Which type of lender offers very short-term loans using a piece of property you own as collateral?A.Credit unionB.Payday lenderC.BankD.Title lender
Question
Which type of lender offers very short-term loans using a piece of property you own as collateral?
A. Credit union
B. Payday lender
C. Bank
D. Title lender
Solution
To determine which type of lender offers very short-term loans using a piece of property as collateral, let's analyze the options:
-
Credit Union: Typically provide a wide range of financial services, including loans, but are not specifically focused on very short-term loans with property as collateral.
-
Payday Lender: Usually provide fast cash loans but do not generally require collateral, relying instead on the borrower's promise to repay usually by the next payday.
-
Bank: Traditional banks offer loans but typically involve longer terms and larger amounts, and they usually assess creditworthiness thoroughly.
-
Title Lender: Specializes in providing very short-term loans by using the borrower's vehicle title as collateral. They often charge high-interest rates and provide quick access to cash.
Based on this analysis, the correct answer is:
Final Answer
D. Title lender
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