how title loans work in Louisiana

4 Little-Known Facts About How Title Loans Work

Title loans get a lot of press — but not always for the right reasons. Here, we aim to shed some light on how title loans work and tell you some lesser-known facts about them. We'll even give you a peek at our process.

Before we begin, let's ensure we all know about this type of borrowing.

What Are Title Loans?

Title loans are short-term financial aids that require collateral. In this case, your collateral must be a title to your car, truck, or van. They were designed for emergencies, despite there being no legal restrictions on their usage.

We recommend using cash title loans in the following crises:

  • To pay medical bills
  • To fund urgent travel
  • To repair your home or secondary vehicle
  • To fund overdue bills that could otherwise incur a late fee
  • Any other emergency that would get worse if less unaccounted for

But all this is only the basics. Let's take a look at our four little-known facts about how title loans work.

Our Top 4 Facts About How Title Loans Work

1. You Get To Keep Your Car

Yes, you do get to keep your car while you repay the auto title loan. We place a lien on your title instead of confiscating your vehicle for the duration of the loan term.

2. You Must Own Your Car

We can't offer you a title loan if you don't own your truck, car, or van. You must be the full owner of the vehicle and ensure it has zero liens against it. Furthermore, the title must be in your name. If it isn't, head to the DMV and request to have it transferred into your name. Once the transfer has finished, you can start the process to acquire a title loan.

3. The Value Of Your Car Depends On Multiple Factors

When looking at how title loans work, the biggest thing you need to know is how we value your car. After all, that's the main factor that affects the amount you can borrow. The factors that affect the value of your vehicle are as follows:

  • Make and Model — Luxury automobiles are, of course, worth more than your average car. If you have a Range Rover, Cadillac, BMW, Lexus, Audi, or similar, you can probably receive the higher auto title loan amount.
  • Mileage — Have a look at your odometer before obtaining a title loan. The number dramatically affects your car's value. Higher mileage indicates more wear and tear. If you've ever bought a used car, you'll notice that those with higher mileage are sold for a lower price. The same goes for when you get a title loan.
  • Age — As manufacturers release newer models, the previous versions decrease in value. Generally, it's because the new ones have all the fancy mod-cons! Shockingly, vehicles tend to lose 60% of their value during the first five years of their life!
  • Condition — Looking after your car helps maintain its value. If you aren't rotating the tires, changing the oil, or taking your car in for standard maintenance, the mechanical condition will decrease. Cosmetically, dents, dings, stains, and scratches impact the vehicle's value. Even though it might seem small and inconsequential, it can drastically lower the value.

how title loans work

4. Developed With Accessibility In Mind

The final little-known fact about how title loans work is that they're made with accessibility in mind. As long as you're of legal age and own your vehicle, you have chances to be approved.

How Title Loans Work: Our Process

Every title loan lender is different. So, even though you know our top four factors about how title loans work, we have not divulged how you can actually acquire one. Luckily, the six steps below do just that:

  1. Start the process by calling your closest Cash Cow location or filling the quick inquiry form in. The form sends your information straight to your local storefront, so our representatives can call you back.
  2. Make sure you pick up the phone when our associate gives you a call. Ask them anything you wish. They will also tell you about the process and explain the documents needed.
  3. Then, head to your closest Cash Cow storefront with your driver's license (any state-issued photo ID works), your vehicle, and the lien-free title to your vehicle.
  4. A loan associate will examine your vehicle and review your documents to figure out whether you qualify.
  5. Once your loan amount is determined, our loan associate will guide you through some simple paperwork.
  6. Finally, you get your money (up to $1,400) and leave with your vehicle either on the same or next day!

meeting with a title loan representative

Get Title Loans Today

You never need to search "how title loans work" ever again! Instead, enjoy your newfound knowledge and get emergency funding whenever necessary. We're only a phone call or form away, so, call us at 1-800-514-2274 or submit an inquiry for online title loans on our website!


Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.