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Car title loans are small-dollar, short-term loans that carry triple-digit interest rates designed to drive you deeper into debt and ultimately take away your vehicle.
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Tweet; Auto title loans are a high-cost way to borrow small amounts of money for a short period of time, using your paid-off car as collateral. Here's how it works:
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Auto Title Loans. A car title loan is short-term financing that requires you to give your vehicle title to a lender who then charges you a fee for borrowing the money.
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There are currently 16 states that explicitly allow title lending at triple-digit interest rates and four others* that allow title lending through a legislative loophole.
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Car title loans are easy to get, but they can also send consumers into a spiral of debt that ends in the loss of their vehicles. Beware of predatory practices.
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