Do car title loans work?

Will a car title loan work for me? I’m kind of strapped for cash, and my credit isn’t great. It would be great if I could get a title loan to help me out until I get paid, but I’ve heard that they’re just a scam to get your car.

Answer
A car title loan will certainly work in that it can get you quick cash. But while they aren’t scams, title loans are very high-risk.
Car title loans often have high APRs and short payoff periods. So your monthly rate will likely be enormous! Plus, your car is collateral—so if you can’t make your payments, they’ll repossess your car. That being said, you might be better off exploring other options.
If you’re just looking for a quick personal loan, credit unions will usually offer loans with lower interest rates and more flexible terms. Alternatively, you may qualify for more substantial loans if you have a cosigner with good credit.
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Liz Jenson
Answered on Nov 08, 2021
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