Instant Title Loans
in North Carolina

Can I Get A Title Loan In North Carolina

When you need to borrow cash, there can be limited options if you have poor credit or need to borrow more than a few hundred dollars. Here in North Carolina, title loans used to be a popular way to cash out equity from your vehicle. However, some of these secured lending options are not allowed within the state, and those still looking for a title loan will typically apply with an out of state lender or find a way to get a title pawn that uses their vehicle as collateral.

 

Are title loans banned in North Carolina?

Secured loans are allowed in many states and are an excellent way for people to use their car or truck as equity for a loan. A few states have banned these equity loans, placing this form of borrowing in the category of predatory lending practices. North Carolina was one of the first states to ban some forms of title loans in 2001. Some main reasons are mentioned below.

• The interest rate on these secured loans is excessively high. The interest rates start at 25 percent and go up to 300 percent annually. For example, if you take a title loan of $1,000 and repay the balance in a year, you'll pay well over $1,000 in interest. These finance charges can be much more than the initial loan amount.
• Some lenders aim to keep people in debt by offering very high-interest rates for title loans in Raleigh. Very few can afford the APR from car title loans, and lack of payment can lead to repossession. If you fall behind on your payment, and the title loan company can then repossess the vehicle and sell it at an auction. Most borrowers end up defaulting on the loans and losing their cars. The APR is high because creditors often won't check your credit and take on substantial risk with any loan they offer.
• They are marketed short term loans, but they often take 1 to 3 years to repay. That means you can end up paying thousands in interest charges over the life of the loan, not including the hidden terms and fees. Some states have established laws to limit either the loan term or the number and type of renewals allowed.

 

Alternative solutions to car title loans in North Carolina

• You can move out of the state and seek a title loan in South Carolina, where they are legal. Other nearby states may offer title loans as well. Side note: this is not something you should do.
• You may not need to leave the state to find a cash lender. Car title loans are readily available throughout many Southern states, and you can always apply with online lenders licensed in other states.
• You can ask for funds from different sources like family, friends, and relatives. The benefit of these loans is that the interest rate should be far lower than what you would get from a title loan company.
• You can also seek help from financial organizations and local credit unions, take out a title pawn, use a credit card, or try to acquire an advance paycheck. These options are hard to qualify for as the funds are limited. But you can expect a lower interest rate than what you would see from typical companies that offer car title loans.

 

Apply For A Vehicle Title Loan In North Carolina

While we've already touched on the legalities of title loans in NC, there remains the chance to get cash for your vehicle's equity in North Carolina. Some companies in Charlotte, Asheville, and Wilmington offer same day approval for car collateral loans, and that means you can borrow $5,000 or more with just your vehicle and income verification. Contact Southeast Title Loans at 1-800-308-1905 to see if you're eligible for a loan, and you can always complete our online application. You should hear back from our agents within 30 minutes or less.