Title Loan Terms Every Borrower Should Learn

For people learning how title loans work, there are some important terms to keep in mind. Here’s everything you need to know about title loan terms.

Title loans are a type of loan that lets you borrow using the title of your car as collateral. Some important terms to keep in mind are secured loan, collateral, lien-free, borrow amount, repayment period, and eligibility.

Understanding the definition of a title loan is a good way to start borrowing and using the title of your car to get fast cash. The rest of this article will cover how title loans work and all the important title loan terms you should know.

Title Loan Terms To Know

Secured Loan

One important term you should know is secured loan. This simply means that the loan is secured by using the title of your car. You’ll give the title to your loan representative once you’re approved for a title loan, and you’ll get the title loan back when you’ve completed all your payments. Don’t worry! You can still drive your car while you’re repaying your loan.


When a loan is secured, you’re putting collateral on the line for the loan. In the case of a title loan, the collateral is the title to your vehicle. This collateral reduces the risk for the lender and makes title loans more flexible in nature than other types of unsecured loans.

Because there’s less risk on the lender’s side, title loans generally offer higher amounts to borrow and more favorable terms for the loan, although the exact terms will vary based on eligibility.

title loan terms written in book


Another important term to remember is lien-free. This simply means that the title of your car has no outstanding judgments or liens on it. An example of having a judgment on your title would be if you’ve already taken out a title loan that you haven’t finished paying off.

If your car has a lien on it, you can’t get a title loan. Similarly, if you’re still making payments on your car, then you can’t get a title loan.

You need to own the car outright and have no outstanding judgments against it in order to be eligible for a title loan. In the event that you do have a lien on your car, it’s generally best to focus on paying that off before opting for a different loan.

Borrowing Amount

When compared with other types of loans such as payday loans and installment loans, title loans have a larger borrowing amount, meaning that they will let you borrow more money, which is generally paid back over a longer period of time.

With that in mind, you can use title loans as a resource when you have larger bills or an emergency that you can’t handle on your own, such as significant damage to your home that’s not covered by your insurance or expensive car repairs.

Knowing that you have access to larger borrowing amounts means that you can get a better understanding of when to rely on title loans for your needs.

Repayment Period

The repayment period starts as soon as you’ve borrowed the amount you qualify for on your title loan. You’ll be obligated to make regular payments to pay off your loan, and the amount you pay each period will depend on the terms laid out by your lender. Make sure to stick to the repayment period and prioritize making your payments on time.


Another important factor to consider when getting a title loan is eligibility. You should understand that when lenders mention eligibility, they’re referring to your verification, your title’s condition, and, in some cases, your credit.

You’ll need to have a driver’s license or another form of state-issued ID, a lien-free car title, and a quick inspection of your vehicle to be eligible. While some lenders won’t weigh your credit score as heavily, it may still be a factor that affects the terms of your loan.

girl showing off her title loan cash

How Missouri Title Loans, Inc. Can Help You

Getting a title loan can feel stressful, especially if you’re just getting used to title loan terms, but Missouri Title Loan, Inc. has representatives on standby to help you understand anything that’s foreign to you.

They can help you handle major expenses with borrowing amounts up to $15,000. To get started, you can fill out their online request form and meet a representative at a location of your choosing. Just make sure you bring your car, lien-free title, and valid state ID to the meeting.

Should you be approved, then you can get the fast cash you need on the same day or the next business day.

Submit An Inquiry Today!

Now that you understand the definition of title loan and important title loan terms to keep in mind, you’re all set to borrow smartly. Missouri Title Loans, Inc. has options to get the fast cash you need without the hassle of traditional loans.

So, if you need a title loan and the fast emergency cash it can provide, submit an inquiry with Missouri Title Loans, Inc. 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.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.