Texas auto title loans

If you have poor credit and struggle qualifying for traditional financing, auto title loans can be a convenient way to cover unexpected expenses life throws at you. But Texas places very few regulations on these short-term loans, and many businesses use a loophole to charge high fees that lead to APRs in the triple digits. Although these title loans can be helpful in a tight spot, you could lose your car if you fail to repay.

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Name	Product	Filter Values	Loan amount	Turnaround time	Requirements
Max Cash Title Loans			Up to $50,000	Same business day to 1 business days	Must be a US citizen or permanent resident, 18 or older with a regular source of income.	With a quick online application, Max Cash could help connect you with a lender, finding you options in minutes.	Go to site More Info		loading Fetching your data...
AutoTitleLoans.com Car Title Loans			$500 to $10,000	Varies by lender	Have a regular source of income, not be involved in any bankruptcy proceedings, be a US citizen or permanent residence, be at least 18 years old (varies by state).	Quickly find a lender and potentially borrow up to $10,000 by using this auto title loan connection service.	Go to site More Info		loading Fetching your data...
LoanMart Car Title Loans			$2,500 to $50,000	1 business day	Resident of an eligible state, car title in your name, proof of income, valid state ID	A LoanMart auto title loan allows you to borrow money against your car, even if you have bad credit.	Go to site More Info		loading Fetching your data...
Finova Financial Auto Equity Loans			$750 to $5,000	as little as one business day	Must live in AZ, CA, FL, NM, SC or TN. Must own your car outright, have a valid car insurance policy and be a US citizen or permanent resident.	Short-term loans secured by your car title. Repayments accepted through MoneyGram if you don't have a bank account.	Go to site More Info		loading Fetching your data...

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Where can I get an auto title loan in Texas?

You can find auto title lenders at physical stores throughout Texas, especially in large cities like Dallas, Austin and Houston. But even if you don’t live in a major hub, you can likely find an auto title loan shop near you due to the growing short-term loan industry.

If you don’t want to spend hours at a title loan store, many allow you to start the application process online and then ask you to come in to have your vehicle inspected. This can speed up the borrowing process and get you the money you need faster.

Unfortunately, there aren’t many lenders that work entirely online. The inspection process is to ensure that your car is in good condition if it needs to be repossessed. Because of this, almost every auto title lender requires you to visit a lot and have a physical inspection before you’re approved for a loan.

Can I get an auto title loan online in Texas?

Although you can certainly apply for an auto title loan online, you probably won’t be able to complete the entire application process without visiting a physical location.

Each lender has its own process, but in general, you can expect to go through the following steps.

1. Compare your lender options in the table above.
2. Visit the provider’s website and complete the application with information about you and your vehicle.
3. Wait to hear back from a loans specialist about the rates and terms you qualify for.
4. Set a car inspection appointment.
5. Visit the lender’s storefront and bring any required documents.
6. Have your car inspected.
7. Finalize your application and receive your funds.

When visiting a provider’s site, always check that you’re applying through a secure page and that the lender abides by Texas laws.

What are the auto title loan laws in Texas?

Texas places very few regulations on auto title loans. The interest rate cap is set at 10%, but you’ll find many lenders are actually Credit Access Businesses (CABs) — businesses that facilitate loans between borrowers and lenders that are unregulated. Don’t be surprised if your APR is in the triple digits. This is because Texas doesn’t set a limit on the fees lenders can charge, which average to about $23 per every $100 borrowed.

Other notable laws include:

• Term limits of 180 days. No single loan can exceed a term of 180 days, including renewals or rollovers.
• License required. Both lenders and CABs must be licensed by the state of Texas to provide and facilitate auto title loans.
• Unregulated repossession. Lenders aren’t required to notify you or obtain a court order to repossess your vehicle.
• Loan terms must be clearly stated. Texas requires lenders to provide the full terms of your loan, including fees, interest charges and renewal costs.

Some cities have their own ordinances that regulate auto title loans further. These can include restricting lenders from operating in certain areas or requiring loan amounts be based on a person’s income. Check your local laws to make sure your lender is operating legally on a state and city level.

Auto title loan requirements in Texas

Texas doesn’t have any specific requirements, but you’ll still need to meet basic auto title loan conditions to be eligible:

• Have a lien-free car title.
• Have a valid driver’s license or state ID.
• Be at least 18 years old.

A lender may have its own requirements you need to meet, so check on its website to be sure you qualify before applying.

Alternatives to consider before taking out an auto title loan

With sky-high interest rates and the risk of losing your car, a costly auto title loan could be risky when you’re not in financial shape to pay it back on time. You could save money and avoid an auto title loan by looking into lower cost — and sometimes free — alternatives.

• Local resources. Local government agencies, nonprofits and charities often offer free financial services and help with things like food or utilities for those in need.
• Loans from friends and family. Though it’s not the easiest conversation to have, your loved ones might be willing to help you.
• Installment loan. Available online and from some in-store lenders, installment loans tend to come with longer repayment terms and lower interest rates than auto title loans. This could be a good option for people looking to build credit, since many installment loan providers report payments to the credit bureau.

Bottom line

Although auto title loans are easy to get when you’re in a financial crisis, you run the risk of making your problems worse if you can’t repay in time. Texas’s lack of regulations means these short-term loans can get expensive. And if you can’t repay it within six months, your lender can repossess your car without warning. As short-term loans, they can be helpful in emergency situations but shouldn’t be used to cover long-term financial issues.

To learn more about how they work, read our guide to auto title loans. Or if you’re not sure this is the right option for you, consider your alternatives.

Frequently asked questions

• Is there a limit to the amount of time I can roll over a loan?

  No. Texas doesn’t have a cap on rollovers or refinancing, so if needed, you can roll over your loan until you reach the 180-day term limit. This will lead to multiple fees, and the cost of your title loan may skyrocket. If you don’t think you’ll be able to pay off your loan within the short two- to four-week period most lenders give, you may want to look into other options first.

• Which laws apply to title loans in Texas?

  Texas Finance Code title 5 §§ 393.001-393.628 governs title loans for the entire state, however, certain cities have specific ordinances that further regulate short-term lending.

• What act governs Credit Access Bureaus?

  Businesses register as CABs under the Credit Services Organization (CSO) Act. Rather than lending to you directly, they instead facilitate loans between you and a lender.

• What happens if I default on my loan?

  Your lender may choose to repossess your vehicle. Texas doesn’t have any laws surrounding repossession, so your lender won’t have to notify you or acquire a court order to start the repossession process.

  You’ll be responsible for any costs the lender incurs during the repossession process, including fees for rekeying your vehicle and putting it up for auction.

  If the amount the lender receives at auction doesn’t cover the cost of your loan, Texas law requires that you pay the rest. However, if your lender makes more than the cost of your loan, it’s required to provide you with the surplus funds.

  To learn more, read our article about what happens when you default an auto title loan.