Glossary

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Glossary of Loan Terms

APR (Annual Percentage Rate)
The yearly cost of borrowing, including interest and fees, expressed as a percentage.
Application
The process by which a potential borrower provides personal and financial information to a lender (or broker like Titlelo) to request a loan.
Auto Equity Loan
A loan that uses the equity in your car (how much it’s worth vs. what you owe) as collateral.
Auto Title Loan
Also known as a car title loan, pink slip loan, or title pawn. This is a secured loan where the borrower uses their vehicle's clear title as collateral. The borrower retains use of their car while repaying the loan.
Collateral
An asset (like your car) used to secure a loan. If you don’t repay, the lender can take the asset.
Credit Check
An examination of a person's credit history, typically performed by lenders to assess creditworthiness. Note: Many title loans facilitated by Titlelo do not require traditional credit checks.
Credit Profile
A summary of an individual's financial history, including their credit scores, debts, and repayment history.
Customer Support
Assistance provided by Titlelo's financial experts to answer questions, guide applicants through the process, and provide help with loan-related inquiries.
Default
Failure to repay a loan according to the agreed terms. This can lead to repossession.
Direct Deposit
A method of receiving funds electronically into your bank account.
Equity (Vehicle Equity)
The difference between the current market value of a vehicle and the amount still owed on it. For a car title loan, a clear (lien-free) title indicates full equity.
Financial Experts
Trained professionals at Titlelo who understand individual needs and help match borrowers with suitable lenders from their network.
Fees
Charges associated with a loan, which can include origination fees, late payment fees, or processing fees. These should be clearly disclosed by lenders.
Lender
An individual or financial institution (bank, credit union, lending company) that provides money to borrowers with the expectation that the money will be repaid, usually with interest.
Lien
A legal right to take your vehicle if you don’t repay your loan.
Loan Broker
A company, like Titlelo, that acts as an intermediary between borrowers and a network of lenders. They do not lend money directly but facilitate the loan process.
Loan Term
The amount of time you have to repay the loan (e.g., 30 days, 6 months).
Loan-to-Value (LTV) Ratio
The amount borrowed divided by the vehicle's value, expressed as a percentage.
Pink Slip Loan
Another common term for a car title loan, referring to the color of some vehicle titles.
Pre-Approval
A preliminary decision showing how much you might qualify to borrow before final approval.
Principal
The original amount of money borrowed, not including interest or fees.
Refinance
Replacing your current title loan with a new one, often to get better terms.
Registration Loan
A type of loan (e.g., in Arizona) using your vehicle registration instead of the title.
Repayment
The act of paying back a loan according to the agreed-upon terms, including principal and interest.
Repossession
When a lender takes back your vehicle because of non-payment.
Secured Loan
A loan backed by collateral, like your car in a title loan.
State-Specific Laws
Regulations enacted by individual states that govern lending practices, including limits on interest rates, loan amounts, and collection procedures for title loans.
Title
A legal document proving ownership of a vehicle.
Title Loan
A short-term loan where your vehicle title is used as collateral.
Title Pawn
Another term for a title loan, commonly used in southern U.S. states.
Transparency
The principle of being open and honest about loan terms, fees, and policies, which Titlelo advocates for its consumers.
Underwriting
The process a lender uses to evaluate your application and vehicle value.
Value (Vehicle)
The estimated worth of your car based on its condition, age, and mileage.
Verification
The process of checking your documents, vehicle status, and ID before approving a loan.