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Title Loans in Vermont: A Complete Guide

If you need money fast and happen to have any sort of vehicle in the garage, then you can consider Vermont car title loans.

In this article, we’ll talk more about what they are and why you should consider applying for them.

What are Title Loans?

These types of loans are known by many names, such as car title loans or auto title loans.

Essentially, American title loans give you quick cash in exchange for collateral: any motor vehicle you own and are willing to risk.

As with other secured loans, the lender will have the right to repossess your vehicle if you don’t repay your balance. The lender will own your car if you don’t pay back the loan amount (and fees).

Title loans can be classified as emergency loans since you can get approved and receive the money in as fast as two days! Some even report getting the cash about an hour after they were approved.

Some of the reasons you may want to consider a title loan include needing to pay for:

  • Medical expenses
  • Utility expenses
  • Urgent bill payment
  • Maintenance and repairs
  • Taxes owed

Are Title Loans Legal in Vermont (VT)?

American title loans are illegal in Vermont (VT). However, that doesn’t mean you can’t apply for them.

The catch is that shop front title loans within the State are illegal. There are certainly no laws restricting people from going to the neighboring states of Virginia and Delaware to apply for the loan.

If this is your option, agencies within the State can refer you to the nearest lender outside of Vermont. You will simply need to cross state lines to apply for this loan.

Another thing of note is that there are no laws against online title loans.

If you apply for your loan online, the customer service agents will arrange for you to get your money at the nearest loan site outside Vermont.

How Do Vermont Title Loans Work?

American title loans in Vermont (VT) work the same way as every other loan does — except you’re putting your vehicle on the line.

You apply for the loan and wait for a representative to contact you on whether they accept your application or not.

Regarding title loans, the most important check they need to make is an inspection of your vehicle.

This is because they want to appraise your vehicle’s value, and based on that, they will be able to give you the maximum amount you can borrow for.

You should know that loan amounts only go up to about 25% to 50% of your vehicle’s value.

Vermont Title Loan Requirements

The basic requirements to qualify for Vermont auto title loans include:

  • Government-issued ID: This will prove that you’re at least 18 years old and live in Vermont (VT).
  • Proof of residency in Vermont (VT): Aside from your ID, bills of utility expenses and other documents where your address is seen are counted.
  • Active bank account: This should have been opened several months before your title loan application.
  • Proof of income: Some lenders require you to be in the same company (or self-employed) for the past six months. But some accept social revenues from the government as a source of income.
  • Copies of important vehicle documents: These include car registration and insurance documents. These are only to be used in the worst-case scenario. These ensure that if you don’t repay the loan amount, the lender already has access to your vehicle. Insurance payments are another factor lenders check to see if you can repay the loan.
  • Pictures of your car - This is to help lenders decide how much they’re willing to let you borrow.

Lenders may also ask for optional requirements, such as:

  • Latest payment receipts: Lenders can take these as proof of your ability to repay the loan.
  • Extra contacts: Lenders can ask for additional contacts (usually two people) if they’re still in doubt. If the lender can’t reach you, they’ll contact these people to find you. They may also be questioned by the lender regarding your ability to repay a loan or your current financial situation.

Vermont Title Loan Application Process

Now that you’ve prepared your requirements, below is a step-by-step process when applying for Vermont title loans:

Step 1: Look for a Licensed Lender

Great lenders handle the best title loans.

Your first standard should be looking for a licensed lender. This assures you that the company you’re dealing with is legal and safe. A federal license means that the agency follows the country’s rules. 

Meanwhile, a local license means the lender is allowed to operate in that area. It also means that they follow the laws of that geographic location and pay any taxes owed to the State.

You should be able to find these licenses on the company’s website.

Once you’re sure your options have licenses, you should also compare:

  • Feedback from customers
  • Loan terms
  • Interest rates
  • Terms of repayment
  • Other costs
  • Whether they run a credit check or not

Legal lenders should have friendly customer service agents to help potential clients with questions or clarifications.

Step 2: Apply Online

Even though we mentioned that you could talk to direct lenders, the online factor makes applying for American title loans in Vermont (VT) even more convenient.

Simply answer an online form, which you can finish within minutes. Some bits of information you can expect to provide are:

  • Your full name
  • Your zip code
  • Your monthly income
  • The quality of your car
  • The manufacturer of your car

After you submit the form, you immediately get a free pre-approved loan quote from the company.

Step 3: Submit the Necessary Documents

Wait for a loan officer to contact you regarding your application. 

If approved, you can pass the necessary documents online or through the nearest title loans place. This improves their ability to verify that you are a real person looking to make real deals.

