Top Reasons to Consider an Auto Title Pawn

Share

Many people may find themselves in need of money to cover some unexpected or emergency expenses but due to poor credit, they may be limited in getting traditional bank financing. Some people in this financial situation may have never considered that they could use their vehicle title for collateral to get the money they need. This article will discuss what a title pawn is and how it works as well as discuss some of the top reasons why an auto title pawn may be a great financing option. (Title Pawn Near Me

What is a Title Pawn? 

First, let’s learn what a title pawn is.  When many people think of pawning something the lender keeps the item while the money is being repaid.  A title pawn however does not mean giving up your vehicle but just the title to your vehicle. 

A title pawn is a type of secured financing that uses your car’s title as collateral. Title pawns are usually short-term funding with high-interest rates, but for some with bad credit, it may be the only option.  Be aware though that if you can’t repay the loan, the lender can repossess your car. 

When you take out a title pawn, the lender will place a lien on your car and give you a title pawn for a portion of its value. The amount you can borrow will depend on the value of your car and your state’s laws. 

How to Get a Title Pawn? 

To get a title pawn, you’ll need to own your car outright and have enough equity in it to cover the amount being borrowed. You’ll also need to have a clear car title in your name. 

You can apply online for a title pawn and depending on the lender could complete the process without going to a lender’s office.  However, there are some situations where you may have to take the vehicle to a lender’s closest location near you to get a quick 5-minute inspection to determine exactly how much you can borrow. 

You will also need to provide proof of residency.  This can be done with a recent bank statement or a recent phone or utility bill with your name and current address listed on it. You will also need to provide proof of income.  Most lenders will require you to have a net income of $1,000 a month.  Proof of income allows the lender to make sure you can repay the title pawn. 

Top Reasons to Consider a Title Pawn 

There are many reasons why an auto title pawn may be the right choice for you. Here are some of the top reasons to consider this type of loan: 

  1. You can get the money you need fast – If you need cash quickly, an auto title loan can be a great option. In most cases, you can get the money you need within 24 hours or less.
  2. You can keep your car – With an auto title pawn, you can keep your car and continue to drive it while you repay the money. This is not the case with traditional bank financing, where your car would be used as collateral and will be held until you repay the title pawn.
  3. There are no credit checks – With an auto title pawn, your credit history is not a factor. This means that even if you have bad credit, you can still qualify for a title pawn.
  4. You can get pre-approved online – Many auto title pawn lenders offer pre-approval online. This means that you can get an idea of how much money you could borrow and what your interest rate would be before you even step foot in a title pawn office. 

If you’re looking for a fast and easy way to get the money you need, an auto title pawn may be the right choice for you. With so many benefits, it’s no wonder that this type of loan is becoming increasingly popular. (Title Pawn Near Me

Title loans are a risky form of borrowing, so make sure you understand the terms and conditions before taking one out. Be sure to shop around and compare rates from multiple lenders to get the best deal. If you default on the loan, the lender can repossess your car and sell it to recoup their losses. That’s why it’s important to only borrow as much as you can afford to repay.

Source