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How do title loans work in Colorado? | Yendo Credit Card



June 2, 2023

Title loans in Colorado

Are title loans legal in Colorado?

No, title loans are not legal in Colorado. These short-term, high-interest loans use your vehicle's title as collateral. Note payday loans - sometimes considered an alternative to title loans - are legal in Colorado and must not exceed an annual percentage rate of up to 36% unless it is a $500 six-month loan which can have an annual percentage rate of 91% under a different Colorado law. [1] [2]

How do title loans work?

1. Ownership and vehicle assessment: To qualify for a title loan, you must own your vehicle outright and possess a lien-free title. The value of your vehicle will determine the maximum amount you can borrow, which is typically a percentage of the vehicle's resale value.

2. Application process: Visit a title loan lender, either in-person or online, to apply for a loan. You'll need to provide personal information, proof of identity, proof of residence, proof of income, and details about your vehicle. You'll also need to present the original car title and, in some cases, a spare set of keys.

3. Loan approval: The lender will assess your application and vehicle to determine if you qualify for a loan and, if so, the loan amount. This process can be completed quickly, sometimes within a few hours or on the same day.

4. Loan agreement: If you and the lender agree to the loan terms, you'll sign a loan agreement that outlines the interest rate, fees, loan term, and the lender's right to repossess your vehicle if you fail to repay the loan on time.

5. Funds disbursement: Upon approval and signing the agreement, the lender will provide you with the loan funds. In most cases, you'll still be able to use your vehicle during the loan term as long as you continue making payments.

6. Repayment: You'll need to repay the loan within the agreed-upon loan term, typically 30 days but possibly longer, depending on the lender and the specific loan terms. Failure to repay the loan on time may result in the lender repossessing and selling your vehicle to cover the loan balance.

To reiterate, title loans are not legal in Colorado. If you’re considering an alternative, like payday loans, it’s important to consider they can be expensive and a short-term solution to your financial situation, so it’s worth considering other alternatives before resorting to this type of loan.

The Yendo Card - The Title Loan Alternative

Yendo is the first credit card that's backed by the value of your car, so you can use your car title to get a credit line of up to $10k. The card can provide access to credit for those who might not be able to qualify for other credit cards. It's a real credit card, powered by Mastercard, that provides credit limits from $450 - $10,000, depending on the value of your car. So, rather than re-applying for loans, for example, you can access funds an ongoing basis and, with responsible usage like on-time payments, build your credit too.

Features & benefits of the card

  • Credit limit - access up to $10k in credit
  • Only pay for what you spend - it's a credit card, so you only pay for what you spend, plus interest and fees. Or, if you pay off your balance each month, you only pay for what you spend.
  • App - the Yendo app lets you manage your account, wherever you are
  • Virtual card - access a portion of your credit limit prior to getting your physical card in the mail with the Yendo virtual card. Use your virtual card in addition to your physical card
  • Cash advances - ability to do cash advances on your card if you need to access money quickly
  • Access to revolving credit – you’ll have a revolving line of credit that opens up as you make payments
  • Credit reporting – all your account activity will be reported to the credit bureaus, giving you the perfect opportunity to build your credit

Additional information





Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.