Today, those taking out car title loans for bad credit in Texas are straddled with skyhigh APRs 300 percent, inflexible loan terms, and the ever-present risk of losing your vehicle.

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Luckily, there are plenty of alternatives offered through reputable lending networks like LifeLoans and MarketLoans which feature a large pool of participating direct lenders offering up to $40,000 unsecured loans for bad credit. With favorable sub 35.99% APRs, longer repayment terms, and safe/secure online application, we can offer you much better options. Try our lenders below, register and get offers in 5 minutes, you won’t regret.

Best Car Title Loans Alternatives for Bad Credit Texas 2023

Before we move on, we wanted to show you one great video that will teach you all about bad credit loans:

Keep reading to learn more about the best alternative car title loans for bad credit in Texas, including five of our favorite lending networks, advantages/disadvantages of car title loans, top lending options by city, and a briefing on payday and auto title lending laws in one of our favorite states in the country. 

100Lenders

Rating: 4.9/5.0

Amount: $100 to $40,000

APR: Up to 35.99%

Min. Credit Score: 0

Approval: 5 Minutes

For one of the best alternative car title loan lending networks in the business, look no further than 100Lenders.

100Lenders is an online platform allowing you to receive multiple loan offers from legit direct lenders providing loans from $100 to $40,000 at up to 35.99% APR.s Along with flexible repayment terms, these bad credit loans offer a much better alternative to traditional payday, auto title, and pawn shops known for their predatory collection practices and sky-high 300% and 400% APRs.

Another reason why we like 100Lenders is its quick and easy online application. A helpful progress bar depicts every step, from entering your desired loan amount to the final depositing instructions. Its secure online form with 256-bit SSL technology can encrypt your data and keep your information safe.

How to Apply: Signing up with 100Lenders is a breeze. Visit the homepage, click the application button, and follow all on-screen instructions. Before proceeding, consider and agree to various disclaimers, including terms of service, privacy policy, arbitration notices, and advertiser disclosures. From there, it should take at most five minutes to receive multiple loan offers from legit direct bad credit loan companies for any amount you are looking for ($1,000, $2,000, $5,000 or even more).

Eligibility:

• At least 18 years old
• Legal residency (US citizenship or permanent resident)
• $1,000 in minimum monthly income
• Checking account to receive funds via electronic transfer
• Completed 100Lenders application

Highlights:

• Generous loan amounts reaching up to $40,000
• Competitive APRs up to 35.99%
• Quick and easy online application
• A vast network of reputable bad credit direct lenders
• Member of the Online Lenders Alliance (OLA)

Fees:

• No origination fees
• No prepayment penalties
• Late and insufficient funds fees depend on the lender

Pros:

• Highest borrowing limit of all ($40,000)
• APRs up to $35.99%
• Easy 2-minute online application
• Funds by the next business day
• Soft inquiry upon form submission
• Expansive network of legit bad credit loan companies

Cons:

• Higher minimum monthly income requirement than competitors
• No promises you will get a loan
• Not a direct lender
• Not licensed to operate in Connecticut, New Hampshire, Washington, and Vermont

Terms: 100Lenders offers a variety of loan products, including but not limited to bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for borrowers with credit scores in the 300 to 580 range. Loan amounts go from $100 to $40,000 with sub 35.99% APRs and flexible repayment terms from a few months up to several years.

Fees that may apply to your loan may include late payment fees, insufficient funds fees, origination/prepayment penalties, and rollover/extension fees. However, most direct lenders do not charge the last three fee types.

To provide a representative loan example, consider a 4-year, $28,000 loan with a 19% APR with no application fee. Based on these parameters, the estimated monthly payment would be $837.20 for a total repayment amount of $40,185.76 ($12,185.76 in interest charges).

Remember that the terms and rates may vary depending on the lender you are matched with through the platform. Be sure to thoroughly review all terms and conditions to understand the total cost of borrowing better.

LifeLoans

Rating: 4.8/5.0

Amount: $100 to $40,000

APR: Up to 35.99%

Min. Credit Score: 0

Approval: 5 Minutes

Avoid taking out a predatory auto title loan in Texas and go with an instant online cash advance from LifeLoans.

LifeLoans offers a nice mix, starting with high borrowing limits (up to $40,000), APRs of up to 35.99%, and repayment terms as high as 60 months, making it an excellent choice for everything from a past due utility bill to a large home purchase. An online application takes no more than five minutes to complete with instant approval and matching with several loan offers from legit bad credit loan companies looking to offer favorable rates and terms.

Another reason to use LifeLoans is with its transparency. All disclaimers are clearly listed, specifying its status as an intermediary with various advertiser disclosures that lets you know exactly how your information is used. All in all, we highly recommend LifeLoans for its lender diversity and user friendly terms.

How to Apply: LifeLoans' website tagline, " a fast and easy way to find a loan," is there for a reason. On the homepage, click the green "Start Now" or "Get Started" button, where you will be prompted to answer a series of questions regarding your loan application. Expect instant approval and presentation of multiple loan offers you can compare. Take at least 30 minutes to thoroughly review each direct lender, comparing rates/terms, website disclaimers, and third-party reviews from actual customers.

Eligibility:

• Must meet the minimum age of 18
• US citizenship or permanent residency
• Minimum monthly income of $800
• Valid checking or savings account
• Completed LifeLoans application

Highlights:

• Borrow up to $40,000
• Enjoy APRs up to 35.99%
• Well written website disclaimers 
• Quick and easy online application 
• Excellent source of emergency cash for bad credit, poor credit, and fair credit borrowers

Fees:

• No origination or prepayment penalties
• Late and insufficient funds fees apply

Pros:

• APRs up to 35.99% on loans up to $40,000
• Flexible repayment terms from a few months up to several years
• Easy to qualify for bad credit loans
• Excellent source of alternative auto title loans for bad credit in Texas
• 256-bit SSL encryption for data security

Cons:

• Not a direct lender
• Lacking in the customer service department 
• Lengthier application process than competitors
• Not all lenders available for your specific loan type in the amount
• Slower funding times than 0% interest cash advance apps like Earnin and Brigit

Terms: LifeLoans offers a variety of loan products, including but not limited to bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for borrowers with credit scores in the 300 to 580 range. Loan amounts go from $100 to $40,000 with sub 35.99% APRs and flexible repayment terms from a few months up to several years.

