Car Title Loans In North Carolina - Are They Legal

There are a few things to know if you're looking for a car title loan in North Carolina. First, most types of 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. You can't apply with a local or out of state lender online or in person.

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

Why Are Car Title Loans Allowed In Other States But Not In NC?

Title loans have high interest rates, and although they are a last financing option, they can be difficult to pay back. Besides that, you risk having your vehicle repossessed by the lender if you default on payments. North Carolina lawmakers have banned these types of secured loans and claim they are not in the best interest of their constituents.

Because of those regulations, getting a loan from a direct lender licensed to offer title loans in North Carolina is nearly impossible, as most companies are banned from issuing loans 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?

Even though you can't use a vehicle as collateral for a loan in NC, that doesn't mean there aren't other ways to borrow fast cash:

- Borrow from someone you know. 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 unsecured loans from a local company. These lending offers require decent credit, but the interest rates are more favorable than what you'd get with a title loan.

- Anyone in a neighboring state can apply for online title loans. Don't hesitate to use a vehicle as collateral for a secured loan if you need emergency cash.

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

As mentioned above, getting a title loan in NC is challenging because these loans are mostly banned within the state. But what if there's a situation where you need emergency cash? Here are some ideas to get a bad credit loan in Raleigh:

- Get a credit card that reports to the credit bureaus: Secured credit cards use collateral to back up any money lent out. Your initial credit limit is often the same as that first deposit amount. With this type of card, you can avoid the prospect of having to consider title loans in North Carolina!

- Get a co-signer: If you can't get approved, ask someone with good credit to co-sign for a bank loan. Repay the total amount owed, and you won't have to apply for motorcycle or car title loans in North Carolina.

What Else To Know About North Carolina Title Loans

- Title loans have a high APR: The interest rates can be near 150%, making them difficult to repay.

- Most title loans are repaid over 1 to 4 years. That may seem like an extended period, but if you have a high interest rate, you'll pay thousands in interest over the life of the loan.

- You can't apply for a title pawn in Charlotte, NC. People assume that because they see title pawning companies in Charlotte, they can pawn a vehicle with a local lender. 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.

There is some traction to change the lending laws in North Carolina, but it's likely that short term loans will continue to be banned for the foreseeable future. Keep checking with the North Carolina Department Of Commerce for more information about changes to state lending laws.