Absolutely Essential Title Loan Terms And Definitions To Know

Title loans terminology can be confusing at times. And although the field of title loans can be full of jargon, nothing about the process at Texas Car Title and Payday Loan Services, Inc. is particularly difficult to understand. We want you to know the definition of title loan, along with essential title loan terms to make this a simple process. When it comes to getting this loan, knowing the words you’ll come across will eliminate any unwanted surprises. So, if you are ready, here is a deep dive into the terms you’ll need to know.

Know These Title Loan Terms While Going Through The Process

What Is A Title Loan?

First, you need to know the basics of title loans terminology. A loan on your car title is exactly what it sounds like — a cash flow option that lets you use your car title as collateral for the loan. This is where it’s important to understand the term collateral. The title serves as collateral for the loan, meaning we will put a lien on your title and we have the legal right to repossess the car if the loan is not paid off as agreed.

Doing so isn’t a malicious plot to steal your car; rather, it’s a way for us to protect ourselves from borrowers who have no intention of repaying the loan. By putting the car’s title on the line, the borrower is incentivized to keep to the repayment schedule. Don’t worry, though, we will never have you sign anything you’re not comfortable with, and you’ll reclaim your title once the loan is completely paid off. In addition, you can continue to drive as you pay off the loan.

What Is A Lien-Free Title?

An important term for title loans, lien-free indicates that your car’s title has no outstanding debts, judgments, or legal claims from a third party on it. Liens may be placed on your car as a way of deferring ownership to the dealership, creditor, or, in some cases, local government until a debt is paid. For example, a lien may be placed on your car if you take out a loan to buy it. The lien signifies that the dealership has legal ownership of the car until you finish paying off the loan.

When you get a title loan with our help, we will place a lien on your title until you’ve repaid the loan in full. That being said, we can’t place a lien on your title if you already have a lien on it. This is why it is important for you to check your title and make sure that it’s clear. If you are unsure of how to do that or you find that you do have a lien on your title, you will have to go to the DMV to get that taken care of before you come see us for this loan.

What Does Eligibility Mean?

Eligibility is something to consider when you apply for a title loan as well. In short, it indicates the amount of money we can lend you if you are approved for this loan. We determine how much you can get based on your vehicle’s resale value and its condition. This is the reason we need to inspect it before we can tell you if you are approved. Keep in mind that newer cars, luxury models, and cars that are well maintained will offer larger borrow amounts since these cars have more value.

What Does Process Mean?

The last thing you need to know when it comes to title loans terminology is the process. When we say “process” we mean the steps you have to take to find out if you qualify for this loan. The good thing is we make the process as simple as we possibly can. And we also make sure to keep the list of required items short. First, make sure you have these items for us to determine if you qualify for approval:

• Driver’s license or state-issued ID.
• Lien-free car title.
• Your car itself for inspection.

Once you have the items ready, you’ll want to fill out the online application provided on our website to begin. This sends your application to the nearest store so that you can get connected with a representative who will help you through the rest of the process. Once done, you can expect a call to review the loan process, what required items you need, and to set up your vehicle inspection either at the store or at a location of your choosing.

Regardless of where you end up meeting for the vehicle inspection, make sure you bring your necessary items to the meeting, and the representative will go over them to make a decision on whether or not you qualify for this loan. If you’re all set, you’ll know shortly whether you’re approved and how much we can lend you. If you are approved, you can get your money on the same day or the following bank business day.

Submit The Online Form Today!

Now that you understand the important title loans terminology you need to know to get started, as well as the definition of title loan itself, you’re all set to keep this option squared away for an emergency.

Life can throw a curveball at you and leave you reeling without a clear way forward. When that happens, consider taking out a title loan to tackle large bills or important expenses upfront. If that sounds like the right option for you, then get started online 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.