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Title Loan Glossary

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Useful Car Title Loan Glossary

Some of the language that you’ll run into when trying to take out a car title loan can be downright confusing!

The following definitions cover typical words you’ll find when taking out an auto title loan. Go ahead and browse through them all or look only at the one you want by selecting the appropriate letter.



Amortization – the calculation used to make your monthly payments equal. It takes into account the loan amount and length, adding on interest accrued to an outstanding.

Amortized Loan – This is the loan you’re paying off, in regular payments that are pretty much equal. The installments include principal and interest.

Use the title loan calculator to look at examples or determine for yourself how much will be required monthly.

Annual Percentage Rate (APR) – Instead of giving you the rates or fees for each month, this is an annual interest rate. The APR lets you know how much interest you’re being charged on your loan for the year.

Auto Equity Loan – An auto equity loan is also known as a car equity loan. This is a type of title loan that exchanges your title for the equity already in your vehicle. You get a cash loan and after you’ve paid it off, you get your car title back from the lender.

Autopal – This is a secure online portal that Montana Capital Car Title Loans provides for you to monitor your loan.

With the Autopal account set up, you can quickly track your loan amount and check its current balance. You can also print out transactions, make your title loan payments online, and get your payoff balance.


Bad Credit Score – A bad credit score is usually the FICO score that is 629 or less. It is used by such sources as the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press).

With a bad credit score, you won’t always get a good credit deal. If approved, you might have to pay higher interest rates.

You can still get a title loan even with a no credit or bad credit score!

Black Book – The Black Book gives the value of vehicles that are new or used.

It’s similar to the Kelly Blue Book, and referred to by dealerships checking the current liquidated value of a vehicle. Dealerships will use it to find out what your vehicle has been selling for recently to get an accurate car liquidation worth value.

Even if your car, van or truck is worth $10,000, its current market value might be much less.

Branches – You can check out the nearest Montana Capital Car Title Loans branch. There are many locations throughout California where you can meet a loan officer to process your loan and get the funding you need. Payments are not made at branches.


Car Details/Condition – When evaluating the title loan value of your car, the model, make, mileage and year are all taken into account.

This is important if you want to use your vehicle as security for an auto title loan. For more information on title loans, see: How Do Title Loans Work.

Car Title – In the US, a car title or pink slip is the legal document for a vehicle that establishes legal ownership. The state Department of Motor Vehicles (or the DMV) issues car titles.

Certificate of Title – A document issued through the Department of Motor Vehicles, proving a vehicle’s ownership. See Car Title.

Clear/Clean Title – After paying off a loan, the bank removes itself from the title. If you paid cash for your car, then there is already a clear title.

If you took out a bank loan to buy the vehicle, you are the registered owner, although your bank would put a lien on its title until you have paid it in full. You must pay off your loan to have a clean title.

Collateral Loans – When using an asset or property as a way to secure a loan, they are called collateral loans. In the case of the borrower stopping to make the loan payments, that lender has the right to confiscate the car.

Using the car as collateral gives security to the lender in case the borrower does not pay off the loan. Usually, loans that are secured by collateral can have lower interest rates compared to unsecured loans.

Creditor – The lender or loan company financing loans.

Credit History – This is an accounting of your past financial history so that lenders can confirm your ability to repay loans.

Creditworthiness – A person’s ability to pay back debts.

Credit Score / Credit Rating – In America, a credit score is based on a detailed evaluation of an individual’s credit history. Credit scores are used to determine the amount of risk in someone’s financial history and the likelihood that they will pay back their bills on time.

Even if you have a bad credit score, you can still apply now. If you meet Montana Capital Car Title Loans’ requirements, which include your credit profile, ability to pay the loan and other credit criteria, you can get approved for a loan.

Credit Scoring System – This system is used to evaluate a person’s creditworthiness, which is according to statistical data and the person’s credit history.

Current Account – A current account means all the required payments are made on time and that the borrower is not falling behind with payments that are due.


Default – If a borrower breaches a credit agreement (probably because of failure to pay according to the contract), the account is said to be in default.

