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What is a Utah Title Loan?

A Utah Title loan is a loan secured by a title to an asset (often a car), which the lender will repossess and sell if the borrower defaults, according to the relevant legislation for the state of Utah. Title loans are infamously easy to obtain, and easy also to lead borrowers into debt. Although title loans tend to be for small amounts (~$1000), they typically have short payment periods (most often, 30 days), and, more significantly, lenders are known to engage in such predatory habits as setting severely high-interest rates (on average, 25% per month, or an annual rate of 300%). A report in February 2018 by the Center for Responsible Lending and the Consumer Federation of America found that the average title loan borrower will pay $2,142 in interest on a loan of $951, and will renew the loan eight times. That said, some would argue that title lending, in light of its disreputable history, has since become competitive in terms of providing a safe and honest practice. Not to mention that many states have issued laws regulating the practice in an effort to protect borrowers from being trapped by debt. Such laws include caps in interest rates, loan amounts, and renewals. In addition, most title lenders are required by law to state conspicuously the dangers of title loans and inform the applicant of other, safer options, before entering into an agreement. However, not all states have very stringent restrictions. In Utah, for instance, there is no cap on interest rates or loan amounts. Utah title lending laws have relatively mild restrictions, such as limitations on renewals, and the requirement for the details of the loan to be clearly reviewed with the borrower before entering into a title loan agreement. Below, we at Online Loans have broken down the assorted information available across the web into a convenient need-to-know to make getting you title loan as simple as possible.

Table of Contents

Rates (%)

There is no set limit on title loan interest rates in Utah. On average, title loans feature rates of about 25% per month, amounting to an APR of 300%.

Credit Requirements

In Utah, as in many other states, lenders will not be required to check an applicant’s credit, since title loans are secured by the title to the borrower’s asset. All that is generally required to obtain a title loan in Utah is hence a lien-free vehicle and a government-issued I.D. This is a major reason for title lending having such a disreputable history, since it is typically easy for just about anyone, including those unable to afford a loan, to take out a title loan.


Utah legislation regarding title lending states that: 7-24-201. – Lenders must be registered. 7-24-202. – Lenders must conspicuously state, and review orally with the borrower, the details of the loan (including the amount, rates, and due dates). 7-24-202. – Lenders may not extend a title loan which exceeds the market value of the vehicle, nor enters into a loan agreement without consideration for the borrower’s ability to pay off the loan (in terms of income, employment, and debt).

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