right age for auto title loan

How Old Do You Have To Be To Get An Auto Title Loan?

Borrowing money on your car's title via an auto title loan might be worth checking out if you need emergency cash. Here's everything you should know about the minimum age requirement to get a loan on a car title.

You'll have to be 18 to take out an auto title loan. You must also provide your ID proving your age, verify your identity, and meet a few other requirements.

There are several things to consider before getting an auto title loan, but it's always wise to consider your options as a younger person. Keep reading to learn more about auto title loans, the age limitation, and how you can apply today.

How Old Must You Be For A Title Loan?

If you want to get a title loan, you must be at least 18. Simply put, anyone under 18 is considered a minor in the eyes of the law. In context, anyone under 18 can't be held legally responsible for a contract they sign.

As such, borrowers under 18 have no legal obligation to repay what they would owe, making lending to minors implausible from an ethical and practical standpoint. The only exception to this is federal student loans, which allow students under 18 to sign legally binding contracts.

Can I Get a Loan If I'm 18?

Since you are an adult in the eyes of the law, any financial decision you make is yours to bear. That includes taking out loans.

Of course, just because you can take out a loan doesn't mean you should. Borrowing money is a short-term financial resource you might consider in situations where not paying something or refusing a service would be more costly or complex.

Overdue bills or expenses can hang over your head, causing you additional stress and more cost. In these circumstances, considering a title loan might be better than doing nothing.

If you can rely on your family, earn more money through a side hustle, or budget more effectively considers those alternatives before getting a loan.

wondering about age for auto title loans

Will Lenders Turn Down An 18-Year-Old Borrower?

Most likely, 18-year-olds must have a credit history of applying for most loans. Since a large portion of lending is done on credit history, the lender likely has no way to verify that the young applicant will repay the debt—unless they can make a sizeable down payment.

There are alternatives to these loan options secured by something other than your signature. Auto title loans, for example, rely on your paid-off, lien-free car title to be used as collateral.

You put up your car title with a title loan, and the lender places a lien against it. This lien ensures that you repay the loan as agreed in the terms and will be removed when the loan is completely paid off. Of course, you can still use your car as you would typically while there's a lien against it.

In this circumstance, you — even as a young borrower — are highly incentivized to pay off the loan because one of your assets is at stake. This layout minimizes risk for the lenders and can allow you, as a young borrower, to get a loan.

How To Apply With Delaware Title Loans, Inc.

Now that you know your options, you can responsibly use an auto title loan in dire circumstances. Firstly, you'll want to make sure you have these three necessary items:

  • Your driver's license or valid state-issued ID
  • Your car's lien-free title
  • Your car itself for a quick inspection

Got everything you need? Great! Here's how our auto title loan process works:

  1. Submit the online inquiry form to send your basic info to the closest storefront.
  2. Wait for an associate to call back to review the loan details. You'll also set up an appointment at a place you choose--whether at a convenient location or at a Delaware Title Loans, Inc. store near you.
  3. Bring the items listed above to your meeting, wait for the associate to review them, and check your VIN.
  4. If approved, you'll receive the urgent money that day or on the subsequent bank business day.

looking up auto title loan age

Fill Out Our Online Form Today!

Now that you know the age limit for getting a loan, you're well prepared to consider an auto title loan for when you might need it. Life emergencies can leave you reeling, especially when you're young and trying to establish yourself. If that happens, you might rely on Delaware Title Loans, Inc. to help you out of a rough spot with an auto title loan.

If that sounds like the right call for you, complete the online form to start the auto title loan process today!

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.