When you’re in need of extra cash, you may come across terms like “secured loan” and “title loan”—and they can sound similar. In reality, these two types of loans are very different, especially when it comes to risk, flexibility, and how they impact your financial future. At LPI Loans, we often get questions about whether we offer title loans. The answer? Not exactly—and that difference matters. Let’s break it down.
What Is a Secured Loan?
A secured loan is supported by collateral, meaning the lender has the right to take that asset if the loan goes unpaid. This collateral might be household goods like electronics or furniture, or it might be the title to a vehicle.
At LPI Loans, we do offer secured loans, and for loans over $1,500, that often includes using a vehicle title as collateral. But this is not the same as a traditional title loan. Here’s why:
- You keep your vehicle. Even if your loan is secured with your vehicle title, you still drive and use your car every day.
- Rates are fair and tiered. Our rates are based on how much you borrow—not on whether your loan is secured with a vehicle title or household goods.
- Terms are flexible. Whether your loan is secured or unsecured, we work with you to choose a repayment plan that aligns with your budget.
- You’re building credit. Every on-time payment with us helps strengthen your credit history.
What Is a Title Loan?
A title loan, as commonly known, is typically a short-term, high-interest loan where the borrower hands over their car title—and sometimes even a spare key—to the lender.
These loans can come with serious risks:
- Very high interest rates and fees.
- Short repayment periods, usually 30 days or less.
- Risk of losing your vehicle, quickly, if you can’t repay it on time.
- Often no credit reporting, meaning your responsible payments don’t help your credit.
While LPI Loans does hold titles as collateral on some secured loans, we are a regulated consumer finance company—not a payday or title lender. Our focus is on helping you move forward, not trapping you in a cycle of debt.
Why the Confusion?
Because both types of loans use collateral and may involve a vehicle title, it’s easy to confuse them. But the experience, expectations, and outcomes are drastically different.
If you’ve been hesitant to ask about a loan because you’re worried it might be a title loan—rest assured. At LPI Loans, we’re here to help you understand your options and choose what’s best for your financial journey.
Still Have Questions?
We’re happy to talk it through! Visit your nearest LPI Loans office or give us a call. Our friendly, experienced staff will walk you through the process and help you make a decision that works for you.
Because at LPI Loans, it’s never about trapping you – it’s about helping you move forward.
