Car Title Loans Quiz

6. What amount does a borrower have to pay off in order to renew a title loan the first and second time?

b. CORRECT!

A borrower must pay off all of the interest in order to renew a title loan one or two times. After the second time, the borrower must reduce the principal by 10 percent in order to renew the loan.

Reference: Missouri Secretary of State Website (n.d.). Department of Economic Development, Division 140, Division of Finance, Title Loan Companies. http://www.sos.mo.gov/adrules/csr/current/20csr/20c1140-29.pdf.