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How can I get a title loan with bad credit?

Can You Get a Title Loan with Bad Credit?

Updated on July 7, 2025

 Loans

What you should know

  • Car title loans are great for fast cash if you own your vehicle outright.
  • Bad credit title loans use your vehicle as collateral, helping you access quick cash despite poor credit.
  • Applying for bad credit title loans is easy. You'll need to submit some basic info and documents, and you could receive funds by day's end.

When confronted with a financial emergency, the mere mention of these two words—credit score—can raise your anxiety levels. Your credit score shows how well you've handled money in the past and can affect whether you can borrow money in the future. However, a helpful option called title loans can give you a chance to get money, even if you don't have great credit.

What is a Title Loan for Bad Credit?

A title loan is a type of loan that lets you borrow money using your car as collateral. This means you can use the value of your car to get cash quickly. The amount of money you can get with a title loan often depends on how much your car is worth, who you borrow from, where you live, and if you can pay it back. The type of vehicle you have, like a car, truck, or SUV, plays a big role in deciding how much you can borrow. Things like the brand, model, year, how many miles it has, and how well it's taken care of matter, too. Usually, you can borrow up to $50,000.

How Do Title Loans Work?

To get a title loan, you must own a vehicle that has a title free of any major liens. When deciding loan eligibility, the loan company will mainly focus on your car's worth and your ability to repay the loan, and not typically your credit score.

With title loans, the loan term could be relatively short, and the interest rates can be higher than other types of loans. This means you must read the loan details carefully and ensure you can afford to repay it. While the loan is being repaid, the lender may place a lien on your vehicle, and the vehicle could be repossessed if payments are not made on time.

Can You Get a Title Loan with Bad Credit?

If you have a bad credit score, you might not find help from regular banks. Title loans can be useful because they don't usually check your traditional credit score. Instead, they mainly look at how much your car is worth and your ability to repay the loan. This means you can get money quickly, sometimes within one or two days, without much hassle.

Even though title loans can be easy to get, they can be expensive because of higher interest rates. However, for those who need money fast and don't have good credit, using a car to get a loan can be a helpful option. You can still drive your car while paying the loan.

Discover more: How to Get a Title Loan [Infographic]


What are the advantages of title loans for bad credit?

Advantages of Title Loans for Borrowers with Bad Credit

If you have bad credit, title loan lenders may be able to help when you need money quickly. These lenders allow you to get cash quickly without going to a bank.

  • Acceptance of Various Credit Types: Title loans are accessible to people with all kinds of credit histories, as the loan is secured by the vehicle.
  • Quick Approval Process: The application process is swift, often taking as little as 30 minutes, without the need for extensive credit checks or paperwork.
  • Flexible Loan Amounts: The loan amounts can be flexible, depending on the equity in your car, offering various levels of financing tailored to the borrower's needs.
  • Option for Poor Credit Borrowers: Title loans are particularly attractive to individuals with less than stellar credit histories, as they offer more lenient requirements than traditional lenders.

Finding a Reliable Lender

When looking for a lender, it's important to find one who is honest and treats customers fairly.

Some companies, like CASH 1, are willing to help people with bad credit obtain the funds they need. They look at factors like how much you earn and your loan repayment ability. Not all title loans require a traditional credit check, so they can be attractive loan options for people with poor or no credit. It's a good idea to compare different online lenders to find the one that fits your needs.

The Application Process

Applying for a title loan might seem scary at first, but it's pretty simple and fast. You usually have to fill out a form and provide your personal information, including your income. Some lenders may ask for additional documentation, such as a photo ID or proof of income.

Most lenders want to see your car to check its condition and value before deciding how much money they will lend you. Once everything is approved and you agree on the loan amount, you will receive the cash.

Some lenders might ask for a second set of keys, but don't worry—you can still drive your car while paying back the loan. Even though applying for a title loan is straightforward, you should consider whether you can pay the loan back on time to avoid financial problems.


Tips for a successful loan application

Tips for a Successful Loan Application

To make getting a title loan easier, here are some helpful tips:

- Make sure you have any required documents, like your photo ID, car title, insurance papers, and spare keys, if needed.

- Consider whether you can afford the monthly payments by looking at your income and other expenses.

- Research how much your vehicle is worth to get a good idea of how much you can borrow.

- Review the loan’s interest rate and other terms before agreeing to a title loan.

- Use online tools like a title loan calculator to estimate how much you can borrow and how to repay it.

Following these tips makes you feel more confident about the title loan application process.

Discover more: Tips to Get the Best Rate on a Secured Loan with Car Title

Don’t Default on Your Loan

There can be serious consequences if you default on a title loan. Lenders can take your car back if you don't repay. Missing loan payments can mean losing your car. While most title lenders don't report to traditional credit reporting agencies, losing your car can still hurt your credit score if they report the default.

The Final Word

Title loans can be an appealing choice for people with a bad credit history because lenders usually don't check your FICO score. But you could lose your vehicle if you don't pay it back. Title loans usually have higher interest rates than other loans, which means you might pay more money overall.

The application process for title loans is fast, and you can often get your money within one business day. However, if you don't pay on time, you could lose your vehicle. Understanding these risks and handling your loan carefully is important to avoid problems later on.

 Joseph Priebe

Joseph Priebe

Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.

With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.

When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.