How to compare title loan options: a checklist, in writing

To compare title loan options, get each one in writing and line them up on the same points: the total cost to finish, the payment amount and schedule, the number of payments and the end date, every fee, what happens to your car title, and what happens if you miss a payment. Compare the same numbers for staying in your current loan, using your payoff amount. The option with the smallest monthly payment isn’t always the one that costs least; the Consumer Financial Protection Bureau notes that a longer loan term may mean cheaper monthly payments but more interest over the life of the loan. Below is a checklist you can use for any title loan refinance or buyout you’re considering, and why having it all in writing matters.

You’re not alone

If you’re trying to make sense of your title loan’s real cost, you’re in a very big group. The Pew Charitable Trusts found that more than 2 million Americans use title loans each year and spend about $1,200 each in fees on loans that average about $1,000. In Texas, the Office of Consumer Credit Commissioner’s 2025 annual report shows title loan businesses reported 74,839 consumers with single-payment title loans and $247,846,882 in fees on those loans during the year. And the CFPB’s national study found that more than four in five single-payment title loans were renewed on the day they were due. Comparing carefully isn’t being difficult. It’s the smartest thing you can do before you sign the next agreement.

The checklist: what to compare, side by side

Ask for each option in writing, then fill in the same lines for each one, including your current loan:

1. Total cost to finish. Add up every payment you’d make from today until the loan is done. This is the number that tells you what the option really costs. If someone can’t give you enough information to work it out, that’s worth noticing.
2. Payment amount and schedule. How much, how often (weekly, every two weeks, monthly), and on what dates. Make sure the dates line up with when you get paid.
3. Number of payments and the end date. A clear final payment date is how you know the loan actually ends. Compare it with how long you’d keep paying if you stayed where you are.
4. How much of each payment lowers the balance. On some title loans, most of the payment is a fee, so the balance barely moves. Ask how payments are applied. Here’s why a title loan balance can stay the same.
5. Every fee, by name. Origination or processing fees, late fees, renewal fees, and any add-on products. Ask what each one is for. Our guide on title loan fees and add-ons explains what to look for.
6. The APR. The CFPB explains that the APR is the interest rate plus any additional fees charged by the lender, and that you should compare APRs to APRs, not APRs to interest rates.
7. What happens to your title. Who holds it, when the current lender releases it, and exactly how and when you get it back at the end. See how to get your car title back after payoff.
8. What happens if you miss a payment. Late fees, grace periods, who to call, and what happens to the car.
9. Paying off early. Whether you can pay it off ahead of schedule, and whether there’s any charge for doing so. The CFPB suggests checking your contract for a prepayment penalty.

The smallest monthly payment and the lowest total cost are not always the same option. Look at both.

Why getting options in writing matters

Phone calls and quick conversations are easy to misremember, especially when you’re stressed. Written options protect you in a few simple ways:

• You can compare the same things. It’s nearly impossible to compare a number someone said out loud with a number on paper.
• You can take your time. You can read it at home, run the numbers, and ask someone you trust to look at it.
• You avoid misunderstandings. The CFPB’s advice on car loan arrangements is to get the agreement in writing to avoid miscommunications. The same goes for any title loan option.
• You have a record. If something doesn’t match what you were told later, you have the document.

Refinance vs. buyout: questions to ask

If you’re trying to refinance your title loan, a refinance usually means another title lender pays off your loan and writes you a new one. A title loan buyout means another company pays your current title lender directly, the lender releases its hold on your title, and you then work with that company under a new written agreement. For either one, ask:

• Who pays my current lender, and how will I know it’s been paid in full?
• What payoff amount are you using, and as of what date?
• Is this a new title loan, or a different kind of agreement? What exactly am I signing?
• Who will hold my title, and when do I get it back?
• What is the total I’ll pay from start to finish, and what is the final payment date?

Don’t forget to compare with staying put

Your current loan is an option too. Get your title loan payoff amount in writing and estimate what you’d pay if you kept going the way you are. If you’re paying a renewal fee every month and the balance isn’t moving, staying put can be the most expensive choice of all. Our guide to refinancing now versus keeping on paying walks through how to think about it.

Be careful with

• Anyone who promises a specific payment or savings before they’ve seen your payoff amount and your situation.
• Anyone who won’t put the numbers in writing.
• Pressure to sign before you’ve had a chance to read everything and ask your questions.

Where ReDrive fits in

At ReDrive, our team in Plano, TX puts your options in writing and walks you through them before you sign anything, so you can compare them against your current loan using this same checklist. Bring your title loan agreement and your payoff amount, and we’ll go through it with you, honestly and without pressure. We’ll help you see what options you may have with ReDrive, including our title loan refinance & buyout program, and you decide what’s right for you.

Quick answers

What should I compare when refinancing a title loan?

Compare the same points for every option, including your current loan: the total cost to finish, the payment amount and schedule, the number of payments and final payment date, how much of each payment lowers the balance, every fee, the APR, what happens to your title, what happens if you miss a payment, and whether you can pay off early without a charge. Get each option in writing so you can compare them line by line.

What is the difference between a title loan refinance and a title loan buyout?

A title loan refinance usually means another title lender pays off your current loan and writes you a new one. A title loan buyout means another company pays your current title lender directly, the lender releases its hold on your title, and you then work with that company under a new written agreement. For either one, ask who holds your title, when you get it back, and what you’ll pay in total.

Why should I get title loan options in writing?

Written options let you compare the same numbers side by side, read everything at home without pressure, and keep a record of what you were told. The CFPB recommends getting any agreement with a lender in writing to avoid miscommunications. Be cautious with anyone who won’t put the numbers in writing.

Is the lowest monthly payment always the best title loan option?

Not always. The CFPB notes that a longer loan term may mean cheaper monthly payments but more interest over the life of the loan. Look at the total cost to finish and the final payment date alongside the monthly payment, and compare all three with what you’d pay by staying in your current loan.

This article is general information, not financial or legal advice. Programs, rates, and eligibility vary by lender and change over time. Always confirm the full terms in writing before you sign anything.