Best Online Title Loans of 2023

If you’re looking to get a title loan online, you might have noticed that there are a lot of companies to choose from. Not all online title loan companies are legitimate, so it’s important you choose one that’s reputable and trustworthy.

Good title loan companies have your best interests in mind. They understand that you need the loan for an emergency, such as an upcoming rent payment or medical bill. They also understand that you need the money fast, and at a reasonable interest rate.

Bad title loan companies, on the other hand, might offer extremely expensive interest rates along with many hidden charges, according to the Federal Trade Commission. It’s best to avoid them at all costs.

In this article, we’ll reveal the top online title loan companies that you should consider. We’ll also answer some frequently asked questions about car title loans so you’re fully prepared before committing to one.

The Best Online Title Loan Companies

Across the nation, there are four title loan companies that stand out from the rest: Max Cash Title Loans, LoanMart, Loan Center, and TitleMax. Many people have been able to land a quick title loan with these companies since you can easily begin their application process online.

What is a Car Title Loan?

A car title loan is a special type of loan where your vehicle title is used as collateral in exchange for cash. Note that the collateral is your title, not your vehicle. This is good news, since it allows you to continue driving your vehicle for the duration of your title loan.

Car title loans can be great because lenders usually won’t check your credit. In addition, the application process is usually very quick, and many people can get their money within one business day.

However, car title loans are typically short-term loans that involve small loan amounts at high interest rates. According to one article by the Consumer Finance Protection Bureau (CFPB), a typical loan amount is $700, charged at 300% APR. Because of this, car title loans are best used only in times of financial emergencies.

Do Title Loan Companies Run Your Credit?

No, title loan companies will not run your credit. This means that if you’re struggling with your credit, title loans can be a quick and easy way to get some emergency cash.

While your credit doesn’t matter in a title loan, it’s best to address your credit problems earlier rather than later. Credit repair is a service that can permanently raise your credit score, which can help you qualify for better loan terms in the future. We recommend reading our Ultimate Review Guide for Credit Saint to learn more.

How To Get a Title Loan

With title loan companies shifting more and more towards online application processes, getting a title loan is easier than ever. The process usually involves these five steps:

Once you get your funds, make it your top priority to pay off your loan in full and on time.

Where Can I Get a Title Loan?

As of this writing, title loans are not currently available in all 50 states. According to Cpnm.org, each individual state is responsible for coming up with their own auto title loan legislation.

For a quick overview of where title loans are legal, consult this resource by the Consumer Federation of America. However, title loan laws change relatively frequently. Because of this, you can always ask a Max Cash representative to see if title loans are legal in your state.

Note that since our top four companies are mostly online-based companies, you might have to travel across state borders to receive your loan if title loans are not legal in your state. 

If you live in one of the following states and want additional local title loan company recommendations, check out these articles.

When Should I Consider Getting a Title Loan?

Since title loans are expensive, getting a title loan only makes sense during a true financial emergency. The most common reason people get title loans include:

• Rent
• Utility bill
• Medical bill
• Car repair bill

In these cases, it’s justified to get a title loan if you’re sure you can fully repay it. On the other hand, we do not recommend ever getting a title loan if you plan to use it on a discretionary expense, such as a gift or vacation.

One other thing to consider is that most lenders will only offer you a title loan if you own your vehicle outright. If you’re still making payments on your vehicle, you may not qualify unless you hold significant equity in your car.

What is a Good APR for a Title Loan?

The definition of a “good” APR depends heavily on what state you live in. Each state has their own set of laws around title loans, and thus have different rules on what APR lenders are allowed to charge.

For example, while the average APR for title loans is 300% APR according to the CFPB, the situation is different in two states like Florida and Nevada:

• The Florida Title Loan Act states that lenders can only charge a maximum of 30% APR on the first $2,000 of any title loan.
• According to Nevada legislature, your monthly loan repayments cannot exceed 25% of your gross monthly income. This is why lenders in Nevada will request your proof of income as part of the application process.

Before accepting any loan contract, make sure you know the relevant title loan laws in your state to know what rate lenders are allowed to charge. Stay away from any company that violates the state legislature.

What Happens If I Don’t Pay Off My Title Loan?

Not paying off your title loan can have dire consequences. Since you gave up your vehicle title as collateral, the company may repossess your vehicle.

Repossession laws vary across different states. For example, in Tennessee, the TN Title Pledge Act states that lenders must give consumers at least 20 days after expiration of the loan contract before being allowed to repossess the vehicle. In Alabama, this is 30 days, according to the Alabama Pawnshop Act.

Repossession happens to approximately one in five title loan lenders, according to the CFPB. In addition, the same study also found that four in five title loans are not repaid in a single payment. This is why we must stress again that you must ensure you can fully repay a title loan before taking one out.

Besides losing your car, failing to pay off your title loan can severely hurt your credit score. This can show up as a default, which can remain on your credit report for seven years.

If you’re having trouble making repayments, we recommend simply reaching out to your creditor rather than trying to avoid them. Most are willing to give you additional time or work out a payment plan for your remaining debt.

Is Getting a Car Title Loan Worth It?

Yes, getting a car title loan is definitely worth it if you’re getting it for the right reasons. For those who currently have bad credit, title loans offer instant financial relief, especially if you have urgent bills you need to take care of.

While online title loans are indeed expensive, few other loan options are as quick and convenient. As long as you can pay off your title loan in full, there’s no reason not to consider it.

Conclusion and Next Steps

Online title loans are short-term loans that don’t check your past credit. As such, they are a great option for those needing quick cash to cover a sudden financial emergency.

This article highlighted four top online title loan companies that you should consider in your search. All of these companies have excellent track records when it comes to providing the best title loans at reasonable interest rates.

Max Cash Title Loans can help you secure a competitive online title loan in a matter of minutes. Once you sign up for their free platform, you can take advantage of their wide network of partner lenders to find the best loan for you.