Fees that may apply to your loan may include late payment fees, insufficient funds fees, origination/prepayment penalties, and rollover/extension fees. However, most direct lenders do not charge the last three fee types.

To provide a representative loan example, consider a 4-year, $17,350 loan with a 22% APR with no application fee. Based on these parameters, the estimated monthly payment would be $546.63 for a total repayment amount of $26,238.26 ($8,888.26 in interest charges).

Remember that the terms and rates may vary depending on the lender you are matched with through the platform. Be sure to thoroughly review all terms and conditions to understand the total cost of borrowing better.

MarketLoans

Rating: 4.7/5.0

Amount: $100 to $40,000

APR: Up to 35.99%

Min. Credit Score: 0

Approval: 5 Minutes

MarketLoans is one of our favorite online marketplaces connecting borrowers with legit direct lenders.

All are ready to offer anywhere from $100 to $40,000 at sub 35.99% APRs, with much more favorable terms than traditional auto title loans for bad credit in Texas. These include high risk personal loans, instant online cash advances, and personal loans for bad credit.

One of the best things about MarketLoans is its easy eligibility criteria, requiring no more than a government-issued photo ID, proof of at least four weeks of employment, and a minimum monthly income of $1,000. With these guidelines, pensioners, gig workers (e.g., Doordash Delivery/Uber Drivers), and self-employed folks like freelance writers are all eligible.

On top of that, MarketLoans protect your information with 256-bit SSL encryption to keep your application data away from hackers. Along with Online Lenders Alliance (OLA) membership, it's a testament to MarketLoans's commitment to fair lending practices and consumer protections.

How to Apply: Like Lifeloans, Marketloans also shares the slogan, " a fast and easy way to find the loan." Its application is nearly identical to LifeLoans. Follow the homepage buttons and all on-screen prompts asking for your contact and depositing instructions before submitting your application. From there, you should be instantly matched with several competitive loan offers. Remember, completing Lifeloan’s application will only trigger a soft inquiry until you are led to the direct lender’s own application page (hard inquiry upon submission).

Eligibility:

• Applicants must be at least 18 years old
• US citizens or permanent residents are eligible
• Required checking or savings account
• Verifiable monthly employment income of $800 or more
• Completed MarketLoans application

Highlights:

• Loans from $100 to $40,000 with APRs up to 35.99%
• Flexible repayment terms
• Member of the Online Lenders Alliance (OLA)
• Available in almost all US states
• 256-bit SSL encrypted online application
• Excellent source of emergency cash for bad credit history/high-risk borrowers

Fees:

• No origination or prepayment fees
• Late and insufficient funds fees depend on the lender

Pros:

• Loans up to $40,000
• Fair APRs not exceeding 35.99%
• Carries the trusted Online Lenders Alliance (OLA) seal
• Available in 46 out of 50 states
• No origination or prepayment penalties

Cons:

• Not able to negotiate directly with lenders
• Limited control over loan terms
• Non-existent hardship/deferment options 
• Connecticut, New Hampshire, Washington, and Vermont residents are not eligible

Terms: MarketLoans offers a variety of loan products, including but not limited to bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for borrowers with credit scores in the 300 to 580 range. Loan amounts go from $100 to $40,000 with sub 35.99% APRs and flexible repayment terms from a few months up to several years.

Fees that may apply to your loan may include late payment fees, insufficient funds fees, origination/prepayment penalties, and rollover/extension fees. However, most direct lenders do not charge the last three fee types.

To provide a representative loan example, consider a 4-year, $18,500 loan with a 24% APR with no application fee. Based on these parameters, the estimated monthly payment would be $603.13 for a total repayment amount of $28,950.43 ($10,450.43 in interest charges).

Remember that the terms and rates may vary depending on the lender you are matched with through the platform. Be sure to thoroughly review all terms and conditions to understand the total cost of borrowing better.

MoneyMutual

Rating: 4.6/5.0

Amount: $200 to $5,000

APR: Up to 35.99%

Min. Credit Score: 0

Approval: 5 Minutes

MoneyMutual offers one of the most straightforward and convenient ways to apply for an alternative car title loan in Texas.

Rather than pay the 300% APRs offered by car title loans in Texas, opt for MoneyMutual with its extensive network of lenders wanting to offer anywhere from $200 to $5,000 at APRs up to 35.99%. On top of that, you will enjoy no origination/prepayment penalties and much longer repayment terms than the standard 2 to 4-week turnaround time offered by traditional payday, auto title, and pawnshop loans.

Other benefits to using MoneyMutual include a five-minute online application, Online Lenders Alliance (OLA) membership, and security protocols like 256-bit SSL encryption that keep your information safe. Remember that MoneyMutual is not a direct lender but a "middleman" connecting you with qualified bad credit lenders in exchange for a small fee or commission paid for by the direct lenders themselves. 

With more than 2 million customer service today, MoneyMutual is one of the more popular lending networks.

How to Apply: On the MoneyMutual homepage, you will see a large orange" Get Started" button. Click on it and start the application process, entering all information truthfully and accurately before hitting submit. Once submitted, expected approval and instant matching with several competitive alternative car title loans in Texas offers. Take at least an hour to research each direct lender thoroughly, visit its website, pour over disclaimers, and check out third-party reviews for peace of mind.

Eligibility:

• Minimum age of 18
• US citizen or permanent resident
• Active checking or savings account
• Monthly employment income of at least $800
• Completed MoneyMutual application

Highlights:

• Expansive loan range from $200 to $5,000
• Funds to your account in as little as 24 hours
• 256-bit SSL encryption for data security
• Excellent source of no credit check guaranteed approval loans

Fees:

• No origination fees or prepayment penalties
• Late and insufficient funds fees apply

Pros:

• Borrow up to $5,000
• APRs up to $35.99%
• Same day approval and next business day funding
• Transparent terms and conditions
• 256-bit SSL encryption and secure online platform
• No origination or prepayment penalties
• Lower interest rates than auto title loan places

Cons:

• $5,000 offers a lower maximum borrowing amount than competitors
• No cosigner, co borrower, or registration loans options
• No forbearance of hardship programs available
• Limited resources in the website focused on consumer education
• May receive unwanted third-party marketing calls, emails, and texts
• Accepting loan offers on weekends or holidays may delay processing times

Terms: MoneyMutual offers a variety of loan products, including but not limited to bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for borrowers with credit scores in the 300 to 580 range. Loan amounts go from $200 to $5,000 with sub 35.99% APRs and flexible repayment terms from a few months up to several years.

