Alternative to Title Loans
A title loan is a short-term loan that you can get if you use your vehicle title as collateral. The due date for complete repayment is typically 30 days. These loans have higher interest rates that make it difficult and sometimes impossible for people to repay the loan. If you cannot pay back your loan, you may enter into another agreement with the lender and get another 30 days. This is called rolling over the loan. Remember that rolling over will incur an additional monthly fee.
Just like a payday loan, a title loan can be appealing as it does not require a credit check. Though a title loan is one of the easiest ways to get access to cash immediately, the higher fees it comes with may trap you in a never-ending cycle of debt. There is even a risk of losing your vehicle if you do not repay the money you owe to the lender. The lender may eventually sell your vehicle to recoup his money.