last resort for someone to get access to the funds needed to pay an unexpected financial obligation. Because the cost of credit (interest rates) are relatively high, and because you could lose your car if you don’t repay the loan, we recommend that you explore other options before considering a title loan. Generally speaking, interest rates typically fall in the 35% to up to 100% range for a title loan. If you break that down, here’s how a repayment schedule would look:

Loan Proceeds Title Fee (amt. varies by state) Finance Charge Payment Schedule+ 36 payments of: Total of Payments Annual Percentage Rate (APR)
$4,000 $20.00 $2,607.90 $184.11 $6,627.96 35.99%

Here are a few other options that should be considered before an auto equity title loan:

1. A loan from friends or family.
2. A signature loan from your bank.
3. Using a credit card with a low interest rate.
4. Working out a payment plan with your creditor.

If you’ve explored other options and haven’t found a solution, then a title loan may be for you. Here’s a checklist that will help you determine if one will work for your situation:

1. You’ve tried to get access to funds through other means and have not been successful. Challenged credit may be the reason for this.
2. You own your vehicle outright. That is, you hold a lien-free title to your vehicle.
3. You can repay the loan in a relatively short period of time.

If the checklist above applies to you, you should strongly consider a car title loan to help you get the fast cash you need for your situation.

Who is In & Out and why are we the best option for your title loan?

In & Out Title Loans is a referral service working with hundreds of title loan lenders in the United States. We operate completely online and offer our services in all states where title loans are allowed by law. You can find the 39 states we operate in on our service area page. We use a processor that holds all the applicable licenses and credentials that state law requires enabling us to keep our costs low.

In & Out can offer you a variety of advantages compared to traditional title loan lenders. Here are a few of the biggest:

Access to a Network of Lenders

We have a network of premier lenders enabling us to shop for the best rates and terms for your title loan. We aren’t exclusive to any lender, and this enables us to find the best deal for you. This is a major advantage over traditional brick-and-mortar lenders. Don’t just go to the nearest title loan store, give us a try.

Experienced Industry Experts

We’re experienced professionals and are knowledgeable on navigating the title loan process. Because it involves paperwork, car appraisals, and other requirements, it can be daunting to navigate. We can streamline things for our customers and avoid any pitfalls that most people encounter. Furthermore, we love to answer questions and help our customers feel at ease. We also handle your business discreetly and compassionately. We’re standing by to help!

Completely Online Title Loans

In most cases, we have lenders that offer a completely online title loan process. This means that you won’t have to drive around and take your car in for an appraisal. This advantage cuts down on the stress and saves you money.

Open 7 Days a Week

This is VERY uncommon in the industry, and some title loan companies even use our services to help their customers on Sundays for this very reason. We’re standing by to help every day of the week!

Our Services are FREE

Yes, it costs you absolutely nothing to use our services! The lender who writes your loan pays us a small referral fee. To them, it is an advertising cost, not unlike a billboard, newspaper ad, or television commercial.

If you need a title loan, the case to use our services is very compelling. Our services are FREE, and you have nothing to lose. Apply on our secure form or give us a call today!

How does the process work after I fill out the form or give you a call?

Once you fill out the secure form or give our experts a call, our team will go through an initial evaluation of your information and get in touch with you right away. We’ll work to make sure you’re comfortable with the process and gather anything else the lenders would need.

What are the title loan requirements?

Though the specific requirements, or “stipulations” as they’re known in the industry, vary from lender to lender, here are a few of the most common that you can expect to encounter. Because of the long-standing relationships we have with our lenders, we know how to streamline the process and gather everything required. We can even get waivers on some stipulations because of the volume of business we do with them, even further simplifying things.

Clean Title

To offer your vehicle as collateral for your loan, it must be lien-free (paid off). You will have to fax, email, mail, or text the front and back of your title to us. From a lender’s perspective, this is what they’ll be looking for:

1. If the title is salvaged. Though it doesn’t discount you from getting a title loan, it does cut down on the vehicle value. If your title is salvaged, it will likely be listed in the upper right-hand corner of the front of the title.
2. If the car is owned jointly. This is referred to as “And/Or.” If you own the car jointly with someone (“And”), then you must remove them from the title, or they will have to be on the loan with you. A company cannot be listed as the owner either. You need to have full rights to put the subject vehicle up for collateral.
3. That the title matches your state of residency, and that you are applying for a loan in that state. There are some exceptions to this, but you should be applying for a title loan in the state you reside in.