Fees that may apply to your loan may include late payment fees, insufficient funds fees, origination/prepayment penalties, and rollover/extension fees. However, most direct lenders do not charge the last three fee types.

To provide a representative loan example, consider a 1-year, $3,400 loan with a 25% APR with no application fee. Based on these parameters, the estimated monthly payment would be $323.15 for a total repayment amount of $3,877.80 ($477.80 in interest charges).

Remember that the terms and rates may vary depending on the lender you are matched with through the platform. Be sure to thoroughly review all terms and conditions to understand the total cost of borrowing better.

ZippyLoan

Rating: 4.5/5.0

Amount: $100 to $15,000

APR: Up to 35.99%

Min. Credit Score: 0

Approval: 5 Minutes

If you're looking for an excellent alternative to car title loans for bad credit in Texas, ZippyLoan is a solid bet.

For starters, ZippyLoan's extensive network of direct lenders can offer you anywhere from $100 to $15,000 through various loan options, such as bad credit personal loans, short-term loans, and instant online cash advances to meet your circumstances. On top of that, it also offers an easy and intuitive online application process that can be completed in less than five minutes.

As for funding, all you need to do is submit a loan request and receive multiple loan offers before enjoying same day approval and funding to your bank account within 24 hours. However, you need to request it on a non-holiday or weekend day.

Along with industry-standard security measures, we wholeheartedly recommend ZippyLoan as your next source of emergency cash for $1,000, $2,000, $5,000, $10,000 or even more. Forget typing" I need money now" into Google moving forward.

How to Apply: Applying for a loan using the ZippyLoan platform is a breeze. On the home page, find the option to get started and start the loan application process to be matched with compatible direct lenders. Expect to provide information such as your age, proof of income, state of residence, desired loan amount, and checking account information for funds disbursement. As long as you qualify, expect near guaranteed approval and competitive bad credit loan/alternative car title loan in Texas offers.

Eligibility:

• Age requirement: Must be at least 18 years old.
• Citizenship status: US citizen or permanent resident
• Account requirement: Valid checking or savings account.
• Income source: $800 in minimum monthly income
• Completed ZippyLoan application

Highlights:

• Loans up to $15,000
• APRs up to 35.99%
• Repayment terms up to 72 months
• Compatible with iOS and Android browsers
• Member of the Online Lenders Alliance (OLA)
• Funds into your bank account in as little as 24 hours
• Excellent source of alternative car title loans in Texas

Fees:

• No origination or prepayment penalties
• Late and insufficient funds fee apply

Pros:

• Repayment terms from six to 72 months
• Customizable payment frequency (1x or 2x monthly)
• Competitive loan offers at sub 35.99% APR up to $15,000
• Well written disclaimers on the website
• No prepayment penalties or origination fees

Cons:

• Not all direct lenders will award your desired loan amount
• May receive third-party marketing materials from bad credit loan/no credit check companies
• CLVerify, Teletrack, or Accurint may be used for independent verification
• Not available in New York, West Virginia, Oregon, or the District of Columbia

Terms: ZippyLoan offers a variety of loan products, including but not limited to bad credit installment loans, high-risk personal loans, instant online cash advances, and personal loans for borrowers with credit scores in the 300 to 580 range. Loan amounts go from $100 to $15,000 with sub 35.99% APRs and flexible repayment terms from a few months up to several years.

Fees that may apply to your loan may include late payment fees, insufficient funds fees, origination/prepayment penalties, and rollover/extension fees. However, most direct lenders do not charge the last three fee types.

To provide a representative loan example, consider a 2-year, $15,000 loan with a 34% APR with no application fee. Based on these parameters, the estimated monthly payment would be $869.89 for a total repayment amount of $20,877.25 ($5,877.25 in interest charges).

Remember that the terms and rates may vary depending on the lender you are matched with through the platform. Be sure to thoroughly review all terms and conditions to understand the total cost of borrowing better.

All About Car Title Loans in Texas

Also referred to as auto title loans, car title loans are short-term no credit check loans that use a vehicle's title as collateral.

In order to take out a car title loan, you must have the majority percentage of equity or outright own it. From there, a car title lender will assess your vehicle's value and offer a loan amount up to a percentage of that vehicle's value, which could be up to 50%.

One of car title loans in Texas’ top benefits is its quick access to funds. Unlike traditional banks and credit unions, you do not need a minimum credit score, extensive employment records, or deep dives into your background. Expect loose eligibility criteria requiring only your vehicle's title showing proof of ownership and a government-issued photo ID.

After you receive loan proceeds, the auto title lender will hold on to your vehicle's title until you pay off the entire loan in full within a short time frame, typically two to four weeks. There is also the option of rollover or extension fees, which offer you an additional two weeks to repay. These fees usually go up to $60.

On top of that, car title loans charge an average of 300% APR, which is outrageously high. For perspective, our recommended online networks offer alternative car title loans in Texas with APRs up to 35.99%. These unusually high APRs pit borrowers into a vicious cycle of debt if they do not know how to manage money properly. Not only do you lose your vehicle, but you lose your ability to get to work or anywhere you want to go.

Before taking out any auto title loan, we highly recommend exploring alternative options through our recommended lending networks. Rather than rely on 300% APRs, lending networks like MoneyMutual and 100Lenders already offer you favorable rates and terms, including sub 35.99% APRs, repayment terms of up to 60 months, and no origination or prepayment penalties on loan amounts starting from $100.