Step 4: Discuss Loan Terms

A representative will walk you through the loan and payment plans you can avail of.

If you have any questions or clarifications, bring them up with the lender. Legal lenders should have friendly customer service to help you out.

Carefully read the contract they present to you. Comb over the details, and do not hesitate to clarify the specifics.

Check important terms such as:

  • Interest rate
  • Payment deadline
  • Duration
  • Maturity date

Legal language can be tricky for ordinary people. As such, don’t be afraid to ask for some time to concentrate on it. You can even seek legal counsel.

How you fare in your repayment depends on the loan terms discussed in the contract. Make sure you understand and agree with all the details written in the contract before you sign it.

You also have the right to have your copy of the contract. Online loans make this easier since you immediately get a copy in your email after signing.

Step 5: Claim the Money

Once you’ve signed that contract, you can expect the money by the next business day. If you’re lucky, you can usually get it on the same day.

You can pick up your cash in a store or get it through a direct deposit in your bank.

Step 6: Repay the Title Loan Amount

Possibly the least fun part of a loan plan: you’ll now need to repay that loan amount.

Unfortunately, you won’t be paying just the amount. Aside from that, you’ll also need to pay:

  • Interest rates
  • Annual percentage rates
  • Service and handling fees

Missing your payments means putting your vehicle at risk of repossession. You can ask for an extension, though this will result in paying more interest.

Pros of Title Loans in Vermont (VT)

Why should you consider getting title loans in Vermont? Well, we have some great reasons below:

Simple Application Process

You can get online instant cash when you apply for title loans in Vermont.

You don’t need to appear in front of direct lenders when applying. Plus, answering the online application form takes a few minutes. You can usually get instant approval too.

Once you’ve signed the contract, you can get your money in as fast as the same day. If not, it will surely be with you on the next business day.

Secured Loan

A title loan is a secured loan.

This type of loan is protected by collateral. This means that when you apply for a secured loan, the lender checks your assets (in this case, your vehicle) and puts a lien on them.

A lien is a security interest put on an asset that says the lender can claim it if you don’t pay back the loan amount.

That sounds scary. But because you have collateral backing the loan, you can get a higher loan amount and (ideally) lower interest rate.

This is in contrast to unsecured loans, where lenders can give a higher rate of interest and a lower loan amount as a precaution in case you can’t pay them.

Good Credit Isn’t Required

Most lenders don’t run a credit check.

This makes Vermont title loans a great option for those who don’t have a credit history. Even if a lender does run a credit check, having bad credit history doesn’t matter.

What matters with car title loans is that you have a vehicle to put up as collateral.

Not requiring good credit also makes the loan application process faster. This is what allows you to get instant approval.

Cons of Title Loans in Vermont (VT)

Title loans surely look like an attractive option. But below are some things to be wary of:


You pay for the convenience of online title loans. But car title loans can still get very expensive compared to other loans. 

That’s because interest tends to be high, and you only get, at most, half of your vehicle’s value.

Aside from that, you might also encounter additional fees and other finance charges. These may be small, such as for origination fees and official documents, but they can add up to a considerable amount.

Additionally, Vermont affordable title loans are only for those with good credit scores.

Yes, we mentioned bad credit doesn’t matter. However, lenders that run a credit check can still base your interest on your credit score.

Even if you get approved with bad credit, you’ll likely be dealing with low loan amounts and higher interests.

Risk of Repossession

With secured loans, you risk losing your asset (in this case, the vehicle) if you don’t repay the borrowed money.

Don’t even start to think that you can outsmart lenders. They offer title loans because they know the value they can get from reselling your car if you default.

Aside from putting a lien on the vehicle, they can ask for a set of keys and important vehicle documents. They can even put GPS trackers on the vehicle.

All these will ensure that they will get your vehicle to recoup their losses if you don’t pay.

Short Payment Time

The risk of repossession is higher with car title loans because they typically have short repayment periods.

As a short-term loan, you have only 15 to 30 days to pay off the loan. This doesn’t give you much time to find the money you need to repay the debt.

This is why discussing repayment terms before signing the contract is important so you can try to suggest more reasonable terms.

Prone to Predatory Lending

Predatory lending is the unfair practice, the dark side of lending. It involves deceptive or abusive loan terms.

Predatory lenders aim to milk you for your money or have ownership of your vehicle at the end of the loan pay period.

For one, if you’re dealing with direct lenders rather than online, they may prevent you from having a copy of your contract.

You are within your rights to demand a copy. It’s a red flag if they won’t let you take one home for closer evaluation or promise to mail you a copy later on.

Don’t be pressured into immediately signing the contract or going home without having a copy of the signed contract.

