How Does A Car Title Loan Work?

Car title loans are for when there is a need for emergency quick money now, no matter the reason. A title loan advances cash like a payday loan or loan through a credit card but they differ in interest rates, payment plan, loan limit, and even loan term. How does a car title loan work?

How Does a Car Title Loan Work?

A car title loan, auto loan, or pink slip loan, is a secured loan using the title of your car as collateral to get cash now. Your car’s resale value is evaluated using awarding you a percentage as a car title loan. With a car title loan, you’ll get a significant amount of money in return for the loan. You can get up to 85% car title loans of your car value.

Typically, a car title loan is for a small amount of money and for a short duration. To get a car title loan, you give the lender the title to your car. That can be either a car, truck, or motorcycle. You can also pay the potential lender a fee to borrow the money. The repayment terms will vary by company.

Car Title Loans

Car title loans circumvent the stress of conventional bank loans. This type of loan is a secured collateral loan, meaning, that to get a car title loan, you are required to use your vehicle as collateral in exchange for a fast cash advance. The collateral is your car title! When you get a car title loan, you pay off the loan including simple vs compound interest. Whatever emergency situation — urgent medical bills, outstanding utility bills, emergency home repairs, or tuition fees, you can use a car title loan. A car title loan is easy to get using your car as collateral. To get a car title loan, you must first qualify for the loan. To qualify for an auto title, cash advance, you must meet the following car title loans criteria:

Be at least 18 years old with ID

Own a car with enough equity to suffice a loan

Proof of steady income to pay off the car title loan — this can be in the form of a pay stub or bank statement recently issued.

Pink Slip Loan

With a pink slip loan, you are borrowing money using your vehicle’s equity, or current value. The lender goes on the title of your car as a lienholder for collateral car title loans. Similar to an auto equity loan, you are using your vehicle as collateral for equity car title loans. Your car will be evaluated with the Kelley Blue Book.

In California, the title is pink but, in some states, it may be blue or green. However, most should know that a pink slip loan means that you’re using your car’s title to get fast and easy cash through a lender.

Are There Risks Involved?

You do not have to pawn your car! Simply surrender your car title or pink slip! This is how a car title loan works! Failure to comply with the loan payments as agreed will end in default on your loan. When you default on your loan, your lender can seize your car and auction it to recover the debt; called repossession. Car title loans vary lender to lender — some will impound your car if you default, others might work with you to clear your debt. TFC Title Loans falls in the latter category.

What Are the Benefits of a Car Title Loan?

A car title loan car reaps a number of benefits. That, of course, would result on your unique financial situation. It’s understandable and we’ve all been there, when money is tight and desperately needed, options can be limited. That’s why a car title loan might be a solid option for you. An auto title loan provides the emergency funds needed to alleviate financial stresses that can occur at the drop of a dime. We’ve all been there and we understand the need for cash when your strapped for it. Everyone can use a helping hand, and car title loan is just what that is. Here are a few of the benefits that come with a car title loan:

Quick cash & an easy application process online or in-person

Credit Doesn’t Matter in this Scenario

With a vehicle, you can qualify easily

Cheaper Than Cash Advances

Convenient Repayment Options based on your income levels and unique financial situation

Relieves Stress in times of need!

Read more about title loans from:

How Can You Get A Car Title Loan?

Getting an auto title loan for your vehicle and funds is easier than ever. Most lenders allow for online applications, making the process quick and simple. How can you get a car title loan? Here are few simple steps to follow when searching for a lender and applying for an auto title loan online or in-person.

Fill out an online car title loans application, call us, or visit us at one of our nationwide locations

Get quoted for car title loans

Submit the required car title loans documents

Pass vehicle inspection for car title loans

Sign the car title loans contract

Receive fast cash and spend it however you would like

Can I Get A Car Title Loan with Bad Credit?

Typically, your poor credit score can disqualify you from getting a personal loan. Nevertheless, it is different from car title loans! Most people who need emergency money (car title loans) are already in a tight spot. While a person with a perfect credit score is the ideal candidate for a loan, a person with a poor credit score can also qualify for a car title loan! It gives consumers the chance to get a car title loan in those desperate times of need or personal emergencies.

A credit score below 600 will qualify for a car title loan provided there is enough vehicle equity. Remember, when applying for a car title loan, or any type of credit, it’s highly advised you understand your finances and know what you can truly afford to pay back.

TFC Car Title Loans specializes in helping people with a bad credit score. Therefore, we do bad credit car title loans. Yes, your credit history will not bar you from instant title loan approval. The most important question is: can you repay the loan? If yes, then you qualify for car title loans! It is easy to get a car title loan with bad credit. Below is an outline of how does a car title loan, perfect credit score or no credit score at all.

Documents Required:

Your car title or pink slip

State ID or Driver’s License or Passport

Proof of in-state residency — Utility bills can be used for this form

Proof of income — This can be in the form of a pay stub or recent bank statements

Clear, identifiable photos of your car’s interior, exterior and mileage

At least two references

Why Choose TFC Title Loans?

Since 1994, TFC Title Loans has been a top car title loan lender! We provide our customers with top-notch service and the funds they need during emergencies and financial stress. Visit one of our ‘title loan places near me’ to file a car title loan application, visit our website to fill out an online car title loan application, or do an over-the-phone car title loan application. Once you are qualified for the loan, you will receive an instant car title loan approval!

