If you own a car, and don't have too much of an outstanding loan against it, you can get a title loan, using your car as collateral against the loan. For most of us, our car is our means to make a living and a necessity in conducting our daily life. Since your car is such a big part of your life, make sure you have exhausted all other forms of borrowing money before considering a title loan.

Car Title Loan Amounts

The lender will need to evaluate your vehicle to determine how much it is worth. You can borrow up to a certain percentage of this value. So, if your car is worth $5,000, and the lender allows you to borrow up to 50% of its value, you can borrow $2,500.

Auto Title Loan Fees

The amount of fees can vary on auto loans, depending on the lender. Whatever, the fees are, you need to ask the lender what the annual percentage rate (APR) will be on the loan. Knowing the APR will give you a way to compare many lenders to see who is offering the best deal.

Auto Title Loan Rollover Features

Although auto loans are intended to be short term loans, many lenders will allow you to rollover the outstanding loan balance from month-to-month. However, just because it is offered, doesn't mean you should take advantage of it. Since interest rates are already high on these types of loans, rolling the outstanding balance over will only compound the interest charges.

Car Title Loans Can Lead to Car Repossession

Since you pledge the title of your car as collateral, the lender can repossess your car if you do not make your loan payments. For most of us, a car is a focal point of our lives. If you lose your car, it can be extremely difficult to keep a job - which provides money to support your standard of life.

Given the nature of car title loans, they should be considered only after you have researched all other loan options. If you have any doubts about your ability to repay the loan, you probably shouldn't get one. If you choose the route of an auto title loan, make repaying the loan a high priority.