Quick answer
Car title loans use your vehicle as collateral. CFPB research found the typical title loan was about $700 with an APR of about 300% for single-payment loans, and one in five single-payment borrowers had their vehicle seized. Alternatives include credit union PALs, installment loans, payment plans with creditors and local assistance.
A title loan can put cash in your hand quickly. The price is high, and the collateral is often how you get to work.
What CFPB research found
From the CFPB's 2016 research on auto title loans:
| Finding | Figure |
|---|---|
| Typical loan amount | About $700 |
| Typical APR, single-payment loan | About 300% |
| Typical APR, installment title loan | About 259% |
| Single-payment loans renewed on the due date | More than 4 in 5 |
| Borrowers repaying with one payment and not reborrowing | About 12% |
| Single-payment borrowers whose vehicle was seized | 1 in 5 |
Lower-cost alternatives
| Alternative | Why it is better |
|---|---|
| Credit union PAL | APR capped at 28%, no rollovers |
| Unsecured installment loan | No car at risk; 5.99% to 35.99% APR on our network |
| Payment plan with the company you owe | Often free |
| Local assistance (211) | Free help with rent, utilities and food |
| Employer advance | Often free |
Already have a title loan?
- Ask the lender about a payoff amount and any extended repayment options.
- Compare a lower-cost installment loan to pay it off.
- Do not renew just to buy time. Each renewal adds cost while the full balance remains.
See also pawn shop loans and alternatives to payday loans.
If you need more time than one paycheck, compare installment loans, which spread the cost over months with APRs on our network from 5.99% to 35.99%. Check eligibility there or call (800) 236-7761.
Payday, cash advance and title products are high-cost short-term credit. They are intended for short-term needs only and are not a long-term solution. This page does not match you for payday loans. Rates and examples are illustrations; a lender's written disclosure shows your actual terms, and approval is never guaranteed.
Frequently asked questions about title loan alternatives: keep your car and pay less
What is a car title loan?
A high-cost loan where you hand over your vehicle title as collateral. If you do not repay, the lender can take the car.
How often do title loan borrowers lose their cars?
CFPB research published in 2016 found one in five single-payment auto title loan borrowers had their vehicle seized or repossessed.
What is the best alternative to a title loan?
A credit union loan, including a payday alternative loan, or an unsecured installment loan with a payment you can afford. Asking the creditor for more time is free.
Can I refinance a title loan?
You may be able to replace it with a lower-cost installment loan. Compare the APR and total cost before you switch.
Sources
- CFPB: One-in-five auto title loan borrowers have vehicle seized (2016) (accessed 2026-10-09)
- CFPB: Payday loans, auto title loans, and high-cost installment loans: highlights from CFPB research (2016) (accessed 2026-10-09)
- eCFR: 12 CFR 701.21, Loans to members (payday alternative loans) (accessed 2026-10-09)
- CFPB: Should I get a payday loan if I need money now? (accessed 2026-10-09)
- 211: Find local help (accessed 2026-10-09)
Last updated 2026-10-09. How we research and update pages.