High-Interest Rates

Aside from this, be wary of a higher interest rate, or a rate that’s too low to be true. In the case of the latter, check for other fees they may charge that will result in you needing to shell out more than you should.

High fees increase the chances of them legally owning your vehicle in the end.

Alternatively, predatory lenders may also resort to very unpleasant, even illegal collection techniques. They might get violent and threaten you and your family. 

Another thing they can do is ask for the address and contact information of your place of employment.

When you miss your payment, they’ll contact the employer to recover your payment there through employees’ pay.

If you think you’re dealing with a predatory lender, immediately opt out since there’s no hope of scoring affordable title loans with them.

How Do I Get Out of a Title Loan?

If you’ve gotten yourself into America title loans in Vermont, here are a few ways to get out of it:

  • Pay Off Your Loan: The ideal and most straightforward way to get out of Vermont title loans is to simply pay off the loan. Once you get enough money to repay, immediately follow payoff instructions. Remember that the longer you put off a loan, the more expensive it’ll be.
  • Talk to Your Lender: Lenders offering the best title loans might try to work with you, especially if your expenses are really going downhill. One option is to be honest about how much you can pay. The lender might be willing to get something rather than nothing at all — even if your vehicle is at stake. They might offer options as well, such as lowering the interest rate or stretching your payment period.
  • Refinance: This means you’re getting rid of one kind of loan by taking up a different loan. Of course, this is not a permanent solution, but it might get you to more stable ground. Fixed-rate loans from banks and credit unions are usually less expensive than car title loans. If you have bad credit, other cash loans online are good options. The important thing here is that you’re getting back full rights to your vehicle, and you won’t be rolling the title loan monthly.
  • Default: Perhaps the least ideal option (but still an option) is just to stop paying. Of course, this means the lender will repossess your vehicle. Unfortunately, this also means the default will be reported to a debt collection agency. This agency will then still collect your unpaid funds from you. This can mean deducting payments directly from your wages or bank account. You can voluntarily surrender your vehicle, which may improve your situation a bit. Overall, even though you’re not worrying about monthly payments, defaulting means you’re giving up quite a lot — from your vehicle to the money you still owe.

Car Title Loan Alternatives

Another way to get out of America title loans is to avoid them in the first place.

Below are title loan alternatives that can help with fixing financial issues:

Negotiating with Creditors

Taking on more loans to pay loans will just put you in a debt spiral. Consider talking to your creditors about any options you may have.

They may offer to lower your rates or change repayment terms. It might even be possible to reduce or temporarily postpone payments in the meantime.

Personal Loans

You can apply for these cash loans through banks and credit unions. Personal loans have lower fixed rates and longer repayment periods.

It might be surprising to know that even the most expensive bank loan is cheaper than title loans.

However, personal loans from financial institutions can be challenging if you have a bad credit history. If that’s a problem, you can turn to cash loans online.

Peer-to-Peer Loans

You get peer-to-peer loans from investors rather than banks. You can apply for this loan online.

The good news is that you have a higher chance of getting approved here than traditional bank loans. Rates are also lower.

However, there’s the risk of borrowing more than you need. That’s because minimum loan amounts in peer-to-peer lending are higher than minimum loan amounts in title loans.

Credit Cards

Using a credit card is like taking on another short-term loan. This is because you need to pay credit card bills every 30 days.

You should also remember that you can only spend up to a certain credit limit — and chances are, you’re using your card to pay for other things too.

Despite that, credit card interest is lower than title loan interests.

Frequently Asked Questions

There’s a lot to learn about Vermont title loans. So, we’ll answer additional questions below to help you understand them.

How Long Will It Take for a Title Loan Application to Be Approved?

Once you have all the required documents, a good chunk of the loan application process is spent on lenders checking your documents.

If everything goes well, you can get approved in about an hour. If the lender still wants to confirm a few things (like the quality of your vehicle), then it might take a few days.

Regardless of how long it takes to get approval, you can get your money within the day if you’re approved.

How Much Do Vermont Title Loans Cost?

As previously mentioned, Vermont car title loans are expensive. Rates of interest can be as high as 30% monthly or 360% yearly.

One trick some lenders do is they tell you the monthly payments rather than the annual interest. This can make it more attractive to borrowers. 

But if you add up those monthly payments, you’ll find that they may be higher than your expected annual payments.

You should also watch out for additional fees that the lenders may charge. Even though they look like small amounts individually, they can add up.

You might also need to pay an application fee if you opt for direct lenders rather than online title loans.

Are There Hidden Fees?

No, there shouldn’t be hidden fees. You should be wary if you come across a company of too-easy title loans with too-good-to-be-true low fees.

