Title Pawns Lenders

The borrower gives the lender his/her automobile title in exchange for a set amount of cash.

• Title loan

• Rent‐to‐own loan

• Pawn loan

• Refund anticipation loan

What is a title pawn lender?

• A financial institution that provides loans using car titles as collateral

• A bank that offers mortgages for home purchases

• A credit union that offers personal loans

• A payday loan company

Which of the following is a characteristic of title pawn loans?

• They have high interest rates

• They are long-term loans

• They require a credit check

• They are backed by real estate

What is typically required to obtain a title pawn loan?

• A car title

• A credit score of 700 or above

• A co-signer

• Proof of employment

What happens if a borrower defaults on a title pawn loan?

• The lender can repossess the car

• The borrower is charged a late fee

• The loan is converted to a personal loan

• The interest rate is increased

Which of the following is a potential risk of using a title pawn lender?

• Losing your vehicle

• Improving your credit score

• Gaining equity in your car

• Reducing your debt

How do title pawn lenders typically determine the loan amount?

• Based on the value of the car

• Based on the borrower's income

• Based on the borrower's credit score

• Based on the borrower's employment history

What is one advantage of using a title pawn lender?

• Quick access to cash

• Low interest rates

• No risk of losing assets

• Improved credit score

Which of the following is NOT a requirement for a title pawn loan?

• A high credit score

• A car title

• Proof of identity

• Proof of residence

What is the typical duration of a title pawn loan?

• 30 days

• 1 year

• 5 years

• 10 years