Around this business there are many doubts that open the way for many users to question important issues about car title loans. Among many of these elements we can find the costs, the requirements, how to apply for these services and how we can give an added value to our vehicle and get the best economic benefit to its legal documents, making sure to give this process a trust-based influence.


You can get a title loan with a car on the internet or in a store. Car title loans work like this:

Step 1: You must show the provider the following documents:

  • Your loan application
  • Your cart.
  • The title of your car.
  • Your ID card with a photo.

Some providers also require that you give them a copy of your car keys or that you purchase a road service plan.

Step 2: If the lender approves your loan, he will give you the money and keep the title of your car for the time determined in the terms you must’ve been reed before.

Step 3: When the repayment date of the loan arrives – usually in 30 days – you pay the lender the amount of money you borrowed – plus a monthly fee.


Usually, in general basis, the providers charge a monthly fee. This charge can be very high sometimes it can reach up to 25% of the loan amount. For example:

  • You want a loan of $ 1,000 for 30 days
  • The monthly charge is 25% $ 1,000 x .25 = $ 250
  • After 30 days you owe $ 1,250

This costs and prices can change depending on the car title loan establishment that provides these services. Some can have a different objective in the way to complete its monthly charges, having the economical state of the industry as a really important factor.


Most loans have an annual percentage rate. The annual percentage rate is also called APR. The APR tells you how much it costs to borrow money for a year. The APR of a car title loan can be very high. When you obtain a loan with the title of a car, the lender must tell you what the APR is and the cost of the loan expressed in dollars.

What is an APR? The APR is based on:

  • The amount of money you borrow.
  • The finance charge or the monthly interest rate.
  • The amount you pay for the charges.
  • The period of time of the loan.

For Example:

You need a loan of $ 500. You have plans to repay the money in one year.·         You compare the costs of taking a loan for that amount of money:o   The bank or credit union gives loans with an APR of 7.5%.§  You will pay $ 21 of interest for the $ 500 loan.o   A credit card has an APR of 20%.§  You will pay $ 56 of interest for the $ 500 loan.o   A loan with title to a car has an APR of 300%.§  You will pay $ 1,111 of interest for the $ 500 loan.