Get a Title Loan in North Carolina with Max Cash^® Title Loans

While approval for a traditional bank loan often hinges on a strong credit score, title loans operate somewhat differently. Because your car's title serves as collateral for the loan, your credit score is typically not the primary factor in determining your eligibility, although it can be considered.⁵

Many title loan lenders are more interested in the value of your vehicle and your ability to make payments on the loan, rather than just your credit history. This can be a significant advantage for residents with less-than-perfect credit or those who have been turned down by traditional lenders.

While credit score is less of a concern, several factors can disqualify you from obtaining approval for a title loan. The most common reasons include:

• Insufficient Vehicle Value: Your car must have enough equity to secure the loan, because its title will be the collateral for the funding. If the vehicle has high mileage, or is not in working condition, its value might not meet the lender's minimum requirements.
• No Clear Title: You must possess a clear and lien-free title to your vehicle, and it must be in your name when you submit your application. If there's a lienholder (like a bank that financed your car), you won't be eligible for a title loan until that lien is satisfied.
• Proof of Income: Lenders need assurance that you can make payments on the loan. This typically involves demonstrating a stable source of income, whether it's from employment, benefits, or other verifiable sources.
• Active Bankruptcy: While your credit score isn't the main factor, active bankruptcy or an overwhelming amount of existing debt could still signal a high-risk borrower to some lenders.

In general terms, the amount you can borrow on a title loan is primarily determined by the market value of your vehicle and the lender's specific policies surrounding the loan-to-value ratio. Lenders typically offer a percentage of your car's wholesale value, often ranging from 25% to 50%, though this can vary. Factors that influence the loan amount include:^{1 5}

• Vehicle Make, Model, and Year: Newer, more popular models with higher resale values generally qualify for larger loan amounts.
• Vehicle Condition: A well-maintained vehicle in good working order will command a higher valuation than one with significant wear and tear or mechanical issues.
• Mileage: Lower mileage generally indicates a higher vehicle value.
• Lender's Policies: Each lender has its own internal policies that influence how much they are willing to lend.
• State Regulations: Some states have regulations that cap the maximum amount that can be borrowed on a title loan.

It's important to remember that while a title loan can provide quick access to funds, it's a secured loan, meaning your vehicle is at risk if you fail to repay the funding. Always borrow responsibly and ensure you have a clear plan for the repayment process.