Glossary

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Glossary - Title Loan Terms and Definitions

Prepayment Pentalty
This is a fee that some, not all, lenders charge if you pay off the loan prior to the date you said you would when you took out your loan.
Rollover
This term is used when you are at the last few months of your loan and you need another car title loan. The last few payments are rolled over to the new loan.
Pink Slip
This is another term for the title to your vehicle.
Clear Title
If you purchased your vehicle for cash, then you have a clear title. If you purchased your vehicle and had a bank finance your loan, then you would be the registered owner but the bank would place a lien on the title until it is paid off as their security for you paying on the loan.
To have a clear title, you would have to have paid off the loan and have this bank removed from your title. If they still appear on the title but you have paid it off, you can get a release of the lien from the bank via a letter or they may sign on the title itself. This is considered a clear title.
Lien Holder
Someone who legally has the full right to the ownership of the car should you default on a contract that you may have with them. Lenders are typically a lien holder however you could also get a lien on your title if it has been repaired and you have not paid the shop. This is called a mechanics lien.
Refinance Your Car
This is another term used for a car title loan. You may also see installment loan used for this purpose.
Kelly Blue Book
Kelly is a company that provides the current retail and wholesale value of a vehicle.
Black Book
Like the Kelly Blue Book, this is used more by dealerships when they need to know what the current sales price should be and is used to indicate what the exact same vehicle you have has sold for recently. Your car may be worth $10,000 but if the current sales on the vehicle is thousands less than this will be reflected in Black Book.
Loan Fee & Processing Fee
Some lenders charge a fee for administration and processing the paperwork. This fee is usually incorporated in the loan and not an "up front" fee you have to pay to get your money.
Credit Rating
A credit rating tells a lender or investor the probability of the subject being able to pay back a loan.
Title
A vehicle title (also known as a car title) is a legal form, establishing a person or business as the legal owner of a vehicle.
Auto Pawn
An auto pawn is where you leave your vehicle with the car title loan dealer and it is returned when you pay off the loan.
Pawn Shop Loan
A pawn shop loan is a loan given based on collateral that is given up to the pawn shop.
Pay Day Advance Loan
A pay day loan, or cash advance loan, is a loan given based on previous payroll and employment records.