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 you need to know. First of all, title loans are not currently legal in NC. Simply put, that means that 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 directly in person.

Even though title loans are currently banned in Greensboro and all throughout the rest of the state, that doesn’t mean you don’t have options available to you. Let’s break down the current state of affairs in NC and what you can do if you have a need for 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 that auto title 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 loans 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 when you need it. Here are some ideas:

– Borrow from family or friends: This is always the best option if it’s available to you. Family and friends will 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.

– Get a personal loan from a bank or credit union: Personal loans tend to have lower interest and the banks and lending institutions know how to work with the NC state regulators to offer these types of unsecured loans even if the interest rates are still a bit high.

– Work with a local title loan company if you currently live outside the state or if you have a second home in another state. Just because title loans are not allowed in NH doesn’t mean you can’t qualify with an out of state lender. Anyone in a neighboring state is free to 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 title loan 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’re not going to 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 some 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 that is 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. Just make sure you 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 on your own, ask someone with good credit to co-sign for you. This means they’re agreeing to be responsible for the debt if you can’t make payments. Just make sure you 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 of the more reputable title loan providers.


What Else To Know About Title Loans In North Carolina

Even if title loans were legal in North Carolina there are some things you should know before signing on the dotted line. Here’s what to keep in mind:

– Title loans are very expensive: Interest rates on vehicle title loans 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 up. And that’s just for a one-year loan!

– Car Title loans have shorter terms than other types of unsecured loans: Most title loans need to 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 to only 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 that they can possibly 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?


Apply Now...