Even though lending standards have tightened, people can find it harder and harder to borrow money. They may look to a car title loan because since these loans give the lender more protection, they are still being lent to borrowers. Lenders loan you less than the auto is worth, but they do not check your credit or require a co-signer. The loan is rapidly approved within one hour, and a check is issued immediately. Remember that the Lender retains the right to take your vehicle and sell it if you don't repay on time. Since risk for the lender on this type of loan tends to be higher, the interest rate charged also tends to be higher. For this reason, this type of loan is typically considered only a short term loan, often only of a 30 day duration.

Before you use a car title loan, do your homework and understand how they work. Make sure that you will be able to either consistently make your payments on time, or be able to pay the loan back entirely in the required amount of time. Although Lenders will often allow you to keep the use of your auto, remember that if you default on the loan, you may lose the use of your car, which could have negative effects on your life. This should be weighed against the need for the loan and the advantages of obtaining the funds so quickly.