What the research shows
The Consumer Financial Protection Bureau studied millions of single-payment title loans and found:
- The typical loan was about $700 with an annual percentage rate (APR) of about 300%.
- About one in five borrowers had their car or truck seized for failing to repay.
- Most lender business came from people who re-borrowed six or more times, rolling the debt over and over.
How title loans trap borrowers
Many title loans are due in 30 days. If you cannot pay the full amount, you may be offered a rollover: pay the fee and borrow again. Fees pile up while the original debt stays the same, and the car remains at risk the whole time.
Safer alternatives
- Credit union payday alternative loans (PALs): small loans from federal credit unions with APRs capped at 28%.
- Employer pay advances or hardship funds.
- Local charities and 2-1-1 for one-time help with rent, utilities or car repairs.
- TANF emergency or diversion payments in many states (see TANF transportation help).
- Payment plans with the company you owe.
If you already have a title loan
Ask the lender for an extended payment plan, which some states require. Pay down the principal, not just the fee, whenever you can. If you think the lender broke the law, contact your state attorney general or file a complaint with the CFPB.
Frequently asked questions
Can I lose my car with a title loan?
Yes. If you do not repay, the lender can repossess the car. The CFPB found that about one in five single-payment title loan borrowers lost their vehicle.
Are title loans legal in every state?
No. Rules vary widely, and some states ban or strictly limit high-cost title loans.
Related help
Find help in your state
- California
- Texas
- Florida
- New York
- Pennsylvania
- Ohio
- Georgia
- North Carolina
- Michigan
- Illinois
- All 50 states + DC
Reviewed November 2026. This page was researched using official government and program sources. Programs change often, so please confirm details with each program before applying. How we research.