Disclosures – This is all the information given to a customer regarding the history of a vehicle, including damage, repair work or issues with the title.

DMV – The Department of Motor Vehicles, which is located in every US state. The DMV handles tasks including driving permits, personal ID cards, drivers licenses and registrations for vehicles.


Equity – This represents the difference from the value of your assets and the amount of liabilities of items owned.

In terms of vehicles, you can have positive equity in your car if it is worth more than the amount that you owe.

Equity in the Car – In terms of car financing, equity is the difference from the vehicle’s value and what is remaining on the car loan.

For instance, if you have a car worth $10,000 but you still owe $4,000, you have equity left in the value of the vehicle of $6,000.


FICO Score – An amount of credit risk referring to credit score. The most popular kind of credit score is the FICO score, which was developed by FICO. It was once referred to as Fair Isaac Corporation.


GPS Installation Center – When completing the title loan process and the loan payoff, you’ll go to a GPS Center* that we are working with. To find the closest GPS Installation Center to you, look here.

*GPS Centers are Car or Audio Stereo Shops specializing in installing and removing anti-theft devices found in cars.

Grace Period – The amount of time from when a payment is due until the date you will be charged penalty fees. With title loans, interest still accrues during this period.


Hidden Fees – Hidden charges and costs are hard to notice, since they are not always put into the basic cost. We do not have hidden fees.


Installment Loans – An installment loan is the type of loan that has a specific amount of payments that are spread out over time. Different loan types are installment loans that include auto title loans and mortgages.

Interest – Similar to finance charges, interest is how much a lender charges to approve a car title loan to a borrower, which is usually represented as a certain annual percentage rate (APR) or a monthly rate.


Kelley Blue Book – the firm providing the current wholesale and retail amount for vehicles is published through Kelley Blue Book, Inc.


Late Payment – This is a past due title loan payment.

Lien Holder – A person with legal rights to a car’s ownership, in case of defaulting on a legal agreement.

Lenders are usually lien holders, but if you had a car repaired by a mechanic but didn’t pay the fees, a lien could be placed on your title, known as a mechanic’s lien.

Loan Amount – The amount of money the borrower repays, as according to the loan contract. This amount includes the amount of the check received by the customer and additional fees.

Loan Calculator – To calculate their payment estimate, our clients use a car title loan calculator. This tool will also calculate interest rates and the entire repayment schedule.

Disclaimer: Data generated is only based on information that has been given to us by you. The “title loan calculator” and its values are only approximations for illustration purposes. This isn’t part of Montana Capital Car Title Loans regular application process. The amount of payments can be slightly different. The rates we use for our calculations aren’t rate offers or guarantees. These calculations are based on every payment being made when it is due.

Loan Fee & Processing Fee – There are lenders that charge fees for administering and processing all the paperwork.

The fees are usually incorporated into the loan, rather than an “up front” charge that is needed to be paid. This can also be called an Administrative Fee.

Loan to Value Ratio – Often referred to as LTV, the ratio calculates the percentage of the difference between the loan value and a vehicle value.


Market Value – A car’s market value is nearly always less than its retail value, which includes factors such as the amount of mileage, the vehicle’s condition, its service history and any reports of accidents.

When selling your car privately, you would probably be able to get its market value.

MoneyGram – One of the US companies that transfers money is MoneyGram. Loan customers are able to use a MoneyGram location to receive the title loan money from us and to make cash loan payments.

Monthly Payment Amount – The monthly payment schedule we use is one monthly payment. The first loan payment is due 30 days from the loan initiation.


Odometer – The instrument on the car used for tracking the distance that the vehicle travels.

Online Title Loans – Through Montana Capital Car Title Loans, you are able to make use of the Online title loans application, which is an easy process taking only minutes to finish.

You can send an auto title loans inquiry online, so you don’t have to call us and then wait on the telephone. This is how we will be able to evaluate the vehicle you own to check if it qualifies. It also lessens the amount of time you need to wait for completion of the title loan approval process.


