The short answer: yes. Using your car as collateral is the entire idea behind a car title loan. You pledge your vehicle’s title as security, borrow against the equity in the car, and keep driving it the whole time you repay.
How It Works
When you use your car as collateral, the lender holds your title — not the car itself — until the loan is repaid. Because there is collateral behind the loan, approval is based on your vehicle’s value and your income rather than your credit score. This is sometimes called auto equity lending, and it is how Waco drivers turn a paid-off vehicle into fast cash.
What You Keep, What You Pledge
- You keep: your car, your keys, and your daily routine — you drive normally.
- You pledge: the title, which is released back to you once the balance is settled.
What You Need
To use your vehicle as collateral, you generally need a clear, lien-free title in your name, a valid ID, and proof of income. The vehicle must be in running condition for the appraisal. See the full requirements, learn how to borrow against your vehicle, or explore car title loans in Waco.