You must then pass a vehicle inspection, first. Afterwards, though, you’ll receive the funds requested to use how you wish. Our title loans are affordable and we work with all types of credit. There’s no need to worry about having a credit check ran on your report. This makes the process of getting a title loan much easier and tailored to your financial situation and needs. Read more about car title loans from

If you prefer in-person applications, we have offices situated all throughout the United States. This makes it easier for our customers to apply, ask questions and pay back their car title loans in-person at a TFC office. From the Western Coast of California to the Atlantic shores of New Jersey, we have offices in convenient areas to adhere to your needs!

Once your car is approved, you can receive cash via direct deposit, MoneyGram, or check. The beauty of how car title loans work is that you can get quick emergency cash now! Now that you know how does a car title loan work, call us at 84–242–3543. “How does a car title loan work” is brought to you by TFC Loans © 1994

The following are a few ways you can get a loan with bad credit or get a loan with no credit:

1. Borrow Money from Friends or Relatives

Most people will tell you what borrowing a significant sum of money from a friend or family member might not be the best idea. If you go about it in the right way, however, it can be one answer to the difficult question, “can I get a loan with no credit?” When it comes to having someone lend you a helping hand, there are two relatively easy ways to go about getting a loan with no credit.

Get Someone to be Your Co-Signer

One of the easiest ways to get a loan with no credit is to have a direct relative co-sign for you. A co-signer enters into an agreement making them responsible for the loan in the event you find yourself unable to pay it off. When learning how to get a loan with bad credit, be careful with this option. While anyone can be your co-signer, it’s generally recommended that you go to a direct relative such as a sibling or parent. Be certain that the relative co-signing for you acknowledges the risk inherent in the agreement. The loan in your name on which they co-sign will wind up having an effect on their credit report.

And of course, they are taking on full responsibility for the principal balance of the loan in addition to any interest accrued. If you fail to pay back the loan, they will not only be on the hook for the remaining balance, but their credit score could take a hit. A co-signer with a high credit score will enable you to get almost any loan they might be eligible for themselves. Having a third-party available to cover the cost of the loan in case you cannot do so gives the lender a greater degree of certainty in providing a loan.

Direct Personal Loans

Alternatively, you can also ask a friend or family member for a direct personal loan. If you treat this like a formal business transaction it can work out without straining the relationship you have with the person. It’s best to create a written agreement for the loan. Specific details like how much you intend to borrow, what kind of monthly payments will be made, the date the loan is supposed to be paid off by, and, if appropriate, what collateral you have decided to put up for the loan.

If you really want to get serious, you can have the written agreement looked over by an attorney and notarized at your local notary, making it 100% legal and binding. That way there’s no ambiguity and it’s less likely anyone’s feelings will be hurt if anything goes wrong. This is the toughest way to get a loan with bad credit!

2. Give your car or home for collateral

If you’re having trouble getting a loan because you have no credit or bad credit, you may need to put up collateral. A collateral loan is different than an unsecured loan, whereby a creditor’s only recourse in the event of your defaulting will be to pursue legal action against you. More than anything, lenders want to get their money back after lending it out. They’d rather not deal with having to bring legal action against borrowers who can’t repay their loans. With collateral, the lender has a sort of insurance policy against you defaulting on your loan obligations.

Collateral is defined as an asset that a lender claims the rights to in the event the borrower fails to pay back their balance. Any asset that is allowed by law and accepted by a lender can be used as collateral. For the most part, lenders have a preference for assets that can be easily valued and sold. A savings account, for example, is a perfect form of collateral. This is because lenders can assess exactly how much it’s worth and collect it easily. The most common types of collateral are:



Bank accounts

Equipment such as machine tools

Investments of any kind

Collectibles such as coins or rare stamps

Valuables such as jewelry

If you own a business, future payments from customers (also known as receivables). Or, if you have any assets like these, some lenders may allow you to get a loan with no credit if you’re willing to offer them up as collateral.

3. Take out a mortgage on your property

If you own a home, you can use this to your advantage. There are many ways to convert the equity in your home into a loan of some kind. The first and most obvious way is to sell your home. You can either find a smaller, more affordable home in your area or move somewhere that real estate prices are lower. If you’re age 62 or older, you have the option of taking out a reverse mortgage on your home. A reverse mortgage involves receiving monthly payments while reducing the amount of equity in your home.

If you have parents who are homeowners, they can enact a “sale-leaseback”. This involves a sale of the home followed by a new loan being created for you. Sometimes parents do this as a way to take equity out of their home while they downsize and let their kids enjoy affordable rental rates. This is how to get a loan with bad credit.

4. Car Title Loans

If you own a passenger vehicle, you can always apply for a car title loan. A car title loan is a form of collateral loan that applies specifically to cars, in case you hadn’t guessed. The amount you can borrow depends on the wholesale value of your car. Now you have a few answers to the question, “can I get a loan with no credit?” While the landscape may look bleak, it certainly isn’t hopeless. Learn more at

Asking Friends or Family for Personal Loans

You can always ask a friend or family member to either give you a direct personal loan or co-sign on another loan for you. Some lenders may be more lenient if you offer up collateral. Your home equity can be used to acquire a loan in more ways than one. And last but not least, you can always take out a car title loan with TFC Title Loans. Now you know how to get a loan with bad credit!

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