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How Do Car Title Loans Work?

approved car title loan

Getting a car is one of the greatest feelings in the world. It means freedom from relying on others for transportation or the instability of not knowing whether or not you will be able to get to work on time. Owning a car is one of many financial obligations that adults have, and all these financial obligations can often add up. If you’ve found yourself in a financial situation where you don’t know how you’ll pay for all the financial bills in your life, your ownership of a vehicle might come in handy. Taking out a title loan against the worth of your car is one of the most convenient and easy ways that you can take control of an uneasy financial situation.

What is a Car Title Loan?

A car title loan is a loan that you take out against the total value of your car. Most states have car title loan providers. However, each provider has its own rules and regulations regarding title lending. Title loans are calculated looking at several factors – from the age of the vehicle to the state that the car is in. Based on these factors, they determine an overall worth of the vehicle. You pay the loan back as you would any other investment, and once the loan is repaid in full, you retain complete ownership of the car.

How Does the Process Work?

First, car owners must fill out an application to determine their eligibility. Many title loan organizations haveonline title loan application options that loan applicants can do from the comfort of their own homes. Applications will ask for things like your driver’s license number, reference phone numbers, and information about the make, model, and the title of your car. If you fill this out online, typically what you will do from then is work with the title loan company to schedule a time to meet.

At this meeting, you will need to bring your car and the title to your vehicle, as well as identification. If you filled out the application to your title loan application before this date, the loan officer will meet with you to discuss your eligibility. From here, experts will examine your car, determining the mechanical and physical shape of your car before giving you an estimate on how much the car will cost. After this, the company will make an offer on your car based on the perceived value. Should you accept the offer, you will then turn over the title of the car to the loan agent and will receive a loan for the amount you discussed. Many title loan companies, including Midwest Title Loans, will allow you to drive away with your car after the process.


  • Do I need to own the car outright to be considered for a title loan? The answer to this question varies between all title loan providers. At Midwest Title Loans, we require those seeking a title loan to own their car outright. Not only does this ensure that everyone involved is on board with the title loan process, but it also ensures that you don’t end up paying more than you expected. Title loan companies that lend with a lien on the title buy the title from the lienholder, which means you can only get a loan for the difference of the worth of the car and the amount the title loan agency paid to get the lien. We strive for clarity in all aspects of our title lending, so we believe it is vital only to lend our customers the amount that their car is worth.
  • Do I need to be a certain age to take out a title loan? At most title loan agencies, lenders will ask that car owners be at least 18 years of age. Minors usually are not the outright owners of the cars they drive, and we only lease to those who own the car outright. Additionally, we believe that it is essential to involve parents in large financial decisions being made by a minor.
  • Will my credit score impact my ability to get a title loan? One of the best things about title loans is that they are not dependent on credit history. We use the worth of your loan as a legal assurance that you will pay the loan back. Financial institutions have too many customers to work with physical collateral, which is why they use the credit scores to assess the ability for a customer to make payments on time and in a manner that works for their institution. The problem with this is that it does not take into account the very complex backgrounds and situations that loan customers have, which often leaves very valuable customers without lending options.
  • Can paying off my title loan help my credit score? Yes! The fact that we do not use credit scores to determine the worthiness of a person’s financial history does not mean that we don’t understand the importance of a credit score. When you make payments, we report these payments to credit score agencies. Ergo, if you pay off your loan within the set limits and make on-time payments, this will ultimately help your credit score.
  • How long does the process of getting a title loan take? Title loans are great options for people who need a lot of cash quickly because most people walk away with a loan on the same day. If you apply online before visiting a title loan location, you often can cut your in-office time down to as few as twenty minutes.

Midwest Title Loans is one of the top title loan organizations in Missouri and Kansas. We are dedicated to creating financial solutions for a range of customers, whether you’ve had issues getting a traditional loan in the past or you need money quickly. In Missouri, we have locations in Kansas City, Gladstone, and St. Joseph. In Kansas, we have locations in Overland Park and Kansas City. The application process is simple and often only takes twenty minutes. For more information, or to schedule an appointment, contact us.


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330 W. 85th Street
Kansas City, MO 64114
Phone: (816) 363-8600
M-F: 10:00am – 6:00pm
Sa: 8:00am – 1:00pm

6420 North Oak Trfwy
Gladstone, MO 64118
Phone: (816) 436-7711
M-F: 10:00am – 6:00pm
Sa: 9:00am – 2:00pm

8212 Metcalf Ave.
Overland Park, KS 66204
Phone: (913) 381-2222
M-F: 10:00am – 6:00pm
Sa: 9:00am – 2:00pm

2500 State Ave.
Kansas City, KS 66102
Phone: (913) 281-9997
M-F: 10:00am – 6:00pm
Sa: 9:00am – 2:00pm