Title Loans Laws by State

There is now an alternative for getting title loans without much of a hassle.  At one point, the burdens get pretty hard for you and you need an outlet to cave in, you can opt for your car as collateral. Also known as car or auto pawn, the title loan market had being existing since the 90s and the popularity in United States isn’t likely to decrease. Companies such as Title Max and other companies have made a lifetime serving satisfied customers because unlike the traditional method of credit scores, if your vehicle is in a good state, you have a high chance of cashing out big. The title loans are short term plans and the system is quite simple. The lender in your state is in charge of the hard copy documents of the vehicle (collateral) and in turn, provides the borrower with a lien placed on the car. If the borrower fails to meet the charge, the car is sold out to recover the title loans. The interest rates are a bit on the high side but this is where geography works an advantage for you. If you’re brave enough, here’s a comprehensive guide to walking you through it.


Various states have different laws on acquiring a title loan. The process starts with an application to either an online or a store for a title loan. The needed documents include an issued ID (driver’s license, residency proof), car registration and hard copies of the documents. The lien is dependent on the state. The application can be burdensome and frustrating. Some states place regulations on title loans that aren’t friendly to these loans. Title loans might be popular and an easy solution but their demands are quite detrimental, especially to low income earners with low credit scores. This situation leaves behind a pool of debtors that never emerge from their debts and hence, most states are against it. Below is a list of states that doesn’t support title loans.


  • Indiana
  • Iowa
  • Kentucky
  • Alaska
  • Arkansas 
  • Connecticut
  • Florida
  • Maryland
  • Massachusetts 
  • Michigan 
  • Nevada
  • New Hampshire
  • New Jersey 
  • New Mexico
  • New York 
  • North Carolina 
  • North Dakota 
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • Vermont
  • Washington
  • West Virginia
  • Wyoming 



  • Delaware
  • Georgia
  • Louisiana 
  • Minnesota 
  • Missouri
  • Montana 
  • Ohio
  • South Carolina
  • South Dakota
  • Tennesse
  • Texas
  • Utah
  • Virginia
  • Wisconsin 



Various states provide criteria on the title loans as some set a standard for the interest rates of the loans covered. Some states have restriction measures such as Ohio with a percentage interest of 28%, but one can get around these laws if they can get hold of a lienholder and can sail through the loopholes. Regulation exists within various jurisdictions in various states and for some states, the measures are quite flexible. Utah, for instance, takes title loans on boats and motors loans. Some states refuse cash advances while cash advances in some states are settled over installment payment instead of a one-time cash payment. There are standards used to checkmate these excesses.

Max and Min Title Loan Amount places a limit on how much loan can be gotten per individual. Generally, most minimum title loans are from $100 but the maximum differs from state to state. 

The term refers to the period of the cash assistance and how long it is carried on. 

The right to cure is a legislative right that protects the consumer in their state as it provides an extension to pay back the title loan. 

Below is a summation of title loans in some states.

Texas 10% No limit 180 days
Illinois 25-36% Doesn’t exceed $4,000 4-12 months
Missouri  25% No limit 30 days 
Utah  30-100% (depending on the credit score) $100-$50,000 6-36 months 
California 30% $2500-$50,000 31 days 
Alabama  25% $100-$10,000 30 days
Louisiana 25-50% No limit 2 months 


States such as California, Louisiana and South Carolina are harder to access for title loans than Texas, Utah and Missouri. Prospectively, most states have provisions for the borrower to get back their vehicles and their companies that make these processes a lot easier, especially in states of restrictions. Companies such as Title Max and Montana Capital Cars are suitable for acting as the middle man in processing title loans. These companies cut across the bureaucracy attached to getting the cars and get you hassled out of financial difficulties. You should find suitable interest rates on title loans that work in your favor to avoid debt.