Everything you need to know about title pawns and title loans
A title pawn (also called a title loan) is a short-term secured loan where you use your vehicle's title as collateral. You can continue driving your car while repaying the loan. The lender holds the title until the loan is fully repaid.
This type of loan is designed for people who need quick cash and own their vehicle outright. It's a popular option for those who may not qualify for traditional bank loans due to credit issues.
Title loan amounts typically range from $500 to $10,000, depending on your vehicle's value. Most lenders offer 25% to 50% of your car's current market value.
Factors that determine your loan amount include:
No, most title loan lenders do not require a credit check. Your vehicle serves as collateral, so your credit score is typically not a major factor in approval.
This makes title loans an accessible option for people with:
The lender's primary concern is the value of your vehicle and your ability to repay.
To qualify for a title loan, you typically need:
Some lenders may have additional requirements depending on your state and loan amount.
Title loans typically have high APRs ranging from 36% to 300%, depending on your state and lender. Some states regulate these rates more strictly than others.
State APR Examples:
Important: Always review the APR, monthly payment, and total cost before accepting a loan. Use our loan calculator to see estimates for your state.
Yes! In most cases, you can continue driving your vehicle during the loan term. The lender only holds your title as collateral.
You maintain full possession and use of your car as long as you:
This is one of the major advantages of title loans over traditional pawn transactions.
If you cannot repay the loan, the lender has the right to repossess your vehicle. This is the primary risk of title loans.
Options if you're struggling:
Warning: Repossession can happen quickly (sometimes within 30 days of default) and you may still owe money if the vehicle sells for less than your loan balance.
Most title loan approvals happen within 30 minutes to a few hours. Once approved, you can often receive your cash the same day.
Typical timeline:
Title loans are legal in many states, but regulations vary significantly. Some states allow them with caps on interest rates, while others have banned them entirely.
States where title loans are common:
Georgia, Texas, Florida, Arizona, Tennessee, South Carolina, Alabama, Mississippi, Missouri, Nevada, Illinois, Virginia, and others.
States with restrictions or bans:
New York, New Jersey, Pennsylvania, Connecticut, and several others have strict regulations or prohibitions.
Check our state-specific pages for detailed information about your area.
The terms "title pawn" and "title loan" are often used interchangeably, but there can be technical differences:
Title Pawn: Technically involves "pawning" your title - you surrender legal possession of the title while keeping the vehicle.
Title Loan: A traditional secured loan where the title serves as collateral but you maintain legal ownership.
In practice, both products work similarly: you borrow money using your car title as collateral and continue driving your vehicle while making payments.
Yes, most lenders allow early repayment. Paying off your loan early can save you significant money on interest charges.
Before paying early, confirm with your lender that:
Most reputable lenders do not charge prepayment fees, but always verify your loan agreement terms.
Once you've fully repaid your title loan (principal + interest), the lender is required to return your vehicle title to you.
Process:
If the lender delays returning your title, contact your state's consumer protection agency or Department of Motor Vehicles.
Use our calculator to see your estimated payment or get a free quote from local lenders.