Q:

What is a title loan?

A:

Quick Answer

A title loan is a loan where collateral in the form of assets is required as a guarantee. As of 2014, a title loan request in the United States does not consider the credit rating of an applicant. Title loans are typically for a low monetary value.

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Full Answer

As of 2014, a title loan application can be done without physical transfer of the collateral that is being used. A proof of ownership, such as a car title, can be used to satisfy the requirements of the loan. The applicant must, however, have clear ownership of the title and not have any liens or ongoing financing on the collateral.

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