In short, car title loans are some of the more predatory types. However, there are more than enough fair loan opportunities through our recommended lending networks to fill the void. Continue reading to learn more about auto title and car title loans for bad credit in Texas, including all applicable laws, how they work, their pros/cons, and our favorite lenders in five of Texas's largest cities.

What Are Car Title Loan Laws in Texas?

Texas requirements for car title loans are severe. They protect consumers from getting caught in a debt trap with unfair interest rates, finance charges, and repayment terms. One of the best things you can do to protect yourself is to understand car title loan laws in Texas fully.

All auto title loan laws in Texas are governed by the Texas Finance Code, Chapter 392, which outlines restrictions about the maximum loan amounts, APRs, and repayment terms offered by car title loan companies in the state. 

Key provisions of Texas auto title loan laws include:

Suppose you feel you are the victim of a predatory auto loan in Texas. In that case, we highly recommend you file a complaint with the Office of Consumer Credit Commissioner (OCCC), which oversees these types of loans in the region.

Why Do We Recommend MoneyMutual, ZippyLoan, MarketLoans, 100Lenders, and LifeLoans?

The bottom line is that these are lenders for bad credit, that do NOT require collateral, like traditional car title loans. Their APRs are 5,99% to 35,99%, which make them times cheaper than the average auto title rates of 300%. And they work in Texas. People looking for car title loans, should at least try them. Apply now and see their offers.

When evaluating legit online marketplaces like MoneyMutual, VivaLoans, and 100Lenders, we also considered several criteria, including but not limited to security/privacy, eligibility requirements, diversity of offers, the application process, and transparency.

Let's take a deeper dive into how we evaluated each recommended lending network:

Security/Privacy. One of the top security-related signs to look out for is 256-bit SSL encryption and an indication of a secure connection using the ‘https’ protocol in the URL. 256-bit SSL encryption is necessary because it helps keep your sensitive information private by encrypting your application data. Furthermore, use of the https protocol indicates that there is a secure communication channel that cannot be eavesdropped on by hackers.

Eligibility Requirements. We only look for lending networks with relaxed eligibility requirements requiring no more than a government-issued photo ID proving legal age, a minimum monthly income of $800, and a valid bank account. If you have all these things, expect approval/guaranteed approval quickly.

Offer Diversity. We appreciate lending networks that offer all types of loans, including bad credit loans, no credit check loans, installment loans, instant online cash advances, and high risk personal loans. Many of these are for people with limited to no credit history who have issues qualifying for lower interest rate loans from direct lenders like banks and credit unions.

Application Process. Only lending networks with an easy and intuitive online application process met our criteria. They should take at most five minutes to complete, requiring a maximum of a few pages of information asking for personal details such as your employment information and deposit instructions.

Transparency. We highly respect lending networks that commit to transparency. All no credit check interest rates, fees, and repayment terms should be explicitly stated on all website disclaimers with representative loan examples and meaningful fine print like advertiser disclosures and states of operation. Providing all this information offers each lending network credibility, whether you have bad credit, poor credit, fair credit, or good credit.

All of the above criteria allowed us to effectively narrow down a large pool of 20+ options into five of the very best.

What Are Payday Loan Laws in Texas?

The Texas Finance Code is responsible for all payday loan regulations in the state. Specifically, it outlines maximums concerning APRs, repayment terms, and finance charges. According to the ordinance, Texas payday loans can have up to a 7-Day minimum term and a 180-day maximum term.

Unfortunately, it does not explicitly state maximum finance charges or interest rates, which has caused payday loans to rise significantly in the state. With repayment restrictions, all payday loans must be paid in a single installment, not multiple installments, although multiple payment payday loans are possible with some online alternatives.

Another essential thing to mention about Texas payday loan laws is that borrowers need at least a day between payday loans. One cannot take out a payday loan and take out a second payday loan from the same company the following day.

Lastly, all Texas payday lenders must adhere to the Fair Debt Collection Practices Act, which governs how lenders collect dues. For example, there can be no threatening language, late night phone calls, or other actions that can be perceived as threats.

Be sure to carefully familiarize yourself with all Texas payday loan laws before committing to any particular one. Whether you know Texas payday loan laws or not, it's never a good idea to visit your local cash advance place for a traditional payday loan with those sky high 400% APRs we have come to dislike.

How Car Title Loans in Texas Work

A car title loan in Texas is a secured loan that puts your vehicle up as collateral. You must provide the lender with the vehicle's title, which is held on until you repay the loan in full. Expect a loan of up to a percentage of your vehicle's value. For example, if your vehicle's value is $10,000, then a Texas payday lender can lend you up to 50% of its value which would be $5,000.

To take out a car title loan in Texas, you must complete an application that asks for various details, including your personal information and proof of vehicle ownership. You must also provide a government-issued photo ID, a home address, and proof of income.

The next step is for the car title lender to inspect your vehicle and create its pricing. Never will a car title lender offer you 100% of your vehicle's value. They may use Kelley Blue Book or a separate appraisal process to determine its value.

We highly recommend you refrain from ever taking out a car title loan in Texas. There is a high risk that you will default on the loan, forcing the car title lender to repossess your vehicle and sell it to recover lost profits. With 300% APRs, there are plenty of alternative borrowing options, including 0% interest cash advance apps, personal loans for bad credit, instant online cash advances, and high-risk personal loans.

Advantages and Disadvantages of Car Title Loans in Texas

Here are the advantages and disadvantages of car title loans in Texas:

Advantages

Quick Approval. Car title loans in Texas offer one of the lowest barriers to entry we've ever seen on loans. All you need to do is show proof of age by being 18 or older with an income, where less emphasis is placed on your credit score. This makes car title loans a preferred (but not recommended) option for individuals with limited to no credit history.

Next Business Day Funding. When you take out an alternative car title loan from a reputable direct lender from lending networks like Money Mutual and 100Lenders, most commit to disburse funds to your checking or savings account by the next business day. Although some exceptions apply, you must submit your loan request form by a daily 5:pm weekday deadline. Remember, lenders may decide to request additional information, extending approval time by a day or two at worst.

Vehicle Remains Yours. Although the car title lenders hold the title, you can continue to use your vehicle, going anywhere you'd like. This ensures that you can get to work on time with no compromise.

