Car collateral loans, also called title loans, let you use your lien-free vehicle title as collateral to borrow cash for emergencies. They are not loans using your car as collateral; rather, they use your title. They allow you to fund emergencies without having to leave your vehicle. Read on to learn more about getting a personal loan using your car as collateral in Texas.
Key Takeaways
- Car collateral loans in Texas allow you to borrow up to $15,000 using your lien-free vehicle title as collateral while keeping and driving your car during repayment.
- Texas car title loan requirements include being at least 18 years old, providing a valid photo ID, owning a vehicle with a clear title, completing a vehicle inspection, and proving your ability to repay.
- Applying for a car collateral loan in Texas starts with an online inquiry, followed by a phone consultation, in-person document verification, vehicle inspection, and loan approval. Approved borrowers may receive funds the same day or the next business day.
- The amount you can borrow using your car title as collateral depends on your vehicle's value, including its age, make, model, mileage, and condition. Borrowers with bad credit may still qualify if they meet the lender's requirements.
- Car title loans in Texas are best reserved for financial emergencies because missed payments can result in late fees or vehicle repossession. Review the loan terms, consider alternatives, and create a repayment plan before borrowing.
Can I Get a Loan Using My Car Title in Texas?
Title loans are personal loans that allow you to use your vehicle title as collateral to borrow emergency cash. You can borrow up to $15,000 based on your vehicle’s value. You must own your vehicle outright to apply for a vehicle secured loan.
Here’s how title loans work: if approved, we will place a lien on your vehicle’s title and keep it during the loan period. You can continue driving your car, truck, or van while repaying the loan. Once you have paid back the full cost of your auto title loan, we will clear the lien we placed on your title and return your title to you.
You should only use your car title as collateral for a personal loan in Texas when faced with emergency expenses that cannot wait until your next paycheck.
When Should I Get a Title Loan in Texas?
Car collateral loans in Texas are last-resort loans you should only use for urgent emergencies. Don't risk your vehicle title for nonessential expenses like a vacation, a concert, or a new phone.
If you face unexpected expenses you can't wait until your next payday for, a title loan may be an option. However, consider alternatives before applying, such as borrowing from friends, getting help from nonprofit organizations or state programs, or using money from your emergency fund.
If a title loan is your best option, here are the financial emergencies you can afford with it:
- Overdue bills (e.g., rent, mortgage, utilities, auto loan payments, credit card bills, etc.)
- Medical, dental, and veterinary expenses
- Auto and home repairs
- Unexpected travel costs
- Funeral expenses
Note: Before applying for a car collateral loan, make sure you have all the information you need to make an informed financial decision. Read through our terms of use and consumer disclosures.
What are the Requirements for a Car Collateral Loan in Texas?
To get a car collateral loan, you will only need a few required items. Texas car title loan requirements are simple; you only need three items to provide your age, identity, vehicle value, and proof of full vehicle ownership.
The required items for title loans in Texas are:
- Identification – To qualify for a loan in Texas, you must prove that you are over 18 years old. You can use a photo ID that displays your full name and date of birth, such as a driver’s license, passport, or Texas state ID, to verify your identity and age.
- Lien-free vehicle title – As mentioned previously, you will need to provide a clear vehicle title as collateral to get a vehicle equity loan. It must be in your name to qualify. If it isn't, go to your local DMV office to transfer the title before applying.
- Your vehicle for inspection – We will need to inspect the vehicle associated with your title to see what its value is. We accept cars, trucks, or vans. Your vehicle’s value will influence how much you can borrow.
You will also need to prove you can afford repayment by proving your income. Only borrow title loans if you feel comfortable with your ability to repay. Make a plan before borrowing to ensure you can make your payment on time.
How to Apply for a Car Title Loan in Texas
Gather all of the items above before starting the process to ensure you have everything you need. Double-check to ensure your name matches across your documents. You can then fill out our online car title loan application in Texas and visit our nearest store to finish the process in person.
The following is the approval process for Texas title loans:
- Submit our online inquiry form with your basic details
- Answer our phone call to discuss car collateral loan terms
- Bring your required items to our closest Texas store for verification
- Have your vehicle inspected for its value
- If approved, sign the loan agreement to complete the process
- Receive your emergency cash later that day or by the next business day
Tips for Handling Car Collateral Loan Repayment
You can get cash using your car title in Texas quickly with title loans, but you must have a plan for repayment. Failing to pay back what you owe can lead to late fees and possible vehicle repossession. Before applying, make sure you have a plan for repayment to avoid the downsides of failing to make payments.
Here are some tips for managing title loan repayment:
- Ask a loan representative when you are expected to complete repayment
- Put the monthly cost of repayment into your budget
- Cut expenses and use extra money to pay back your title loan
- Start working side hustles to repay the loan
- Make sure you only borrow what you need to make repayment easier
FAQs About Texas Car Collateral Loans
How much can I borrow using my car title as collateral in Texas?
Texas title loans are worth up to $15,000. The value of this secured personal loan depends on how much your vehicle is worth. We will inspect its age, make, model, condition, mileage, maintenance history, and modifications to determine how much you can borrow.
Can I use my car title as collateral if I still owe money on it in Texas?
You must fully pay off your vehicle before applying for car equity loans. We will need to place a lien on your vehicle title, which we can only do if it's fully paid off. Pay any outstanding liens, debts, or judgments before you apply for a car title loan in Texas.
Can I get a car collateral loan with bad credit in Texas?
Since you provide high-value collateral for auto equity loans, you can borrow money with bad credit. Your lien-free vehicle as collateral matters more than your credit score. As long as you meet our requirements and we are comfortable with your ability to afford repayment, you can get Texas title loans for bad credit.
Get Vehicle Collateral Loans in Texas – Borrow up to $15,000 Today!
With Texas Car Title & Payday Loan, Inc., you can get same-day car title loans in Texas for emergency expenses. Use your car title as collateral for a title loan and keep your car while you repay. Borrowers with all credit types are welcome to apply; just fill out our online title loan form. We will call shortly to explain how you can get approved in person in as little as 30 minutes!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
