An auto title loan is a loan that you can get by putting your car title up for collateral. These loans are usually very high interest, sometimes higher than 300 % depending on where you are and whom you see. Sometimes, your payments only cover interest.  If you pay more, you will pay down the principal balance, but, if not, you could be stuck paying on your loan forever. This type of loan is usually not advised. If you have an auto title loan you should put everything you can into paying this off as soon as possible.