Car Title Loan Laws

If you are interested in getting a loan against the value of your car, you need only look for a loan agent in your state that provides this service. That's important to realize, of course, but most important of all is the need to recognize the laws in place in your particular state - before you take out a car title loan.

Which laws apply?

No two states are exactly the same on this, hence our recommendation to find out which laws apply where you live. A client in California could find very different laws in place when compared to someone living in Virginia.

Does your state offer title loans?

The answer here could be yes or no, depending on where you live. Some states have forbidden them, whereas others allow them with no problems. However, even where they are allowed, there are big differences in terms of the regulations that apply to this market. Some have very strict laws surrounding them and the degree of interest the lender can charge, while other states have 'looser' terms in place.

How does the loan work?

Essentially, the lender will take the title of the vehicle you own as collateral, in case you should default on the loan they have given you. To this end, it makes sense to find out what the terms and condition of the loan are. How long do you get to pay off the loan, and what happens if you missed a payment for any reason?

Finding out about the laws in force in your state will help enormously when it comes to making an educated decision regarding the idea of getting a car title loan.