HOW TO GET APPROVED FOR A TITLE LOAN IN TEXAS
Apply For A Title Loan
Online or Give Us a Call
Tell us about yourself and what you need with a vehicle secured loan. We'll need to know your current vehicle information, ability to repay, and how much cash you need.
Easy Online Approval and
Documentation Process
We'll need an updated copy of your vehicle title, and will typically need to conduct a vehicle inspection. The underwriting process can be done in less than a day.
Sign Your Agreement
And Receive Your Funds
Pick up your money upon approval at any location in Texas, or have it deposited directly to your bank account. Borrowers may get their cash in as soon as one business day.
What's Required To Qualify In Texas
To qualify in Texas, your title must be lien-free, meaning the car is paid off, and your name is listed on the certificate of title as the owner. The title generally cannot have a co-owner listed with you, and you need a government-issued ID to prove you're at least 18 years old. Lenders will also check your income and ability to repay. You'll also need to show proof of residency in Texas to qualify. You may also need to provide proof that your vehicle is registered with the Texas Department of Motor Vehicles.
What Happens After I Submit An Online Application?
Once you complete an application, you can often complete the pre-approval and initial processing in less than an hour. After signing the contract, the lender holds your car's title until your loan is paid in full. The amount you can borrow in Texas is primarily based on your monthly income and the retail value of your vehicle. In many Texas cities, including Austin, Dallas, Fort Worth, Houston, and San Antonio, local ordinances cap the loan amount at the lesser of 70% of your vehicle's value or 3% of your gross monthly income. These cities also require that each renewal (payment) reduce your principal by at least 25%.
Interest Rates & Fees In Texas
Rates in Texas are higher than those for conventional unsecured loans because most applicants have limited credit histories. The equity in your vehicle serves as collateral, and approval is mostly based on your vehicle's value and your ability to repay. Based on OCCC state reporting data, the average fee in Texas ranges from $18 to $27 per $100 borrowed. When calculated over a standard repayment term, this typically results in an APR exceeding 300% annually. These rates are consistent with other short-term secured loans in the state, and the specific rate and terms you're offered will depend on the lender and your specific situation. Be sure the online company you work with is licensed to offer secured loans. This also applies to companies that act as registered Credit Access Businesses (CABs) in Texas.
How Much Can I Borrow Against My Vehicle?
You can borrow up to $20,000 with lenders in Texas. Loan amounts will vary significantly based on vehicle condition and your financial history, with a minimum loan amount of approximately $1,000. You can often complete the application process and get your cash through direct deposit within one business day. Although you don't need to show traditional full-time employment, most Texas lenders still require some form of income verification, such as bank statements, pay stubs, or proof of benefits.
How Long Does It Take To Get My Money After Approval?
Expect a streamlined underwriting process, with the ultimate goal of getting your money within one business day after signing the loan documents. The cash can be sent directly to your bank account, whether a checking or savings account. It can take 1 to 2 business days for funds to reach your account, depending on whether you receive them via ACH or bank wire. You can also pick up the cash in person at some lending locations throughout Texas.
Can I Get Approved With Bad Credit?
A low credit score doesn't necessarily disqualify you. Unlike traditional personal loans that rely mostly on FICO scores, a title loan focuses on your vehicle equity to find lending options even with poor credit. We can help you find lenders who may look past your credit score to offer an acceptable loan amount and repayment term. Contact us today to see if you qualify, even with bad or no credit. Some qualified borrowers can access up to 70% of their vehicle's resale value with a bad-credit title loan.
Can I Refinance Or Buyout An Existing Title Loan?
There's a chance that you can get another secured loan from a licensed title loan company in Texas, but your original loan will likely be bought out or refinanced with entirely new terms. A lot depends on how much your car is worth, minus what you owe on the outstanding loan with the other company. If the other loan is more than halfway paid off, the chances of qualifying for a new loan with improved terms are better. Regulations in Texas limit borrowers to one active title loan at a time, so any refinance would replace your existing loan.
The minimum loan amount is generally $1,000 for most lenders in Texas. Repayment terms for title loans are largely determined by your location and the lender. While terms can range from 12 to 48 months in unregulated areas of Texas, loans in cities with local ordinances, including Austin, Dallas, Houston, and San Antonio, are typically limited to four monthly payments. The annual percentage rate, or “APR,” for title loans in Texas varies widely, with effective annual costs typically well above those of traditional loans. In Texas, Credit Access Businesses (CABs) may charge a fee to arrange a title loan. Review the latest fee schedule and mandatory notice from the Office of Consumer Credit Commissioner (OCCC) provided to you by your state-licensed lender before signing.