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Are car title loans worth it?

Is it worth it to get a car title loan? I want to take out a title loan to buy a new laptop, but I’m worried I might lose my car.

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Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Great question! Car title loans can be helpful if you need money fast, but they’re not always worth it. The high interest rates and short repayment periods mean they pose a high risk to borrowers.
Car title loans are known for having high APRs—sometimes reaching as much as 200-300%! Typical repayment periods also range from one to six months—so you’ll need to make large payments each month to pay them back. Plus, **your car could be repossessed if you can’t make the payments on time.
Before you take out a car title loan, consider these alternatives:
  • Get a loan through a credit union.
  • Use a credit card to purchase the laptop.
  • Ask your employer about an advance.
  • Try to get a pawnshop loan using another valuable item that you own as collateral.
In the meantime, you can start saving for a laptop by finding a better car insurance premium with the
Jerry
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