Because these loans are based on the vehicle’s value rather than your credit score, they are an appealing option if you have bad credit or no credit and need money quickly. Much like payday loans, car title loans are designed as a fast way to get cash for bills or emergencies. It’s usually capped at 25% to 50% of the vehicle's value. Depending on state regulations, the dollar amount of these loans usually ranges between $100 and $10,000.

Loan terms vary by state, though, and can range from as few as 15 days to over a year. At the end of the term, a single balloon payment of interest and principal is due. In states where they are allowed, these loans typically have a term of 30 days. Some states don’t allow these loans at all. What Is a Car Title Loan?Ī car title loan is a short-term secured loan that uses the title to a vehicle (either a car, truck, or motorcycle) as collateral. The following ideas may help you do that. If you currently have a title loan, the best thing to do is to get out of it quickly. They also increase your risk of having your car repossessed. Though these loans may seem like an ideal solution to an emergency need for cash, their high interest charges and extremely short loan terms make them difficult to manage. These loans are based on your car’s value, not a credit check, so you don’t have to go through a traditional loan approval process to get one. If You Can’t Adjust Your Terms or Refinance.Ĭar title loans are a quick and easy way to get cash in a hurry by using your vehicle’s title as collateral.If You Can’t Pay Off the Loan Right Now.Getting Out of an Auto Title Loan Without Losing Your Car.

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