Unlike payday loans which are unsecured, loans against your car title are secured by using your vehicle as collateral. How Do Car Title Loans Work?Ĭar title loans are a type of loan that lets you borrow money against the value of your car.
However, repayment policies – and the penalties for not doing so on time – are nearly identical to single-payment loans.Įven though “car” is in the name, car title loans may also be available for motorcycles, boats, recreational vehicles (RVs), and all-terrain vehicles (ATVs). Installment loans: These car title loans can be paid back with interest over three to six monthly payments, depending on the lender.If you don’t repay the balance by your due date, it will roll over to the next month and accrue additional interest. Single-payment loans: Single-payment title loans are short-term loans that borrowers have between 15 and 30 days to repay in one lump sum.There are two different categories of car title loans: However, some car lenders will allow you to take out a loan when your car is nearly paid off. Also known as a title pawn, you borrow up to a specific amount or percentage of your vehicle’s value in exchange for the car title.Īuto title loans are typically only given to those who have paid off their vehicle in its entirety. What Is a Car Title Loan?Ī car title loan is a short-term secured loan where the amount you borrow depends on the value of your car. To help customers make the best financing decisions, our research team has also searched the industry to identify the best auto loan rates and providers. This article will explain what car title loans are and how they work before weighing their benefits and drawbacks. While car title loans may seem appealing, they can be extremely risky if you don’t have a solid grip on your finances. If your bank account isn’t looking so great and you have bad credit, you may have considered a car title loan as a quick way to get extra cash. Your rate may vary based on credit score, credit history, and loan term.Īffiliate disclosure: Automoblog and its partners may be compensated when you purchase the products below. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.*All APR figures last updated on – please check partner sites for latest details. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. Car Title Loan lenders are usually licensed by the State in which you reside.
Rejections for loans are not disclosed to our firm and you may want to contact the lender directly. Residents of some states may not be eligible for a loan. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. This service is not available in all states, and the states serviced by this Web Site may change from time to time and without notice.Ĭar Title Loans are expensive and you may have other ways to get funding that is less expensive. In some circumstances faxing may be required. Not all lenders can provide loan amounts you may see on this web site because loan amounts by me limited by state law or the lender itself may limit the loan amount on your vehicle and your ability to repay the loan. We are not an agent, representative or broker of any lender we do not charge you for any service or product. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Please make sure to look into lenders policies, guidelines, restrictions, contracts, and ask as many questions as you can to ensure you understand what your receiving. Some statements on this website may not be correct, depending on which lender you are paired with. What we WILL do is submit the information you provide to a lender. Since we do not lend money directly, we cannot offer you a solicitation for a loan.
The company who lends you money, if any, is the one to do that. We do not broker loans to lenders and we do not short term cash loans or credit decisions. Read full-disclaimer below.ĭISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and do not offer you a solicitation for a loan. Please check with the lender to have these questions answered upon agreement to loan if you choose to take one.īy submitting your information on our website, you are only submitting a request to be matched with a lender. *Minimum and maxium loan amounts vary by state legislation & regulations, your ability to repay the loan, your vehicle equity, credit score, and more.
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