 Disadvantages

300% APRs. One of the worst things about car title loans in Texas is their outrageous APRs of up to 300%. This is much higher than 0% interest cash advance apps and traditional loans from banks and credit unions. It even blows past your average credit card cash advance variable APRs of 28%. If you roll over car title loans over several months, you can eventually have interest and finance charges exceed the principal balance, wreaking havoc on your monthly budget.

Short Repayment Terms. Unlike personal loans for bad credit from reputable online marketplaces like Money Mutual and ZippyLoan, car title loans in Texas come with concise repayment terms, anywhere from 30 days to a few months. If you pay outrageous fees, it will be harder to pay all of your other bills, potentially forcing you into a vicious cycle of debt.

Might Lose Vehicle. Many car title in Texas borrowers have had their vehicles repossessed due to defaulting on a loan. Remember, lenders reserve the right to seize and resell it to recover their lost profits (interest charges they would have otherwise earned). Outside of losing your vehicle, you have now limited your ability to get to work and other areas you need to be in every day, potentially costing you thousands of additional dollars trying to secure a new vehicle.

Are There Car Title Loans in Texas for Bad Credit?

Yes, car title loans are ideal for people with bad credit. Remember, traditional banks and credit unions rely more on a minimum required credit score. In contrast, car title lenders focus more on your income and employment record, with your vehicle used as collateral to take out the loan.

Thanks to your vehicle being used as collateral, expect no credit checks. All they care about is how much your car is worth. Remember that they have a proprietary method to assign a value to your vehicle based on their underwriting methodologies. Expect to be offered a loan of up to 50% of your vehicle's value at their discretion.

Although car title loans suit bad credit borrowers, we do not recommend typing " I need money now" into Google and pulling up questionable local cash advance places. There are better alternative options via reputable lending networks, 0% interest cash advance apps, and instant online cash advances.

As we follow loans, we recommend you review your car title loan terms and conditions, as you will find more reasons not to use them.

What Are Some Good Alternatives to Car Title Loans In Texas For Bad Credit?

If you're looking to move outside of car title loans in Texas, plenty of low interest and low fee alternatives are available. The three types that come to mind are personal loans from banks and credit unions, Buy Now/Pay Later (BNPL) services, and 0% interest cash advance apps like Earnin and Brigit.

Upstart

Upstart is a well-rounded online lender that offers loans from $1,000 to $50,000 at favorable 5.35% to 35.99% APRs on three or five-year repayment terms. However, it requires a minimum credit score of 580, representing the upper end of the bad credit score threshold. Consider it the more Innovative lenders, as it relies on an AI-based algorithm that determines creditworthiness based on factors outside of credit scores, such as employment record and incoming cash flow every month.

Greater Texas Credit Union

One of the easiest Texas credit unions for bad credit borrowers to take out personal loans is Greater Texas Credit Union, which offers up to $10,000 with interest rates as low as 9.99% APR and 1 to 60-month repayment terms. Plus, there are no origination or prepayment penalties with no collateral needed to qualify.

One of the Greater Texas Credit Unions' best benefits is its credit counseling program. This four-step program allows members to re-establish their credit by setting up repayment plans. All you need to do is provide your present financial situation and personal circumstances for a qualified credit counselor to build a program for you.

For more information on the Greater Texas Credit Union's credit counseling program, visit Get in Touch - Greater Texas Credit Union.

Buy Now/Pay Later (BNPL)

If you consider taking out a car title loan in Texas to pay for online purchases we highly recommend Buy Now, OPay Later services like Afterpay, Affirm, and Klarna instead. They allow you to split e-commerce purchases into equal, fixed installments over a six-week period with 0% interest and no fees. However, you should expect to pay a high APR or additional fees if you exceed this introductory range.

We like BNPL services for their flexibility and convenience. The three services above work with thousands of participating retailers like Amazon, Walmart, and Target, so a payment plan is always within easy reach.

0% Interest Cash Advance Apps

One of the best ways to avoid a car title loan in Texas is by downloading Earnin, Brigit, or Dave. These three recommended 0% interest cash advance apps offer up to $100 per day or $750 per pay period. All you have to do is repay the loan proceeds with your next paycheck.

However, it is essential to note that these operate as advances to cover paycheck apps with restrictions on borrowing amounts you may qualify for. Not all users are eligible for the maximum advance amount. For example, Brigit scores every borrower on a 40 to 100 scale, with those on the upper end eligible for higher advances.

How to Find the Best Car Title Loan Alternatives for Bad Credit in Texas

Fortunately, there's no shortage of opportunities for Texans with bad credit to qualify for alternatives to car title loans with much lower interest rates, more flexible repayment terms, and shorter fine print void of hidden fees and other predatory "got ya" clauses.

Here are our favorite suggestions on car title alternatives for bad credit in Texas:

Personal Loans for Bad Credit. One of the best alternatives to car title loans for bad credit in Texas is personal loans from reputable online marketplaces like VivaLoans and MarketLoans. They offer access to an extensive network of legit direct lenders offering high loan amounts (up to $40,000) at sub 35.99% APRs with flexible repayment terms from a few weeks up to five years.

On top of that, there is no need to worry about rollover or extension fees of up to $60 for the privilege of having an additional two weeks to repay. Most lenders do not offer it, operating on a fixed installment plan based on a set repayment term with no application fees or prepayment penalties.

0% Interest Cash Advance Apps. Bad credit borrowers in Texas can forgo auto title loans and go with popular 0% interest cash advance apps like Earnin and Brigit, which allows early access to your earned wages of up to $100 per day or $750 per pay period with no credit check. They offer excellent fee transparency, making money based on a voluntary tipping system (Earnin) or monthly membership model (Brigit).

Outside of advances, 0% interest cash advance apps offer several budgeting and financial tools to help you better manage your budgets, such as upcoming bill alerts, overdraft protection, and identity theft prevention. These are designed to improve your money management skills and reduce the risk of overdrawing and taking out car title loans in Texas.

These apps are a short-term lending solution to cover paycheck gaps. Our best recommendation is to maintain a healthy monthly budget and control your inflow and outflow.

