A book and glasses show how to study important title loan terms and definitions.

The Ultimate Glossary Of Important Title Loan Terms & Definitions

If you’re considering a title loan in the future, you may be confused by new title loan terminology and wonder how it applies to you. Learning more about the definition of title loan can help you make the best decision for your financial future.

Our guide will help you understand the essential terminology involved in the title loan process so you can feel confident before applying.

Essential Title Loan Terms And Definitions

Title Loan

The definition of title loan is it's a type of loan that relies on the title of your car. Your car’s value secures the loan, which the lender will hold onto during the repayment period. However, you can still use your car as usual during this time.

In contrast to other loans, title loans generally offer larger borrowing amounts and longer repayment periods.


Your credit, or credit score, is a measure of how likely you are to repay your debts on time, if at all. A high credit score represents your trustworthiness to a lender and makes you much more likely to get your application approved.

On the other hand, poor credit may negatively affect your chances. However, a title loan for poor credit holders is still a real possibility for many borrowers.


Your eligibility measures whether you can qualify for a title loan. For example, if you have the following required items, you may be eligible for a title loan:

  • Your driver’s license or valid state-issued ID
  • A lien-free car title
  • The vehicle itself for inspection

Additionally, your eligibility depends on other factors that may affect whether you get approved, how much you qualify for, and what terms the loan will require. Check with your direct lender to learn more about these additional factors. 

A stack of books reflects studying important title loan terms & definitions.


You’ve probably heard the term lien-free tossed around in the world of title loans, and it’s a lot simpler than it sounds. Lien-free means your car has no outstanding debts or judgments against it that could diminish its value.

The title of your car is the most important part of a loan since it’s the lender’s security, allowing them to safeguard the loan if a borrower defaults.

Secured vs Unsecured

Understanding the difference between a secured and an unsecured loan can help you choose the best loan for you.

A secured loan uses some form of collateral (in this case, the title of your car) to protect the lender’s interests, allowing them to offer larger amounts of money more feasibly in a loan. A title loan is a type of secured loan requiring the title of your car to be squeaky clean (lien-free and in your name) to get a loan.

On the other hand, an unsecured loan requires no collateral, which can be preferable if you don’t have an asset to protect the loan.

Learning title loan terminology like secured vs. unsecured loans can make the difference in getting the emergency cash you need.

Loan Term

The loan term reflects the time to repay your loan in full. Title loans usually have longer loan terms (2-3 years), although this can vary by lender.

Understanding your loan term is an important step in planning to repay your loan; moreover, you’ll want to break down your loan term into monthly payments so you stay consistent with your obligations while the loan is being repaid. Don’t be afraid to ask your lender if you have any questions regarding your loan term.

Applying With Delaware Title Loans, Inc.

Now that you feel confident with title loan terminology, you can apply for a title loan with Delaware Title Loans, Inc. Depending on your eligibility, you can get anywhere from $300 to $15,000.

After you complete our online inquiry form, a representative will contact you to explain the process and arrange a convenient location to meet. You’ll bring the following to your meeting:

  1. Driver’s License or State Issued I.D.
  2. Lien-Free Title to Your Vehicle
  3. Your Vehicle for Inspection

A black man smiles after learning the definition of title loan.

Once there, the representative will inspect your vehicle, verify your documents, and check the VIN on the car. After assessing everything, they’ll let you know whether you’re eligible for a title loan. If you qualify, you’ll receive the money you need the same day or the next business day.

Apply Online Today!

After learning about the definition of title loan and title loan terminology, you can decide if you want to leverage the value of your car title to get a secured loan.

If you have major repairs or expensive medical bills, then a title loan is a valuable resource you can take advantage of. To get started, fill out the Delaware Title Loans, Inc. online form today! We’re here for you.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.