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Fortune
Fortune
Tanza Loudenback, CFP®

What to know about title loans

Photo illustration of a set of car keys on top of paperwork with a toy car and calculator in the background. (Credit: Photo illustration by Fortune; Original photo by Getty Images)

There are a number of ways to borrow money in a pinch. 

A title loan is a short-term loan that may be particularly appealing to people with bad credit who own a car outright and are comfortable using it as collateral to get cash quickly. But these loans come with a unique set of risks, and many states have made them illegal.

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