Are car title loans legal in Iowa?

I need some quick cash to buy presents for Christmas. I’m thinking about getting a car title loan, but I don’t know if they’re legal in Iowa. Can I get a car title loan in Iowa?

Answer
Car title loans are legal in Iowa, so you shouldn’t have a problem getting one from a lender. However, you should note that the interest you pay is going to be extraordinarily high, as the maximum APR for car title loans in Iowa is 21%.
In Iowa, the minimum amount you can borrow is $100 with a maximum of $500. However, current legislative bills are being discussed in the Iowa Congress, aiming to either eliminate car title loans or drastically curb the amount of interest lenders can charge.
Instead of getting a car title loan, you should consider alternatives, including:
  • Doing a cash-out refinance of your car
  • Borrowing money from friends or family
  • Getting a new credit card with a 0% or low introductory rate
  • Getting a personal loan
All of these will provide you with a lower rate than a car title loan, provided you have the credit and income to qualify.
If you’re searching for ways to save more cash, review your current car insurance policy and search multiple quotes with the Jerry app. As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
Eric Schad
Answered on Dec 02, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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