What States Have the Highest Title Loan APR? State-by-State Rate Comparison

The same car, borrowed against for the same amount, can cost a few dollars a month in one state and hundreds in another. If you are asking what states have the highest title loan apr, the short answer is the states that authorize title lending through pawn laws, title pledge acts or broker arrangements, where charges of around 25% per month, roughly 300% APR, are common. At the other end are states with 36% APR caps or usury limits that effectively shut traditional title lending down. In this guide, Auto Cash Title Loans compares the high-cost, mid-tier and capped states, and explains the laws behind the numbers. Rules change, so treat this as a starting point and confirm current law with your state regulator.

Part of our Title Loan Costs & Rates guide →

Why title loan APRs vary so much by state

There is no general federal cap on title loan rates. The main federal exception is the Military Lending Act, which caps most consumer credit for active-duty service members and their dependents at a 36% Military APR and bars lenders from using a vehicle title as security for covered loans. Everyone else depends on state law. Title loans are legal in only about half of states, and the states that allow them generally use one of three legal routes:

• Pawn statutes: the loan is treated as a pawn of the title, with charges set by the pawn law.
• Title pledge or title lending acts: standalone laws that authorize title loans and set maximum monthly charges, sometimes tiered by loan size.
• Broker structures: a business arranges a loan from a third-party lender and charges its own fee on top of the interest, producing a much higher total cost.

States without one of these routes typically subject title loans to general small-loan or usury limits, often in the range of 36% APR or less, which most title lenders consider unworkable.

States commonly cited for the highest title loan APRs

These states are frequently cited at the top of the range. The figures below are general descriptions of how the laws have worked; verify current rules before relying on them.

• Georgia: Title loans operate as “title pawns” under the state’s pawn law, which has allowed charges of up to 25% per month for the first three months and a lower rate after that, so early-month costs are around 300% APR.
• Mississippi: The Title Pledge Act has allowed charges of up to 25% per month, roughly 300% APR, on 30-day pledges.
• Alabama: Title pawns operate under the state’s pawnshop law, with charges of up to about 25% per month.
• Texas: Title loans are commonly arranged through credit access businesses. The lender’s interest is limited, but the broker’s fees are added on top, and total costs often run well into triple digits.
• Missouri: State law has not set a specific interest cap on title loans, leaving pricing largely to lenders, with triple-digit APRs common.
• Tennessee: The Title Pledge Act allows monthly interest plus a fee that together can reach roughly 22% per month, about 264% APR.

Mid-tier and variable states

In some states, title loans are legal but pricing depends on the loan size, the lender or recent reforms. Examples often mentioned:

• Arizona: tiered monthly rate caps that decrease as the loan amount increases.
• Nevada: no specific rate cap on title loans, but lenders must assess ability to repay and follow limits on loan length and amounts.
• Utah and Idaho: title loans permitted without a specific APR cap, so pricing varies by lender.
• Virginia: overhauled its small-dollar and title lending rules in 2020, substantially changing what lenders can charge.

In these states, two lenders in the same city can quote very different APRs, which makes comparing written offers especially important.

States with 36% caps or effective bans

A growing number of states have capped rates at levels that end most traditional title lending:

• Illinois: the Predatory Loan Prevention Act (2021) set a 36% all-in APR cap on most consumer loans, including title loans.
• New Mexico: a 36% APR cap on most consumer installment loans took effect in 2023.
• South Dakota: voters approved a 36% cap by ballot measure in 2016.
• Montana: voters approved a 36% cap that covers title loans in 2010.
• California: a 2019 law capped rates on many consumer loans between $2,500 and $10,000 at roughly 36% plus the federal funds rate; smaller loans follow separate rules.

Many other states, including New York, New Jersey, Pennsylvania, Massachusetts and North Carolina, do not permit traditional high-cost title lending under their usury and small-loan laws. Our list of states where title loans are illegal covers them in more detail. In these states, be cautious about online lenders offering title loans; lending without a required state license is generally illegal and can leave you with fewer protections.

What the difference means in dollars

A quick comparison shows why your state matters so much. For a $2,000 loan held for one month:

• At 300% APR (25% per month): about $500 in charges
• At 36% APR (3% per month): about $60 in charges

Renew the high-cost loan four times by paying only the monthly charge and you will have paid $2,000, the full amount borrowed, while still owing the principal. CFPB research found most single-payment title loans are renewed rather than repaid when first due, and about one in five loan sequences ends in repossession.

Reading the APR on your own loan

State law sets the ceiling, but your contract shows what you will actually pay. The Truth in Lending disclosure must list the APR, finance charge, amount financed and total of payments. Lenders and advertising often quote a monthly rate instead; multiply it by 12 for an estimate, and expect the disclosed APR to be higher if fees are included. Our guide to title loan APR vs monthly rate explains the conversion.

How to use this information

• Check your state’s rules on your financial regulator’s website, or start with our overview of title loan regulations by state.
• Confirm the lender’s license in your state before you share documents.
• Compare written offers by APR and total of payments, not monthly payment alone.
• Consider alternatives, especially in high-APR states, where the gap between a title loan and a credit union Payday Alternative Loan (capped at 28% APR at federal credit unions) is largest.
• Military borrowers should read our guide to title loans for military members to understand Military Lending Act protections.

For more on pricing, see our title loan interest rates hub.

Frequently asked questions

Which state has the highest title loan APR?

It depends on the lender and loan, but states such as Georgia, Mississippi, Alabama, Texas and Missouri are frequently cited for title loan costs around or above 300% APR. Laws change, so check current rules.

Which states cap title loans at 36%?

Examples include Illinois, New Mexico, South Dakota and Montana. Many other states effectively prohibit traditional title lending through usury or small-loan laws.

Can I get a title loan from a lender in another state?

Lenders generally must follow the rules and licensing requirements that apply to you as a borrower, and many will not lend across state lines. Be wary of online lenders not licensed in your state.

Is there a federal cap on title loan APR?

Not for most borrowers. The Military Lending Act protects active-duty service members and their dependents; otherwise, state law sets the limits.