title loan


A loan provided to a borrower by using his/her free and clear car title as collateral. The potential borrower will be required to have the car's value assessed by the lender. A line of credit is then provided based on that assessment. If the borrower fails to pay back the loan in a timely fashion, the lender has the legal right to repossess the car and auction it off. Title loans can also carry high interest rates and stiff penalties.

Use title loan in a sentence

title insurance binder title paramount