Should you Apply for a Car Title Loan?

I know how it feels to get backed into a corner because you’ve got bad credit and need some urgent cash. I’ve been there it and done it. In fact, I’ve had 3 car title loans before so I think I’m qualified to talk on this.

In the heat of the moment when you’re desperate, it’s easy for you to act on your impulses and just apply for one. Unfortunately, those impulses may lead you down a miserable path that is hard to come out of. I definitely would advise against applying for a car title loan.


Car title loans are stressful. It’s constantly in the back of your mind because you can lose your car if you don’t pay your bill on time. Unlike a regular car loan, car title loan lenders are not as lenient or forgiving. If you default on your loan (30+ days late), the lender has the right to repossess your car and they often do. Luckily, the latest I’ve ever been on a payment was 2 weeks. When you’re late with your payment, they’ll keep calling you to remind you. This also adds some stress to your life.

Very costly

In addition to the stress, car title loans usually come with ridiculously high APRs (Annual Percentage Rate). I’m sure you know about high APRs if you’ve ever taken out a payday loan.


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