Auto title loan alternatives

Title loan alternatives with fast turnaround

Title loans aren’t the only way to get money on the same day you apply. But beware: Fast financing is often more expensive. If you want a loan that allows you to save on interest, you might have to wait to get your funds.

Payday loans

Payday loans work a lot like single-payment title loans, where your repayment is due in full plus interest and fees within a month. The main difference is they don’t require collateral. You can often get a payday loan on the same day if you apply in a store. You can also apply for payday loans online, though you likely won’t get your funds until the next day.

Read our pay-day loans guide

Credit card cash advance

If you already have a credit card, you can also take out a cash advance as soon as you can get to an ATM. Advances tend to come with higher APRs than your typical credit card purchase, though rates are often much lower than any other short-term loan product — starting at around 25%. On top of this, you typically have to pay a cash advance fee, usually around $10 or 5% of the advanced amount.

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Name	Product	Filter Values	Loan amount	Turnaround time	Requirements
OppLoans Installment Loans			$500 - $5,000	1 business day	Direct deposit, meet minimum income requirements, live in eligible state	Comes with the option to change your due date so you won’t fall behind on repayments.	Go to site More Info		loading Fetching your data...
Check Into Cash Payday Loan			$50 - $1,000	1 to 2 business days	Bank account, email address, phone number, US citizen or permanent resident, ages 21+	Plus, get access to check cashing, cell phone top ups, bill pay and more at one of its many storefronts.	Go to site More Info		loading Fetching your data...
Stilt			$1,000 - $25,000	2 to 3 business days	Be employed, have a US bank account, live in a state where Stilt operates, hold one of the following visas: F-1 and OPT, H-1B, H4, O-1, L-1, TN, J-1, DACA or be a US citizen.	No green card? You could still qualify for a personal loan.	Go to site More Info		loading Fetching your data...
Fast5kLoans Short-term Loans Connection Service			$100 - $35,000	As soon as the next business day	Regular source of income, verifiable bank account, US citizen, ages 18+	Get connected with multiple lenders you might qualify with — even if you have bad credit.	Go to site More Info		loading Fetching your data...
LendYou Short-term Loans			$100 - $15,000	Same business day to 1 business day	$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+	Get offers from potential lenders in minutes by filling out just one online form.	Go to site More Info		loading Fetching your data...

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Title loan alternatives for bad credit

Have the time to wait longer for your loan? You’ll find several less expensive options that don’t put your car on the line.

Short-term loans

Payday and installment loans are short-term options available to borrowers with bad credit. Installment loans are often in larger amounts and allow you to repay what you borrow over a few months to a year. Each are a viable alternative if you have bad credit and need between $1,000 and $10,000. Neither require collateral, though both are more costly than title loans.

Legit short-term loans

Payday alternative loans

Some federal credit unions offer payday alternative loans — more commonly called PALs — as an affordable alternative to title and other short-term loans. The application is more involved than a title loan, however. And you’ll have to become a member to get one. PALs also don’t allow rollovers, so there’s no risk of getting caught in a cycle of debt. But that also means your loan is firmly due when it’s due.

Hoe payday alternative loans work

CDFI loans

Some local banks and credit unions are registered as community development financial institutions. CDFIs are nonprofit organizations with a mission to provide financial resources to underserved communities. Some — like the South Bronx’s Spring Bank — offer affordable short-term loan alternatives designed to help improve your overall financial well-being.

Loans from friends or family

Instead of borrowing from an outside company, you also might want to rely on friends or family for help when you’re in a pinch. You might even want to draw up a loan contract if you’re not comfortable accepting the funds as a gift. Or you can try to monetize your social network by starting a crowdfunding campaign that you won’t have to pay back.

4 alternatives that aren’t loans

A loan is a one-time fix that might not be the best solution if you’re frequently short on cash. If you find yourself considering short-term loans often, look into these alternatives first.

1. Take on a side gig.

You don’t necessarily need to apply for another job. Something as simple as taking online surveys or selling those photos you’d normally post on Instagram could make you the couple hundred extra dollars a month you need to cover your personal expenses.

2. Find local assistance programs.

Frequent short-term loan borrowers might qualify for government assistance programs to help cover the cost of basic expenses like food, child care or housing. Find out programs available in your area in our guide to payday loan alternatives.

3. Negotiate with your creditors.

Borrowing to cover your bills? Reach out to your creditors and explain your financial situation. Your creditor might be willing to extend a modified repayment plan, more favorable terms or reduced interest until you’re on solid financial ground.

4. Sign up for credit counseling.

Don’t know where to start? Consider working through your debt with credit counseling. You’ll meet with an adviser to come up with a plan to get your finances back on track. You can find a list of government-approved credit counseling agencies on the Department of Justice’s website.

Are title loans bad?

Not necessarily, though it depends on your financial situation. If you need money fast and don’t have good credit, it can be a cheaper alternative to payday loans.

Title loans often have a high cost per year, but they typically don’t cost more than $10 to $15 per $100 borrowed — if you’re able to pay it back on time.

It starts to add up when you roll over your loan. The more often you renew your loan, the more you’ll pay in interest and fees — and the higher the risk of becoming trapped in a cycle of debt.

More than 87% of single-payment title loan borrowers roll over their loans at least once, according to the Consumer Financial Protection Bureau. And about 20% end up losing their car.

To avoid a tough outcome, make sure you’re able to afford your repayment. If not, consider a more viable alternative.

Bottom line

Title loans involve some risk: You can find yourself caught in a cycle of debt or even lose your car. But they can help when you need money fast and don’t have the best credit. Weighing the alternatives can help you make sure you’re applying for the best option available to you.

Learn more about how these options work in our comprehensive guide to title loans.

Frequently asked questions

• I don't have a bank account. Are title loans my only option?

  No, but your options can be thin. Some payday loan providers allow you to get funds without a bank account if you apply in person, though availability depends on where you live. Learn more about no-bank-account loans when weighing your options.

• Can I get a title loan without proof of income?

  Yes, though not in all states. Some require title loan providers to verify your income, while others don’t. But you might want to seriously think about alternatives before applying for a loan that doesn’t verify your income — they can be even more expensive.

  Learn more about how to get a title loan with no proof of income.

• Do banks offer title loans?

  No. Many banks offer secured personal loans, which you can back with your car’s title. These loans tend to have much lower rates than title loans, but they aren’t as fast and can have strict credit requirements.