What is a title loan?
A title loan, also known as a non-purchase auto loan, is a type of loan where the borrower puts up their fully paid off vehicle as collateral for a loan. The lender then places a lien against the vehicle in exchange for the loan. When the loan is paid off, the lien is released, the same as a conventional auto loan. If the borrower defaults on their payments, the lender is liable to repossess the vehicle and sell it to repay the borrowers' outstanding debt. The credit union does not offer these types of loans at this time.