Reviewed by Shannon Martin, Licensed Insurance Agent.
Your coworker is correct! You can get a loan using your car title. A title loan is a loan that uses your car title as collateral. To get a loan using your car title, you need to be the sole owner.
Since a title loan has significantly high-interest rates and short terms, it’s easy to slide deeper into debt. Consider a title loan a last resort as you risk losing your car should you default. Some other options to try first are:
A personal loan with a cosigner
PAL (Payday alternative loan)
Talk with your lenders for repayment options
Working on a budget and cutting costs can also help avoid getting a title loan. An easy way to save on your car insurance is by downloading the
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