The Largest Cities in Texas

Unquestionably Texas is one of the more charismatic states in the country. From the cosmopolitan vibe of Houston to San Antonio's historical backdrop, each of its five major cities has a rich story.

Houston. The fourth largest city in the United States, Houston is known for its world-class attractions, including the Museum of Fine Arts, Space Center Houston, and the Houston Museum of Natural Science. It's also an underrated nature attraction, with Hermann Park, the Houston Zoo, and Buffalo Bayou Park calling it home.

San Antonio. Arguably the number one most historical city in Texas, San Antonio is rich with landmarks such as the Alamo, a site of the legendary Battle of the Alamo. We're also big fans of the city's Riverwalk area, an eclectic maze of walkways full of thriving cafes, restaurants, and entertainment venues. We also appreciate the annual Fiesta of San Antonio and Market Square, which boasts a rich, authentic Tex-Mex influence.

Dallas. Unlike San Antonio, Dallas is ultra-modernized with an impressive cityscape, the iconic Reunion Tower, the national sculpture Center, and former President John F Kennedy's assassination site. Dallas' Allure comes from its thriving sporting tradition, with four professional sports teams calling it home, including the Dallas Cowboys, Dallas Mavericks, Texas Rangers, and the Dallas Stars.

Fort Worth. Affectionately known as the ‘City of Cowboys and Culture,’ Fort Worth is best known for its intriguing western heritage with historic sites like the Stockyards National Historic District with its impressive rodeo tradition along with Sundance Square, Downtown Fort Worth's most well-known entertainment district with no shortage of bars, theaters, and shops. We are also big fans of the 252-acre Trinity Park, the best place in the city to picnic, walk, bike, and hike to your heart's content.

El Paso. El Paso offers a strong Native American cultural base. Many historic sites commemorate these groups, such as the Mission Trail, Ysketa, Socorro, and the Chamizal National Memorial. Plus, it is very close to the town of Juarez, Mexico, which sits to the immediate south, taking no more than an hour to cross the border.

Are Auto Title Loan Laws Differences in Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, and Other Texas Areas?

Car title loan laws in Texas are the same in each city, as Houston, Dallas, Austin, Fort Worth, and El Paso drivers follow the same statutes. According to Texas ordinances, any loan amount offered by a car title lender cannot exceed the vehicle's fair market value. Plus, it assigns interest rates based on a tiered system where loans up to $2,000 charge a maximum of 240% APR versus $2,500 and $7,500 loans, which draw a max of 204% APRs.

Another important aspect of car title loan laws across all these cities is a minimum 30-day term but no maximum term. All terms are at the full discretion of the lender.

Lastly, laws must be explicitly clear with all of the loan terms. Every disclaimer must have a note on interest rates, fees, repayment terms, and all necessary terms of service, privacy policy, and advertiser disclosures clearly cited.

Top Picks for Lenders By City

Best Lenders in Houston

Upgrade. Upgrade is one of the more popular online lenders in Texas. Iit offers loans from $1,000 to $50,000 at APRs of 8.49% to 35.99%. However, there are a few more strict requirements for bad credit borrowers, including having a credit score of at least 560 and a debt-to-income ratio no greater than 75%. 

Outside of the fact that Upgrade charges loan origination fees of 1.85% to 9.99%, we appreciate it for its lower-than-average APRs and excellent customer service.

Upstart. Upstart offers are one of the more forgiving terms, starting with loans from $1,000 to $50,000 with APRs between 6.50% and 35.99%. There's also no minimum required credit score since its proprietary AI-based algorithm bases your creditworthiness on other factors such as your income and employment record.

Best Lenders in San Antonio

First Tech Federal Credit Union. First Tech Federal Credit Union offers excellent alternative car title loans in Texas. It offers personal loans from $500 to $50,000 with APRs as low as 7.99% and flexible repayment terms. Plus, it allows no first payments for up to 45 days, allowing you to get your finances a bit better first. Kudos for no origination, prepayment penalties, or required collateral, as it offers only unsecured loans.

Upgrade. Another excellent car title loan alternative for bad credit in Texas is Upgrade. Its participating direct lenders offer anywhere from $1,000 to $50,000 to 8.49% – 35.99% APRs with repayment terms of two to seven years. Our only knock is that it requires a higher-than-average credit score of at least 560 and charges origination fees anywhere from 1.85% to 9.99%.

However, $1,000 is a common borrowing amount for car title loans for bad credit in Texas, so you should only pay a little interest. 

Best Lenders in Dallas

Credit Union of Texas. The Credit Union of Texas offers one of the best alternative car title loans in Dallas through its popular "On The Spot" personal loan program, which offers up to $2,000 ($200 to $500 on a six-month term and $501 to $2,000 on a 12 months term) with no credit check. All you need to do is be 18 or older and be a credit union member for at least 90 days.

Along with instant loan decisions and excellent customer service, Credit Union of Texas is an excellent car title loan in Texas alternative.

Brigit. With over 4 million members and 300K+ ratings on the App Store and Google Play, Brigit is one of the more popular 0% interest cash advance apps out there. It offers cash advances of up to $250 with no credit check. All of this is provided for a monthly $9.99 membership fee.

However, its biggest strength is its suite of extra budgeting tools, including up to $1M in identity theft protection, a financial insights dashboard that breaks down your spending by category, and a separate section that allows you to search for personal loans and auto insurance quotes through the app.

Remember that Brigit is best used if you are a frequent user. It makes no sense to pay a monthly $9.99 membership fee if you only plan to take out one advance a month and not take advantage of the extra tools offered.

Best Lenders in Austin

Alliant Credit Union. Although Alliant Credit Union is not specific to Austin, it's one of the largest digital-only credit unions in the country, offering a wide selection of financial products. Its personal loan program offers anywhere from $1,000 to $100,000 with flexible terms between 12 and 60 months and no origination or prepayment penalties that allow you to save on interest. Feel free to pay it back a year in advance!

Plus, APRs are solid (10.99% APRs for 12-24 month terms and 12.99% APRs for 48-60 month terms).

One of the best things about Alliant Credit Union personal loans is that they offer same day approval and funding. Not even direct lenders from MoneyMutual or VivaLoans can offer that. You'll get funds with them at best by the next business day.

