What Is a Car Title Loan?

Posted: Sunday, February 11th, 2018

If you’re strapped for cash, you might be thinking about applying for a car title loan. Keep this information in mind before you sign the dotted line:

  • Car title loans are not allowed in 25 states, so it might not be an option where you live.
  • At a monthly interest rate of 25 percent per month, a car title loan should only be used as a short term option.
  • If you’re dead set on applying for a car title loan, make sure you’re getting it from a trustworthy source. Some unscrupulous lenders may try to switch the loan for another type.
  • If you don’t pay back the loan, your lender can repossess your vehicle and sell it.

Turn to Green Light Auto Credit for Financing Help

If you need to improve your credit, consider applying for a low-interest auto loan at Green Light Auto Credit. We know customers with bad credit deserve a second chance, and you can apply for financing online before you visit us. Contact us today to learn more about car title loans vs. auto equity loans!