Paperless Title – This is the same as an electronic title.

At Montana Capital Car Title Loans, we use a DMV program. This means your title will be saved with the lienholder as an electronic title. After paying off your loan, we will put a release on the electronic lien and you’ll receive the paper title in return.

Pawn Shop Loan – When you take out a pawn shop loan, it means that you give some type of collateral to the pawn shop in return for money. Pawn shop loans are not a service we provide.

Pay Day Advance Loan – This type of cash advance loan, or a pay day loan, is approved after evaluating previous employment and payroll records. Our company does not provide pay day loans.

Payoff – With Montana Capital Car Title Loans, you have the option of paying your loan amount off early.

Without charging any hidden fees or penalties for your prepayment, we’ll send you your car title. Be sure to call us if you want to prepay your loan, so we can quote you the final amount.

Pink Slip – The title that belongs to your vehicle can also be called a pink slip.

Processing Fee – A processing fee is a fee, based on percentages, that will be charged on each auto title loan when it is approved. The amount of our processing fee is $75.

Poor Credit – This means that your credit is below average, also referred to as bad credit.

The term can include repossessions, late payments, foreclosures or even bankruptcy. You can still be approved for an auto title loan if you have poor credit.

Pre-Approval – This is the beginning of the loan process, when the loan agent can sometimes give the customer a loan amount that has been pre-approved.

Prepayment Penalty – Sometimes lenders charge a fee for paying off your loan before the end of the loan date written in the contract. We don’t charge a prepayment penalty.

Principal – The principal is the entire amount you owe with a car title loan, but doesn’t take into account remaining interest that is due.

Proof of Income – Referred to as POI, the type of proof you use can be your bank statement or proof of social security payments. It does not have to be your salary pay stub.

We must have proof that you can pay your title loan before we can approve a request.

Proof of Residency – Oftentimes referred to as POR, this can be utility bills, a lease agreement, your driver’s license or any documentation you have that shows the borrower’s current residence.


Refinancing/ Refinance Your Car – If a borrower needs to get extra money or change the terms of a loan they already have, they can refinance it.

Registration Service Center – Registration Centers* that we do business with offer DMV services and is one of the stops you’ll make when completing the online loan process. You can find the closest Registration Service Center here.

*Typically, Registration Centers are within businesses like insurance agencies, that can provide DMV services as well as others.

Repossess/ Repo – If a client stops repaying an auto title loan with no intention of continuing payments, a repossession can occur. The auto finance company would reclaim the vehicle.

Retail Value – The average selling price of a car is its retail value. This is also the replacement value, in case of theft or accidents.

If your car is a total loss or has simply disappeared, it’s preferable that your car is insured for its retail value.


Salvage Title – This is a type of branding for vehicle titles. It states that this vehicle was once pronounced a total loss through an insurance company’s payment or that it has been damaged. Each state or territory has different criteria for salvaged titles.

Secured Loans – When a borrower promises an asset to use as collateral for a loan, it is a secured loan. To the creditor providing the loan, it is then called a secured debt.

The debt is secured by the collateral. In the case of default, the creditor may take possession of whatever asset w used as collateral, and may resell it to cover the debt.


Term Length – Amount of time that the borrower has to pay off the debt.

Third Party Payoff – Even if there is a lien against your car, we might be able to approve your loan by paying the third party company.[montana_question_noschema question=”Title Loan”]Title Loan – A loan using equity you have in your vehicle to loan you cash.

The borrower can still drive the car, but the lender will keep the title until after the auto equity loan is fully repaid.

Trade-in Value – When you trade your car in to a dealer towards the purchase price of another vehicle, this is the value of your car.

These definitions and terms are with the purpose of providing you a simple and informal meaning for the phrases and words you might come across on our website. Some of these terms might not be known to you.

The term or phrase’s specific meaning depends on how and where it’s used. The documents, with signed agreements, program policy guidelines and customer disclosures actually control the meaning of a term in a specific context.

For the purpose of contracts or any other transactions with our company, the following definitions and terms do not have a binding effect.

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