A car title loan, or basically title loan, is a loan where the borrower provides their car title as collateral for a loan.These loans are typically short-term, and tend to carryover higher interest rates than other sources of credit. These loans have higher interest rates than other sources of credit due to the fact that the lender typically does not check credit and that the only consideration for the loan is the value and condition of the vehicle.
Most title loans can be acquired in 15 minutes or less on loan amounts as little as $100. Most other financial institutions won't loan under $1000 to anyone without any credit as they deem these not profitable and risky. In addition to verifying the borrower's collateral, lots of lenders verify that the borrower is employed or has some other source of regular income.
The lenders do not generally consider the borrower's credit score. The loan is secured by the title to the vehicle.
