Are car title loans safe?

Are car title loans a safe option to make fast money? I need some quick cash to buy a new fridge, but I’m a little worried about taking out a title loan. I've heard the interest rates can be really high.

Answer
Unfortunately, you’re right to be concerned. Car title loans aren’t necessarily unsafe, but they can definitely be risky for a few different reasons:
  • Car title loans can have very high APRs, sometimes well over 100%.
  • They typically have relatively short repayment period, often between one and six months. That means your monthly payments will be high, even before you account for interest.
  • Title loans hold your car as collateral. If you can’t pay off the high monthly rate, your lender has the right to repossess your car.
If you’re looking for quick cash, consider your alternatives. Credit unions offer loans with lower interest and more flexible terms. Your credit card company may also have loans or credit advances for much better terms than you’d get on a title loan.
If you’re looking for ways to make money, start by saving on car insurance with Jerry. A licensed broker, the Jerry app helps you find and compare quotes from over 50 top providers for free. Users save an average of nearly $900 a year on car insurance with Jerry, and it only takes a minute to sign up!
Liz Jenson
Answered on Nov 08, 2021
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free