The Types of People Who Look for Short Term Loans Secured Against their Vehicles

Some people think that title loans are ‘bleeding the poor’. However, this is perhaps not a fair description. After all, it is not as if title lenders are chasing people to apply for loans. Rather, they offer an emergency service to people who need money in a hurry. And it certainly isn’t true that only people who have a low income apply for these loans. Anyone is able to apply, so long as they own a vehicle.

Car title loans are short term loans. This means that they are most suitable for people who urgently and unexpectedly need some money. Their car may have broken down, they may have a medical bill, had an emergency repair and so on. In most cases, people will use their credit card to pay for these bills, but they may not have enough balance. Unfortunately, a regular loan will not be a viable option because it takes too long to apply for them and for them to be paid out.


When you apply for car title loans, your FICO score is generally irrelevant. Of course, it does play a factor in making it more difficult for people to apply for more traditional forms of finance. Someone with really good credit may be able to ask their credit card provider to increase their credit, or they may ask their bank to give them an overdraft. However, if someone has bad credit, this will not be an option.

If you do decide to apply for a title loan, you have to be aware of the fact that it is a short term loan. This means that it generally has to be paid off within 30 days. Do make sure that paying this loan back is top on your budget list, as the loan is secured against your car. If you don’t pay it back, your vehicle will be repossessed straight away.

There are four big benefits to car title loans:

  1. You can apply for them regardless of your credit score, so long as you own a vehicle.
  2. The amount you will be issued tends to be quite low, so you should be able to pay it back.
  3. It is a short term loan, so you don’t end up in years of unmanageable debt.
  4. The loans are issued incredibly quickly, sometimes even the same day.

Applying for these types of loans is also very easy. While, in the past, it would mean visiting a store where you could hand over your title deed and a spare key of your vehicle, you can now generally arrange the entire loan online. The acceptance criteria are also very easy to be met, and usually include:

  • That you are at least 18 years old (sometimes 21).
  • That you are a legal and permanent resident of this country.
  • That you own a vehicle outright, free from any other liens (including car finance).
  • That you have a valid bank account with direct deposit facilities.

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