What are car title loans and how do they work?

Car or truck title loans are short term high interest loans. The borrower borrows off the equity in their vehicle. The loan is based off of the value of the car and the borrowers monthly income. Every state has different laws pertaining to truck title loans. Some states have a minimum that they can loan on a vehicle. Make sure to check with the state that you are in to see if your vehicles qualifies.

Title loans are short term high interest loans. They cater to those with poor credit history, hence the high interest. Title loans are secured loans. Your vehicle is the collateral in the loan. If you take out a title loan and you don’t make your payments your vehicle can get repossessed so be careful. Don’t do it unless you feel confident in paying the loan back.

People take out auto title loans for unexpected occurrences. Bail money, funeral expenses, home repairs, surgeries, etc.

Your vehicle must be free and clear of any liens in order to qualify for a title loan. You must own your vehicle outright.