All of us experience shortage in money so man have ended putting up business loans, car loans and more.
A car title loan, or simply title loan, is a loan where the borrower provides their car title as collateral for a loan.
Title loans are not cheap. They tend to have higher interest rates than banks, credit cards, and in some cases, payday loans. As always, there’s a high price for quick cash, and it’s usually to the borrower’s detriment.
When people take out such loans they may see the amount due on the loan, but if they calculated the APR it can be over 100%! Some states, like Florida and Illinois, have placed restrictions on the interest rates and fees charged by these companies. The end result is rates that are still quite high – often around 30% – but more reasonable than in other places.
What do you think about title loans? Do they serve a useful need, or are they predatory loans? Have you ever used one? If so, what was your experience like? Check out