Cash 1 Blog

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How to pay off a title loan

How To Pay off a Title Loan Fast

Updated on October 7, 2022


Among the convenient financial services offered by CASH 1 is a title loan or title pawn; a loaned sum based on the worth of the borrower’s vehicle, and unlike many other title loan institutions, CASH 1 can give their customers loans based on just about any vehicle which carries a title, from standard autos to RVs, to motorcycles or trucks. If you're still making payments on your car, we offer registration loans in Phoenix, AZ and the Greater Phoenix Area.

This is not just a service for those who have bad credit or no credit; knowing what is a title loan can be a convenient way to get a smaller sum of money in a short time without having to deal with banks and the paperwork involved as well as the usual ‘minimum amount’ that are usually required to take a loan out of a standard bank. Most of those lending institutions will not issue a loan for less than $20,000 though on occasion, some do offer sales on smaller loans. Also, there is often a financial penalty for paying off a bank loan before the end of the predetermined payment schedule.

How Do Title Loans Work?

if you're wondering how do title loans work, a title loan can get you a reasonable sum of money in short order, presumably because it is needed for some financial emergency or necessity. There are other benefits to a title loan as well, such as no penalty for early payoff, a customer is never loaned more than they can prove can be paid back, the terms are short so you won’t spend years paying the loan off, and you don’t necessarily need good credit as the loan is based on the determined value of your vehicle. Not only that, but you get to keep the vehicle during the term of the loan; it will not be kept in some storage yard somewhere while you try to figure out how to get to your job to pay back the loan.

As to keeping your vehicle during the term of the loan, you might be wondering what happens in the case of an accident. It is strongly recommended that you have full coverage insurance on your vehicle in case your car is totaled but still owe title loan payments. Full coverage insurance gives you peace of mind in that the vehicle will either be repaired or paid for in full, even if the accident might have been your fault. Of course, the choice is yours as to whether you want to cover the vehicle, but again, such a measure is highly recommended at least for the term of your loan.

A title loan is also different from a standard bank loan in that the term for paying off the loan is shorter and can be paid off sooner. For many people, there are functional aspects to this, and there are some tough aspects to it. A shorter term loan means higher payment amounts; all of which will be detailed before you sign any papers or accept a loan. Remember: right up until you decide to sign for acceptance of a loan, you do not have to take it. You can go through the application process free of charge just to see how much you might be able to get for your vehicle. In fact, it is recommended that you tell your professional loan facilitator that you are just inquiring to see what your vehicle is worth regarding a title loan.

Regarding the issue of payments, you will find they can be formidable, but they are not impossible. You will never be issued a loan that you cannot repay. It is best to think in terms of ‘hunkering down’ for a few months, living on a tight budget so you can repay the loan. Knowing this ahead of time is advisable, so you will be in the mindset of getting that loan paid off.

While there is no trick to pay off payday loans or title loans, we can offer you a few tips to make the process efficient and as stress-free as possible.

How to Pay off a Title Loan Fast

Tighten up.

As we said, the months during a title loan repayment period will require some tough budgeting and likely some sacrifice in the area of expenses. Make sure you know ahead of time what your situation will look like under the terms of the title loan and prepare for it. Remember, it’s temporary, and will be paid off much faster than a standard loan.

Talk to your lender.

If you run into additional financial difficulty, call your lender and speak with the title loan company. They want to work with you to get that loan paid off as it is in everyone’s best interest. Be honest with the lender; they’re accustomed to every possible situation and have dealt with all kinds of unexpected contingencies.


If it looks like you will not be able to pay off the loan in the expected timeframe, look into a consolidation loan that will pay off your title loan and allow you to keep your vehicles. These loans typically take much longer to pay off and can come with additional interest fees, but it will help avoid defaulting on the title loan.

Don’t take the full amount.

As tempting as it might be to take the entire amount of the title loan, try to take less than what you are offered if possible. This will leave you some ‘wiggle room’ and better prepare you to pay it off. Think of it this way: take only what you need.


If all else fails, consider selling your vehicle. If you took out a $1,000 lien on your car title but cannot pay it off, selling it for the full market value will help you pay off the loan and leave you some funds to buy a cheaper car if necessary. Don’t get discouraged if this becomes necessary. Remember that your loan is paid off and you are free to save up for a better vehicle in the future.

CASH 1 hopes this information has been helpful. If you find yourself in financial distress, see if title loans or auto equity loans are right for you.

Photograph of author 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.