14 Dec 2016   /   0 comments

What is a Lien on a Car Title?


A lien can be very generally defined as the legal right that a lender has on a piece of property used as collateral which someone else owns.


TFC Title Loans has countless customers that ask “what is a lien on a car title?” We get asked this so often because they continually hear us talking about putting a lien on their title in order to complete the title loan process. Many people don’t know what that is but we believe it is our responsibility to inform you about every aspect of what we do before you even decide to work with us. Our main goal is for you to come out of this experience with better financial footing than you had before. We make it a priority that you understand how the car title loan process works so that you are able to make an informed decision that will benefit your finances.


Title liens are placed on vehicles for a number of different reasons but the main purposes for which they are used surround loans. Loans that are either for auto financing or using your vehicle as collateral for a personal loan. We, at TFC Title Loans, place a lien on your title for the purpose of using your vehicle as collateral for a personal loan; that is the definition of a title loan. We have been in the title loan industry for 25 years and over that time we have gained the experience necessary to make the lending process as seamless as possible.


Ever since we opened our doors in 1994, we have made our customers the company’s number one priority. Because of this, we have created a wealth of resources so that you can better understand what we do, why we do it, and become more knowledgeable yourself about financial matters to create a bright future for yourself. With our second-to-none customer service, we have been able to draw thousands of customers to obtain title loans through us. If you wish to understand more about liens on car titles, then please continue reading! If you feel that you are ready to get started with a title loan from us, then fill out our simple and quick online application or give us a call today!

What is a Lien on a Car Title

The Lien and the Lienholder

A lien can be very generally defined as the legal right that a lender has on a piece of property which someone else owns. The title of the car that you own is in your name; however, if there is lien on the title, the person or institution who has placed that lien possesses legal rights to that vehicle. This is done so the lender or institution can use your car as collateral to ensure repayment on an auto loan or personal loan like a title loan. To avoid the risk of financial loss, the lender will maintain the lien against the vehicle until the car itself or the personal loan is completely paid off.

Title Loans and Liens

After the application and approval process are through, we will sit down with you to finalize your loan terms. We always customize our loan terms to our customer’s specific and unique life circumstances to ensure they will be able to repay the loan. It is after those papers are signed that we place a lien on your vehicle’s title. We then become the official lienholders and keep your title in our possession until the loan has been fully repaid. You still get to drive away with your car; it is only the title that we keep. Once you have repaid the loan in full, we will sign the title back over to you so as to signify that we have released the lien we placed on your car. We then mail the title back to you unless you prefer to pick it up from us in person. Once you have your vehicle’s title back from us, it will be free and clear with absolutely no lien on it whatsoever.


If you are left with any questions at all concerning liens that are placed on car titles, then please give us a call at 844-242-3543! We are standing by, waiting to assist you in any way you might need. However, if you have decided that you would like to apply for a title loan with us, here at TFC Title Loans, then start the process by filling out our online application located on our secure webpage.

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