If the 300% APR scares you (and it should), consider every other avenue before signing your title away.
1. Payday Alternative Loans (PALs)
If you are a member of a federal credit union, ask about a PAL. These are small loans (up to $2,000) with capped interest rates (usually max 28%). They are significantly cheaper than title loans and designed for consumers with bad credit.
2. Payment Extensions
If you need the money for a bill (rent, electric, water), call the provider first. Most have hardship programs that grant a one-month extension. This solves the immediate problem for free.
3. Cash Advance Apps
Apps like Earnin, Dave, or Brigit allow you to borrow small amounts ($100-$250) against your next paycheck with 0% interest (often just a monthly subscription or optional tip). It's a much smaller scale, but zero risk to your vehicle.
4. Friends & Family
It's an awkward conversation, but borrowing $500 from a relative is better than owing $1,500 to a lender. Put terms in writing to show you are serious about repayment.
Sarah Jenkins
Financial EditorSarah is a financial expert with over 10 years of experience in consumer lending. She is dedicated to transparency in the lending market.
