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  2. How do title loans work, and are they ever worth the risk? - AOL

    www.aol.com/finance/title-loans-ever-worth-risk...

    A car title loan, or “pink slip loan,” allows you to borrow anywhere from 25 percent to 50 percent of the value of your vehicle in exchange for giving the lender the title to your vehicle as ...

  3. Asset-backed security - Wikipedia

    en.wikipedia.org/wiki/Asset-backed_security

    The second-largest subsector in the ABS market is auto loans. Auto finance companies issue securities backed by underlying pools of auto-related loans. Auto ABS are classified into three categories: prime, nonprime, and subprime: Prime auto ABS are collaterized by loans made to borrowers with strong credit histories.

  4. 5 debts to prioritize paying off before retirement - AOL

    www.aol.com/finance/debts-to-pay-off-retirement...

    3. Auto loans. After personal loans, focus on paying off auto loans next if it makes sense. The average car loan rate is 8.40% for five-year terms and 8.76% for six-year terms, with the average ...

  5. Can You Buy a Car with Bad Credit? - AOL

    www.aol.com/buy-car-bad-credit-214400888.html

    This is because auto lenders are taking on more risk by offering individuals with low credit scores a loan. To make it worth their while, they often require higher interest rates on monthly payments.

  6. Title loan - Wikipedia

    en.wikipedia.org/wiki/Title_loan

    A title loan (also known as a car title loan) is a type of secured loan where borrowers can use their vehicle title as collateral. [1] Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount. [2]

  7. Predatory lending - Wikipedia

    en.wikipedia.org/wiki/Predatory_lending

    Risk-based pricing: The basic idea is that borrowers who are thought of as more likely to default on their loans should pay higher interest rates and finance charges to compensate lenders for the increased risk. In essence, high returns motivate lenders to lend to a group they might not otherwise lend to – "subprime" or risky borrowers.

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