Here’s an example of a vehicle title:

Sample vehicle title to show how title loans work

Proof of Income

Though proof of income can take many forms and is a little subjective, it will be necessary to prove to the lender that you can repay your loan. A credit check is usually not required, but proof of income is. You will need to fax, email, mail, or text this to us. Here are a few key points on this stipulation:

1. It must be current, usually within 30 days.
2. Unemployment income WON’T count as income because it’s temporary.
3. Child support or disability income DOES count because it is permanent.
4. If you don’t have income, it is possible to get a cosigner to help satisfy this stipulation.

As with everything here, if you are in doubt, give us a call. We can quickly let you know if what you have will qualify as income. We can also work with lenders to get special exceptions if it’s possible.

Proof of Residency

Usually, it is required that you be a resident of the state in which you are applying for a title loan. If you have any questions, please call us or fill out the form and we’ll evaluate your specific circumstances. To establish residency, you’ll need to provide a few of the following documents:

1. Utility Bill
2. Insurance Bill
3. Cell Phone Bill
4. Gym Bill
5. Mortgage Tax Bill
6. Regular Mail

The lender will be looking for the name, address, and date. They typically want to see them no more than 30 days old. You can email, fax, mail, or text them to us.

Valid Insurance & Registration

It is a requirement to have current registration and active insurance. You can fax, email, mail, or text this to us. You don’t need full coverage, and usually, any vehicle insurance will satisfy this requirement. If you don’t have insurance, we can help you obtain inexpensive insurance for your loan. Just let us know.

Vehicle Pictures

To do a proper appraisal of your vehicle, it is necessary for the lender actually to see your vehicle. Traditionally, this is done by going to the local title loan store near you and applying for a loan. This is not a good way to shop lenders for the best interest rates for your loan, so most of the lenders we work with can do the appraisal electronically with pictures of your vehicle. Here are a few points to keep in mind when you’re taking the pictures of your auto:

1. Make sure to get clear pictures of all four sides of your vehicle. The lender will be looking for damage, wear, and other factors that could affect the value of your car.
2. Stand back and get a clear image of your vehicle’s sides. Take these pictures as if you are about to list your car for sale. You want to get the highest value for your auto, and exceptional images will help you do that.
3. Take a picture of your odometer mileage. This is also a factor that determines value.
4. Take a picture of your VIN (vehicle identification number). The VIN is located on the driver’s side front windshield near the bottom or the door frame near the floorboard. The lender will want to verify that the VIN on the title and the VIN on the car match.

Once you have your pictures, you can mail, fax, email, or text them to us for review to make sure it meets the lender’s requirements.

Vehicle Video

Because of the online nature of the title loans, most of our lenders offer, sometimes the pictures aren’t enough to give the lender enough of an appreciation of your vehicle’s value. To help enhance the appraisal, some lenders as for a video. Usually, because of our long-standing relationships with the lenders, we can get this waived. In the cases where we can’t, use the guidelines for vehicle pictures and apply them to taking a video. You can email, text, or put in a data depository (Dropbox, Cloud, etc.) the video for our review.


Most lenders require references on the title loan application. Usually, it’s around 4 or 5. Though some lenders call and some don’t, if they do call, they are always very discreet when speaking with your reference. They just simply want to know that the reference does know you, and they don’t divulge any of the specifics related to your situation.

Once we determine the lender to match you with offering the best rates and terms for your auto equity loan and you are satisfied with the choice, we will securely send your package to them. We will also connect them directly with you.

Transfer to Lender

At this point in the process, you’ll start to work directly with the lender. They will process your application and let you know if there are any additional requirements. Before you get your funds, you will need to send the lender your title. The lender will pay for the shipment, and they need the title to apply a lien.