The Simple Glossary Of Essential Title Loan Terms
Title loans may seem intimidating and complicated because they appear like “fancy financial terms.” However, once you get past the title loan terminology, you’ll realize that this is a straightforward loan you can get. In this article, we’ll walk you through some common title loan terminology, so you can have a more concrete picture of the definition of title loan, its process, and how it can be an option to help with a financial emergency.
The Most Important Title Loan Terms
The Definition Of Title Loan
Let’s start with a general definition of title loan. It is a personal loan where you use your paid-off, lien-free vehicle title as collateral for the loan.
Unlike bank loans, you do not need to meet a minimum credit score or income level to find out if you qualify. The vehicle title already “secures” the loan and guarantees you will pay the loan back on time.
That’s why title loans are sometimes called secured or bad credit loans. Your credit history or employment background is not as important as whether or not your vehicle title meets the requirements, which are:
- The vehicle title is under your name, and you can present valid proof of identity (i.e., a government-issued ID such as a passport or driver’s license)
- The vehicle title is lien-free
- The vehicle is already fully owned, and any car loans or in-house financing has been paid
This is the most misunderstood title loan terminology, so let’s explore this term in detail. Many people think they must give up the car as soon as they sign the title loan. But that isn’t how collateral works.
You use the title to guarantee that you will fulfill the loan obligations. So, as long as you follow the payment schedule, you will enjoy full use of your car. The only difference is that you will have a lien on your vehicle title, which is lifted when you pay off the loan.
This title loan terminology is more familiar to you than you think. A lien is a legal right over a property. You already experienced this when you took out a car loan. The bank financed the car, and you paid them back in installments.
While you were able to bring home the car, the bank placed a lien on the title until you completed the payments. If you could not finish the loan, they had the legal right to sell the car to settle the remaining debt.
You’ve done this before! Liens in title loans work the same way. Now that you’re familiar with how liens work on a car loan, you can be confident knowing how liens work with title loans, too.
The vehicle inspection is a physical examination of your vehicle to determine its general market value. It considers factors like the vehicle model and age, mileage, the appearance of the interiors and exteriors, and whether or not the parts are in good working condition.
The vehicle inspection is conducted to determine the loan amount that you can qualify for. You can borrow from $300 to $2,500 based on its results.
This legal contract will contain the total loan amount, interest rate, and payment terms.
It is essential to review the loan agreement and understand everything. At Tennessee Title Loans, Inc., we value transparency and communication, so our loan representative will go through it with you and explain it in simple terms.
So, even if you are still unfamiliar with title loan terminology, rest assured that you will have the information to make a confident, informed decision.
Help Me Get A Title Loan Now!
Now that you know more about the definition of title loan, and the basic title loan terminology, the next important question is, “How do I get a title loan?”
At Tennessee Title Loans, Inc., our straightforward title loan process is quick and easy. You can complete the process in as little as 30 minutes, providing you with the urgent money you need to tackle a financial emergency. Here’s how it works:
- Consult with our loan representative. You don’t have to visit a branch or go through a hotline. We go to you! Just fill up the inquiry form, and a representative from our nearest branch will reach out to personally explain the loan process and set an appointment to complete the process.
- Submit requirements. You can go to any of our many branches around the state or request the loan representative to meet you somewhere convenient. Bring your vehicle title, your ID, and your vehicle. A representative will confirm the documents and conduct a concise vehicle inspection. You can done in as little as half an hour.
- Collect your emergency cash. If you’re eligible for the loan, you will be able to receive the money either that day or the next day.
Fill Out Our Online Form Today!
If you’re facing a financial emergency, a title loan with Tennessee Title Loans, Inc. could be an option to help address your urgent needs.
By understanding title loan terminology, you can make an informed decision about getting a title loan., Fill out our online form to start the title loan process today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.