book with title loans explained

Title Loans Explained: The Definition Of Title Loan And 10 Other Terms

Let’s break down title loans with the definition of a title loan and important terms.

What Are Title Loans?

The definition of a title loan is a type of short-term loan that provides quick cash in an emergency and uses your vehicle title as collateral. It is a common myth that you must forfeit your car to receive a loan, but that isn’t true at all.

You can continue using your vehicle and receive $300 to $15,000 with a title loan. Also, perfect credit isn’t required to qualify. Instead, you can apply for a title loan with bad or even non-existent credit.

Additional Loan Terminology To Know

In addition to the definition of a title loan, there are a few key terms you should know when you consider getting a loan. These include online title loans, lien-free title, clear title, credit, good credit, bad credit, collateral, traditional loan, inspection, and loan amortization.

Online Title Loan

An online title loan is the same as a traditional title loan, but you are not required to complete the process in-store. You can apply online and a loan representative can connect with you on the phone or physically.

Lien-Free Title/Clear Title

A vehicle title is a legal certificate that establishes the legal owner of a car. A lien-free car title just means that you own your car outright and there are no outstanding judgments or loans against it. You will often see this term interchanged with the term “clear title”. This is just another term that means lien-free title.


The term credit refers to a person’s credit score. Companies equate a credit score based on factors like your bill-paying history, current unpaid debt, loans you have, new applications for credit cards, and whether you have debt in foreclosure, to name a few.

Good Credit/Bad Credit

Companies use this credit score to predict how likely someone is to pay back a loan on time. These scores are set into categories: such as good and bad credit. Typically, a good credit score is around 670 and above. Bad credit would be considered between 300-629. Anything in between good and bad is considered fair.

title loans explained


Collateral is defined as anything pledged as security for repayment of a loan. If you use your vehicle as collateral for a title loan and do not pay it back, you could lose your car until the loan is paid back in full. Collateral can also include a house or any other property of value.

Traditional Loan

A traditional loan is a loan obtained from a bank. It requires a lot more paperwork and waiting, and relies heavily on credit. A traditional bank loan is rarely as quick, easy, or convenient as a title loan.


Inspection is defined as carefully examining something. When your vehicle is inspected for a title loan, the inspector is looking at the make, model, and condition of the vehicle to access any damage. This will help determine the value of the vehicle and the loan amount you receive.

Loan Amortization

Lenders use loan amortization to calculate how much of your payment will go toward the principal and how much will be put toward interest.

What To Know About Getting Title Loans In Utah

Now that you know the definition of title loan and other related terms, where can you get this type of loan in Utah? Utah Title Loans, Inc. is one of the most convenient loan providers in the area.

No store visit is required when requesting a title loan, making the entire online process quick and easy. All you need are a few documents and a vehicle in your name, and a loan representative can come to you.

If approved, you can get up to $15,000 in a matter of minutes to relieve any financial emergencies you experience.


You will need your driver’s license or state-issued ID, a lien-free title to your vehicle, and your vehicle for inspection.

Application Process

You can apply online or in-store. Simply fill out the online form on our homepage and wait for the nearest loan representative to call you. During the call, you can schedule a time to come in or for someone to come to you.

Present your required documents while the representative inspects your vehicle. If approved, you will receive money that same evening or the next business day.

man getting title loan cash in utah

Get Your Title Loan Today!

After learning the definition of title loan and believe this is an option to consider when dealing with a financial emergency, look no further than Utah Title Loans, Inc. Within minutes of completing the online request form, you will hear from one of our representatives to explain all of your options – including title loans.

Don’t spend any more time worrying about the future – we are waiting to lend you a helping hand 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.