Our only knock is that you need a higher-than-average credit score in the 640 range and no in-person customer support. However, it makes up for it with impressive online customer service.

UFCU. UFCU is one of the top-rated Austin credit unions with more than $35,000 members and $7.5 billion in total assets managed. One of its best perks is its personal loan program which offers excellent APRs for bad credit borrowers in the 17.99% range with repayment terms of up to 60 months. Boost your credit score a bit and enjoy "fair" APRs of 16.99% and "average" rates of 15.90%.

Another benefit to applying for a UFCU personal loan is that you can back your loan using your savings or certificate account to secure lower interest rates. Plus, a 3% dividend does not hurt!

We also appreciate its robust Member Services program. During the pandemic, they offered several community resources to help prevent loan default. You may reach out to them here through its Contact Us page. 

Best Lenders in Fort Worth

Neighborhood Credit Union. With more than 50,000 members, Neighborhood Credit Union is one of the more popular credit unions in the Fort Worth area. Its impressive personal loan program offers high dollar loans with rates as low as 7.99% up to 17.99% APR. The online application process takes less than 10 minutes, with same day approval and funding in one to three business days.

There's also the option of smaller quick cash loans with a fixed 28% APR, the perfect substitute for car title loans. All you need is to become a credit union member with a minimum $25 deposit. 

Best Lenders in El Paso

Navy Federal Credit Union. Navy Federal Credit Union offers an excellent personal loan program. Loans from $250 to $50,000 and enjoy 7.49-18.00% APRs with terms up to 36 months and 14.79-18.00% APRs on loans from 37 to 60 months. On larger dollar loans of 61 to 84 months. They also offer other financial products like certificate secured loans and saving secured loans, which are secured using your own Navy Federal savings account, which also earns dividends (share rate + 2% or 3% APRs, depending on the loan term).

Our only knock is its stricter eligibility requirements where you must have a credit score of at least 690 with a healthy sub 43% debt-to-income ratio. You must also be a member and have a regular employment income or government benefits like SSI.

One Source Federal Credit Union. One of El Paso’s leading credit unions, One Source Federal Credit Union offers unsecured personal loans of up to $20,000 on terms up to 72 months on APRs of 11.89% - 17.99%. 

Do Car Title Loan Alternatives for Bad Credit Require Collateral?

In short, car title loans in Texas require collateral with your vehicle, awarding loan amounts up to a percentage of your vehicle's value (as high as 50%).

In turn, alternatives like 0% interest cash advance apps, online personal loans for bad credit, Buy Now, Pay Later (BNPL services), and even pay alternative loans from eligible credit unions do not require collateral. Unlike car title loans in Texas, our alternatives are based on eligibility based on your income, debt-to-income ratio, and ability to repay.

Another important distinction between car title loans in Texas and alternatives for bad credit is borrowing amounts. Car title loans in Texas offer anywhere from a few hundred to several thousand dollars, whereas lending networks offer a wider range. For example, 0% interest cash advance apps like Earnin, Brigit, and Dave award up to $100 per day or $750 per pay, period strictly to cover paycheck gaps. In turn, lending networks like VivaLoans and MarketLoans offer up to $15,000 and $40,000, respectively.

With BNPL services, like Affirm, Afterpay, and Klarna, loans are taken out at participating e-commerce store checkouts pages converting purchases into 0% interest equal, fixed installments with the first payment due at checkout.

In short, we recommend exploring the above alternatives with 300% APR card title loans in Texas only to be used as a last resort.

Are Car Title Loans No Credit Check with Instant Approval?

Car title loans typically do not need credit checks, thanks to a vehicle's title being used as collateral. In short, the value of the car is what secures the loan.

As for instant approval, it depends on the lender and their underwriting policies. Other factors may include application readiness and the need for additional supporting documentation. Plus, vehicle appraisals take more than a day, with any loan amount based on a percentage of the vehicle’s value. Again, if you default on a car title loan, you can expect the lender to repossess your vehicle and sell it to recover losses. 

OK. What Loans Require Credit Checks Then?

Examples of loans requiring credit checks include higher dollar personal loans of up to $100,000, mortgages, auto loans, student loans (federal and private), business loans, and credit cards. Minimum required credit scores are great for borrowers' ability to repay a loan and other factors such as income, debt-to-income ratio, and employment record.

Battle of the Subprime Loan Types

As you research the best car title loans for bad credit in Texas, you may come across comparatively named options such as auto title, registration, and payday loans.

And so not confuse them with car title loans, let's explain the similarities and differences:

Auto Title Loans Vs. Registration Loans

With auto title and registration loans in Texas, there are fundamental similarities and differences. Both options allow you to use your vehicle as collateral, but loan terms (e.g., amounts, repayment period, and required supporting documentation) differ.

For starters, auto title loans in Texas require that you own a lien-free title in your name. Upon taking out a loan, the car title holds the vehicle's title until you repay the loan in full. In turn, registration loans do not require that you own the car. Rather than place a hold on your vehicle, they place a lien on your vehicle's registration.

Secondly, loan amounts between auto title and registration loans in Texas are not the same. Auto title lenders issue loans based on a percentage of your vehicle's value, generally up to 50%. In turn, registration loans are based on a percentage of a bad credit borrower's income, debt-to-income ratio, and employment record. As a result, registration loan amounts are generally smaller than car title loans.

Thirdly auto title and registration loans in Texas differ in repayment terms. Auto title loans are generally paid between 30 days to several months, whereas registration loans are shorter (two to four weeks).

Lastly, auto title loans and registration loans in Texas differ regarding the risk of vehicle repossession. If you fail to repay a car title loan, your vehicle will be possessed and sold to lenders to recover loan proceeds. With registration loans, telling it to pay puts you at risk for illegal activities, but your vehicle will never be in danger of being repossessed.

Be sure to carefully evaluate all terms with car title and registration loans before committing to anyone.

Auto Title Loans Vs. Payday Loans in Texas

Like auto title and registration loans there are many differences between auto titles and payday loans.

