A common question for those new to car title loans is “How long do I have to pay a title loan?”. Unfortunately there is no simple one sentence answer. The truth is it depends on where you get the loan and which lender you deal with.
There are two main types of title loans, as we have written about before. These loans have very different timeframes for repayment. On the one hand, single payment title loans are typically for a period of 30 days. These include many title pawns. In these cases, the loan amount is due within 30 days.
The second type of title loan is one with monthly installments. These are very different than single payment title loans and repayment can be anywhere from a few months to several years.
Two Main Title Loan Types
As mentioned, the two main title loan types have very different payment timeframes. They are summarized below:
| Title Loan Type | How Long to Pay |
| Single Payment | 30 Days |
| Monthly Payment | 3 months to 3 years |
Online Title Loans
Many online title loans have monthly installments. These can have payment terms of anywhere from a few months to a few years. As we mention often, title loans are short term solutions, this is the same for online title loans.
Paying Title Loans Early
Preparation for any title loan, regardless of type, is a very important step that we write about often. We suggest avoiding any title loan that has a prepayment penalty of any kind. Make sure to prepare for the loan before proceeding.
This means that, with no prepayment penalty, you can pay the title loan in full at any time. This is an especially important factor for multi year title loans. We do not recommend any title loan that can be considered long term.
The interest on one of these loans is comparably high; meaning the longer the term the more expensive the loan.
Some multi year title loans can cost three, four, or even more times the initial principal to repay. This means a $1,000 loan cost cost over $4,000 in some cases if the loan is extended too long.
The only way to avoid this is to pay the loan early (without any penalty of course). Find out some methods for paying off a title loan fast.
Conclusion
How long do you have to pay a title loan? The right answer is – 30 days for Single Payment Title Loans and Title Pawns; and 3 months to 3 years for monthly installment title loans.
The type of title loan you are able to get depends on the state you get the title loan. If you get a title loan in Orlando Florida for example, then the loan term is 30 days with a single payment.