why college students use title loans

5 Reasons College Students Are Using Title Loans More Than Ever

Each year, millions of young adults head off to college and experience their first real sense of freedom. Many of these students are away from home for the first time, without the safety net of parental supervision to help them make responsible decisions. This leads to all sorts of poor choices being made: deciding to party instead of study, spending more time socializing than in class, or invariably sleeping through that 8:00 am lecture. When these mistakes start to add up and take their toll, college can suddenly become a stressful and scary place.

It’s quite easy, and arguably sometimes even important, to make mistakes when you go to college. After all, the lessons learned from mistakes help make us into more experienced and responsible human beings in the long run. However, when these mistakes negatively affect your finances, there is a tendency to feel less appreciative for the lesson and more anxious about how to correct the situation and get back on track. For many college students in these situations, title loans have proven to be a very helpful resource.

Here are five reasons why more and more college students are using car title loans.

Title Loans Offer Fast Cash

The amount of cash an individual could be approved for will vary due to several factors, including the type of vehicle being used for the loan, as well as the individual’s ability to repay, but amounts up to $15,000 are available to handle nearly any kind of unexpected expense.

Keep and Drive the Vehicle While Repaying

Many individuals may worry that getting a title loan would mean giving up the keys to their car, but that is simply not the case. With today’s title loans, borrowers keep and drive their vehicles while making the payments.


Wisconsin car title loans


All Credit is Welcome

Many college students have not had a chance to establish enough credit history to qualify for traditional bank loans or credit cards, but approval for a title loan is not based on an individual’s credit score. In fact, most lenders do not report to or inquire with any credit reporting agencies.

The Approval Process is Fast

While a personal loan or mortgage approval can take weeks or even months to process, a qualified borrower could complete the title loan approval process in as little as 30 minutes. This makes them ideal for situations where cash is needed immediately.

They Could Help Improve a Low Credit Score

Even in college, it’s possible to end up in tremendously stressful financial situations. For instance, for a student trying to cover the expense of tuition on their own, there may be times when payments are due and there are no available funds in the bank. There are also other expenses to worry about, like gas, food, textbooks, and entertainment. Not only could title loans help with those expenses, but they could help improve an individual’s credit score.

How? In a situation where a student is falling behind on their bills and keep incurring late fees, their credit score could be taking a hit. On the other hand, if they were to get a title loan, they could pay off all of their overdue accounts at once, likely improving their credit score in the process. Another advantage is all their debt is consolidated into one payment, the likelihood of forgetting to pay on time is greatly decreased.

After all, having a good credit score is essential in this day and age, especially when applying for a vehicle loan or mortgage. According to CreditSesame, a good credit score ranges from 700-749 and bad credit is considered to be 550 and below. And CNN has reported that only about 20% of Americans have a credit score above that 700 mark, which is not-so-great news for the other 80% of the country. A title loan could possibly prevent a student from sliding out of the 20% percentile.

How to Get a Title Loan


online title loans Wisconsin


Here’s how to begin the simple approval process for a title loan: The first thing an individual has to do is fill out a simple online request form with their basic personal information. Shortly afterward, a local store associate will contact them to explain the process and answer any questions they have. Before driving to the company’s location, they will need to gather these required items:

  • State-issued photo I.D.
  • Lien-free title
  • Your vehicle for inspection
  • Proof of income

Once onsite, a store manager will inspect their vehicle while they fill out the simple paperwork for their loan. In as little as 30 minutes from arriving at a store location, they could be on their way with their vehicle and cash amounts up to $15,000.

The Option is Always There

Nobody ever thinks about the possibility of an unexpected expense or emergency cash situation, especially when they are young and focused on their education. But the fact is, thousands of young adults in college are hit with these situations on a daily basis. Not everyone needs the help a title loan could provide, but it should be comforting to know that the option is always available if needed.

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

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.