Auto title loans are secured loans that put your vehicle up as collateral. Payday loans are unsecured, where any default payment will lead to legal action and escalation to collections, not repossession of an asset.

Outside of secured versus unsecured differences, auto title, and payday loans are remarkably similar in that they charge outrageous APRs of 300% and 400%. Both are shorter-term loans typically repaid with the borrower's next paycheck, based on a percentage of your income.

In short, we highly advise against taking out auto title and payday loans. If you type " I need money now" into Google, expect to see many local cash advance stores or online opportunities charging predatory rates with often questionable marketing practices e.g. “guaranteed” rates and requests for upfront payments. Fortunately, there are plenty of car title loan alternatives for bad credit in Texas from reputable online marketplaces like MoneyMutual and VivaLoans to fill the void.

Do Car Title Loans In Texas Require Proof of Income?

Yes, all car title lenders in Texas require proof of income through pay stubs or electronic timesheets. Other forms of proof include tax returns and bank statements. Sometimes, lenders will go an extra step and require that you provide evidence of retirement benefits, pensioner, disability, or self-employment income.

Remember, loan amounts issued with car title loans are based on a percentage of your vehicle's value, generally up to 50%. If you put a $15,000 car on the line, expect maximum loan amounts to be in the $7,000 range. However, most car title loan borrowing amounts are for much less.

Instead of going with a car title loan in Texas, we highly recommend exploring alternatives via legit online marketplaces like VivaLoans and 100Lenders. All offer an excellent source of emergency cash for $200, $500, $1,000, $2,000, $5,000 or even more with a quick and easy online application offering same day approval/near guaranteed approval and funding to your bank account as early as the next business day.

Are Car Title Loans with Guaranteed Approval?

With auto title loans in Texas, there's no such thing as guaranteed approval. Even if they are designed for borrowers with limited credit history, every lender has its qualification criteria to assess the borrower's eligibility, such as the vehicle's market value and ownership status. With payday loans, expect your income and debt-to-income ratio to be considered as well.

If you encounter any car title lender in Texas that guarantees loan approval without looking into your creditworthiness, we recommend avoiding them together. One of the surefire signs of a predatory car title loan lender in Texas is a complete lack of policy with no evidence of licensing and accreditation or specified disclaimers on websites.

As with all car title loans in Texas, we highly recommend carefully reviewing your loan agreement and placing a magnifying glass over interest rates, fees, and repayment terms before signing any loan documentation. 

Frequently Asked Questions

Can I get title loans without proof of income near me?

In most cases, yes. Remember, car title loans base borrowed amounts on your vehicle’s value and lien status, not on your income or employment record. That's why you should expect car title loans with no income verification.

Talk to me about companies that pay off title loans in Texas.

Also known as auto title loan refinancing companies, companies that pay off your existing title loan offer you a new loan with better improved terms. They pay off your original loan, provide a new loan, and streamline the repayment process. Think of it as debt consolidation for auto title loans.

How much can I borrow with a car title loan in Texas for bad credit?

The amount you can borrow with car title loans in Texas for bad credit in Texas depends on your vehicle's value. Each lender has its appraisal requirements and calculates value differently. Expect to be able to borrow a percentage of the vehicle's appraised value which can be as little as $100 upwards of thousands of dollars.

Can I refinance a car title loan for bad credit?

It is rare for anyone to be able to refinance a car title loan for bad credit. However, each lender has its own policy, so we highly recommend you refer to each for exact terms. Just be sure to carefully consider all fees and finance charges before applying.

Are there alternatives to car title loans for bad credit in Texas?

Yes, there are plenty of alternatives to car title loans for bad credit in Texas. Suppose you want to take out loans of several thousand dollars. In that case, other options include: 

• Combining multiple 0% interest cash advance apps.
• Taking out a payday alternative loan (PAL) from a credit union
• BNPL at participating e-commerce retailer
• Asking a trusted family member for a loan

How quickly can I get approved for a car title loan in Texas with bad credit?

How quickly you got approved for bad credit car title loans in Texas depends on the lender’s requirements. Some can conduct an appraisal in as little as two business days with same day funding and no expediting fee.

What happens if I default on a car title loan for bad credit?

Unfortunately, there are serious consequences if you default on car title loans in Texas. If you fail to pay, the lender has the right to repossess your vehicle to recover loan proceeds. We recommend carefully reviewing all terms and conditions before putting your signature anywhere.

Can I get an auto title loan if I have an existing lien on my vehicle?

Unfortunately, no. You must have no liens on your vehicle if you wish to use it as collateral on a car title loan in Texas. 

Are auto title loans a good idea?

Traditional auto title loans in Texas with 300% APRs are never a good idea. With a good percentage of car title borrowers having their vehicles repossessed due to non-payment, we would not risk it. Instead, viable alternatives like unsecured 0% interest cash advance apps, payday alternative loans, and instant online cash advances exist to fill the void, offering friendlier rates and terms without breaking the bank. 

What interest rates can I expect for an auto title loan? 

Expect a minimum of 300% APRs on all auto title loans. As for what it looks like, consider the example of a 2-week, 300% APR $300 auto title loan with a $25 processing fee. Total borrowing costs comes out to $359.58 based on $2.47 daily interest, where interest per day is calculated using the formula: (300% / 365) * $300 ( annualized formula), followed by multiplying the interest per day times 14 days (days in the repayment period), coming out to $34.58. $34.58 plus the $25 processing fee equals $359.58. 

No wonder we encourage Texans to avoid auto title loans at all costs!

Sources

What is Car Title Loan – by Investopedia

What is Car Title Loan – by Consumer

Best Bad Credit Loans – by NerdWallet

Best Bad Credit Loans – by Bankrate

Best 5 Instant Cash Advance Loans for Bad Credit No Credit Check – by TimesUnion

Best Car Title Loan Alternatives for Bad Credit – by ElitePersonalFinance 

Conclusion

Now that you know everything there is to know about car title loans in Texas, you will never need to search for the phrase " pawn shop near me" or "Texas car title and payday loan services" into Google again. Our recommended lending networks have a legit roster of no credit check/bad credit alternative auto title loan companies ready to extend favorable rates and terms to all proud Texans.

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