Car Title Loans In North Carolina – Are They Legal

Car title loans have been around for years and are popular in many parts of the country. However, if you’re looking for a title loan in North Carolina, there are a few things to know. First of all, title loans are not currently legal in NC. Simply put, any resident of North Carolina is not eligible to apply with a lender anywhere within the state. This means you can’t apply with a local or our out of state lender online or in person.

Even though online car title loans are banned in Greensboro and all throughout the rest of the state, that doesn’t mean you don’t have options. Let’s break down the current state of affairs in NC and what you can do if you need emergency cash.


Why Are Car Title Loans Allowed In Other States But Banned in NC?

Title loans are sometimes considered to be “predatory” by many because they usually come with high interest rates and fees. There’s also the risk of having your vehicle repossessed by a lender because you missed payments or defaulted on the loan. In North Carolina, lawmakers have decided that title loans are not in the best interest of consumers and have banned them outright.

State law specifically says these loans are “unlawful,” and any lender within the state that tries to give you one could be subject to penalties. At this time, title loans and most other types of short term loans are outlawed within the state. That means it will be difficult for anyone to get approved for installment or payday loans in NC.


What Else Can You Do If You Need Money In North Carolina?

Just because title loans aren’t allowed in NC doesn’t mean there aren’t other options for getting emergency cash. Here are some ideas:

– Borrow from family or friends: This is always the best option if it’s available to you. Family and friends usually give you a loan with little or no interest attached.  Remember to put something in writing so there’s no confusion about terms later on.

– Apply for any type of unsecured loan from a local lender. While these lending offers tend to require decent credit, the rates and fees are usually lower than what’s typical with a secured loan. Besides the low APR, you don’t need to put up your vehicle’s equity as collateral for a loan.

– Work with a local company if you currently live outside the state or have a second home in another state. Just because title loans are not allowed in NC doesn’t mean you can’t qualify with an out of state lender. Anyone in a neighboring state can apply for online title loans or meet with a company in their city. The same is true for someone that’s a resident of North Carolina but lives elsewhere. Don’t hesitate to use a vehicle as collateral for a secured loan if you need emergency cash. Most lenders work with applicants in states in the South and you shouldn’t have trouble getting approved.


Online car title loans are not allowed in the state of North Carolina.

How To Get Cash with Bad Credit in NC & Avoid A Title Loan

As we mentioned above, you’ll not get a car title loan in North Carolina because of current lending laws, and it doesn’t matter if you have bad credit or perfect credit. But what about if you have bad credit and still need fast funds within the state? Here are some ideas on how you can take out a bad credit loan in Raleigh:

– Get a credit card that reports to the credit bureaus: Secured credit cards will almost always have collateral based on an earlier deposit you made. Your initial credit limit is often the same as that first deposit amount. For example, if you deposit $400, your credit limit is $400. This is a great way to reestablish your credit because you’re effectively borrowing from yourself. Work to make your payments on time and in full each month, and also contact your lender to see if they can raise the credit limit once you make consistent payments. By doing that, you can avoid the prospect of having to consider title loans in North Carolina!

– Get a co-signer: If you have trouble getting approved for a personal loan or credit card, ask someone with good credit to co-sign. This means they agree to be responsible for the debt if you can’t make payments. Repay the full amount owed, and don’t bother applying for motorcycle or car title loans in North Carolina with a co-signer! Even though that person may live out of state, you’re still on the application, and the funding request will be denied by any more reputable title loan providers.


What Else To Know About Title Loans In North Carolina

Even if title loans were legal in North Carolina, you should know some things before agreeing to a contract. Here’s what to keep in mind:

– Title loans are very expensive: Interest rates can be as high as 300% APR! That means if you borrow $1,000, you could end up paying back $3,000 or more once all the fees and interest are added. And that’s just for a one-year loan!

– These loans have shorter terms than other unsecured loans: Most title loans must be repaid within less than a year. While that timeframe is shorter than what is seen with a payday loan, it’s still quicker than the terms for most payday loans. But that doesn’t give someone in Charlotte or Raleigh much to come up with the money so it’s important only to borrow what you know you can repay.

– You can’t apply for a title pawn in Charlotte, NC. Some people think that because there are title pawning companies in Charlotte, they can pawn a vehicle with a local pawn shop. However, the same restrictions apply here, and you won’t be eligible for a car title loan or title pawn in Charlotte, Raleigh, or anywhere else in NC.


Even though there is some traction to change the lending laws in North Carolina, it seems that title loans will be outlawed for quite some time. Keep checking with the North Carolina Department Of Commerce for more information about changes to title loans and unsecured lending laws.


What are the title loan lending laws in NC?