Clarissa and Carlos are homeowners who have decided to purchase a piece of land adjacent to their home. The land is for sale for $10,000.Which loan would require them to use their vehicle as collateral?

A title loan is secured by the title to a vehicle, so Clarissa and Carlos would use their vehicle as collateral. Payday loans are generally based on expected income, while merchant and peer-to-peer loans do not specifically require a vehicle as collateral. The correct choice is title loan.

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