Tilte Loans Explained

When you need money fast, you turn to wherever you can get it. After all, you have a life that you need to keep on track. If you need a little extra to cover rent, groceries, a surprise auto repair, a sudden illness, a late paycheck, or anything else that empties your bank account fast, you may consider a title loan.

What is a title loan?

A title loan lets you borrow money based on the value of your car. The amount you receive can be based partially or even entirely on the vehicle. Very often, the lender will request your pay stubs as a proof of income and perform credit checks, both of which may impact the loan amount.

If approved, you’ll generally be asked to repay the loan in a single lump payment, regardless of amount, and you’ll usually have a very short time to repay the loan (usually less than 30 days).

How do title loans work?

Title loans are fairly simple. You present your title along with whatever forms of ID are required, then the title loan lender looks at the value of your car and your credit history. If you’re approved, the title loan lender will cut you a check (in some states a credit check is also required).

Title loans offer a set amount of time until you need to repay the loan plus a monthly fee. You’ll be required to give the title loan lender your car title as well as a key to your car, but you’ll still be able to drive the car.

Title loans vs title pawns

Aside from title loans, there are also title pawns. Under this arrangement, you get the money you need just as quickly as a title loan, but you surrender the vehicle.

What happens if you don't pay a title loan back?

Title loans are risky, and when you’re desperate for cash to cover your needs, they may be tempting. However, keep in mind that if you don’t repay your title loan, the lender may take your car. According to the Consumer Financial Protection Bureau (CFPB), roughly 20 percent of title loans result in repossession.

Many people choose to take a second title loan out of desperation. Basically, if you’re unable to repay your title loan in full, your title loan lender may allow you to “rollover” the loan. In exchange for another 30 days to repay your title loan, you’ll pay more interest and more fees.

Because of this, LendUp strongly discourages taking out title loans, as they can lead to a never-ending debt cycle and financial problems down the road. Luckily, there is another option that does not involve risking your car title or getting stuck in a title loan debt trap.

When you need a small loan, LendUp is a better alternative

Where available, you can get an unsecured personal loan from LendUp that doesn’t require collateral. You don’t even have to have good credit in order to apply, and if approved, you can get your cash in as little as one business day.

We explain in what states our loan products are available and our interest rates and fees upfront so there are no surprises. Just fill out the LendUp loan application to get started today.

Get Started Here

Apply for a LendUp Loan here:

What is LendUp?

LendUp is a socially responsible direct lender dedicated to helping our customers meet their short term needs.

Learn more about LendUp »

Apply in as few as 5 Minutes

Instant Decision

Good Credit not Required

Direct Lender

What people are saying


Hear from our customers

Testimonials reflect the individual's opinion and may not be representative of all individual experiences with LendUp. Customers received compensation in the form of points on the LendUp Ladder.

Learn more about our customers »