Check for other fees this company may charge. You should also try to research any reviews by previous customers.

If anything makes you doubt if you should choose that company, it’s best to look for something else.

Legally-operating lenders aren’t allowed to charge unreasonable hidden payments. Doing so will put them at high risk of losing their license and permanently stopping operations.

But if you don’t make your payments on time, these lenders are allowed to add fees on top of what you already owe them.

How Much Can I Borrow With a Title Loan?

Lenders will usually let you borrow $100 to $10,000 — but they can also decide to give you more. This depends on factors like the quality of your car and how good your credit score is.

However, the Federal Trade Commission says the average amount stands between $100 and $5,500.

You should always remember that they’ll only give you up to half the value of your vehicle.

Can I Get Several Vermont Car Title Loans?

You technically can. However, you cannot get two loans for one vehicle.

This means you can only get multiple simultaneous title loans if you apply for the same number of vehicles.

Remember that you’re not restricted to cars. You can also put up trucks or motorcycles as collateral.

It’s also possible for you to be approved for the loan even if you don’t have a clear title. That means the vehicle has no lien or levy from other people (like creditors) that can question legal ownership.

But this doesn’t apply to all lenders. Even if you have found a company that allows this, these are more expensive for the following reasons:

  • The vehicle must have a high value
  • Can have three times higher APR rate than usual
  • Payment might be required within 15 days

Will My Car Need to Be Inspected?

Not necessarily.

If you’re dealing with direct lenders, you might need to get your vehicle inspected.

When it comes to online loans, you might get approved without needing to show your vehicle. In this case, you can finish the application process within a day.

Sometimes, online lenders might still choose to inspect your vehicle. After all, they’re doing so to estimate the vehicle's value. They’ll also use that value to decide how much they’re willing to let you borrow.

The application process might take a few days if this is the case.

Do Car Title Loan Companies Conduct Credit Checks?

They typically don’t run a credit check. All that matters is you have a vehicle to put up as collateral.

For those that do, having bad credit doesn’t mean you can’t be approved. It means that you’re probably getting high interest and low loan rates.

Why Was My Application Denied?

Though a title loan in Vermont is easy to get, it’s still possible to not be qualified for it.

Some reasons for being declined include:

  • You’re not the vehicle’s legal owner, yet you’re setting it up as collateral.
  • Your monthly income is less than $1,000.
  • Your vehicle is already set up as collateral in another loan.
  • You’re bankrupt.
  • Your vehicle doesn’t match its description and market value.
  • Your vehicle isn’t in good condition.
  • The bank account you applied with is not your own.

You can try again after a few days of your application being denied.

What Happens if I Miss A Payment?

Nothing happens the first time you miss a payment, as you get a 30-day grace period whether you opt for installment or a one-time repayment.

For one-time payments, the lender will get repossession of your vehicle after that grace period. For installments, one missed payment won’t matter.

However, two or three missed payments will result in the repossession of your vehicle. The company will contact you two days before the repossession to tell you to prepare your car.

They can legally charge you for holding the vehicle if you don’t comply. Still, lenders tend to be more lenient if it’s your first repossession.

As long as you’re responsive and don’t hide the vehicle, they are willing to give you back the vehicle.

This only happens after you’ve paid off the amount you owe them. The amount will be higher than expected since it will also come with other fees, like repossession and storage fees.

Will Car Title Loans Affect My Credit Score?

Taking on any type of loan will pull your credit score down slightly. But you can quickly recover by making payments on time.

However, there are times when a title loan will drastically drag your credit score. One example is when you negotiate with your lender to pay less than your agreed amount.

Another example is defaulting. When you default, you lose your car, your credit score takes a deep dive, and you might still owe the lender money.

The resulting bad credit will stay with you for years. The record of repossession or voluntary surrender of your vehicle will show up on your credit report up to seven years after your first missed payment.

If you’ve finished paying your debt, that debt will be updated to show as “paid” on your files. 

Doing so won’t immediately improve your credit. However, it can help your credit score bounce back slightly quicker.

Can I Still Use the Vehicle I Set Up as Collateral?

Yes, you can still use the vehicle you set up as collateral.

The lender cares more about its official documents (like deeds of ownership) than the vehicle itself. However, they may opt to mark it with a GPS tracker to ensure you’re not going to run off.

It will depend on your lender and the agreement you make with them.


Applying for Vermont affordable title loans is such an easy process, especially if you’re applying online. You can get approved and receive the money the same day you apply.

However, you must be mindful. After all, title loans can be more expensive than other loans.

Nevertheless, they’re a good option if you need some quick cash. Just make sure to pay on time so you can still keep your vehicle.

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