If you’re ever in need of quick cash and don’t mind giving up your valuables as collateral, then title pawning is for you!
We will give you an affordable car title loan with the lowest monthly payments in exchange for your car title.
It’s that easy!
You can use a title pawn to get emergency cash exactly when unexpected expenses arise.
The great thing is that you can often get cash assistance in as little as 30 minutes!
Title pawns are a convenient way to get a cash loan. No need to ask your bank for a payday loan anymore!
If you ever wondered “How to pawn my car title?” or “What is the loan amount I can get with a title pawn loan?” then you have come to the right place!
Let’s first cover everything you need to know about how to pawn your car title.
How Does Pawning Car Titles Work?
A car title pawn process works in a similar way that any other pawn.
When you pawn your car title you essentially take out a secured loan.
A title pawn is a short-term loan secured by your car title, using your vehicle as collateral.
The title loan lender will hold on to your car title until you repay the loan, at which point they’ll return the title to you.
When you take out a title pawn, you are using your car as collateral for the loan.
This means that if you can’t repay the loan, the lender can repossess your car.
Title pawn loans also tend to have high interest rates and fees, which can make them expensive.
You will have to pay fees and interest on the loan, as well as agree to repay the loan in full within a certain period of time, typically 30 days.
If you don’t repay the loan in full within that time frame, you may be able to “roll over” the loan by paying only the fees due and agreeing to another 30-day term.
However, each time you roll over the loan, you’ll have to pay additional fees, which can add up quickly.
What You Need To Pawn Your Car Title
A car title pawn can be an easy way to get cash fast.
Requirements vary but may include:
- Title pawn application
- Vehicle title
- Vehicle registration number
- Vehicle inspection certificate
- Driver’s license
- Car insurance
- Proof residency
- Proof of income
- Phone number
- Bank account and bank statement
Benefits Of Title Pawn Loans
If you are in need of quick cash and have a vehicle, you may be considering to pawn your car title.
A title pawn is similar to a title loan, but instead of receiving a loan, you receive a cash amount based on the value of your vehicle.
Both loans typically have high interest rates and fees, but they can be a good option if you need cash advances immediately and can’t qualify for traditional loans or if you have bad credit.
There are several benefits to taking out a title pawn loan, including:
- You can get a cash loan quickly
Title loans and pawns are typically processed quickly, so you can get the cash you need fast.
- You get to keep your car
With a title loan, you can keep driving your car while you make payments. With a title pawn, you can redeem your vehicle once you’ve paid off the amount plus interest and fees.
- You can rebuild your credit
Auto title loans and pawns report to credit agencies, so making timely payments can help improve bad credit.
Alternatively, you can also seek credit counseling if you have credit difficulties.
The Risks Of Automobile Title Pawning
When you take out a title loan, also called a title pawn, you use your car as collateral.
The lender gives you a loan based on the value of your vehicle and you have to pay it back with interest. If you don’t make your payments, the lender can repossess your car.
Title loans are expensive and can be risky.
The annual percentage rates (APRs) on title loans are high, and if you can’t repay the loan, you could lose your car. That’s why it’s important to understand the risks before you take out a title loan.
Here are some of the risks to be aware of when you pawn your car title:
- You could lose your car if you can’t repay the loan
If you can’t repay the loan, the lender can take your car title. This is called repossession. Once your car is repossessed, the lender will sell it to try to get their money back. But if they sell it for less than what you owe on the loan, you will still owe them money.
- You could end up paying more in fees and interest than the value of your car
Title loans have high APRs, which means you will end up paying more in interest and fees than the original amount of the loan.
For example, if you take out a $1,000 loan with an APR of 30%, you will owe $1,300 after one year if you make no other changes to your account. That’s $300 in interest and fees!
- Your credit score could drop
Taking out a title loan will likely lower your credit score because it is a new debt that appears on your credit report. And if you miss payments or default on the loan, that will also lower your credit score.
How To Get The Most Out Of A Title Pawn Loan
When you need fast cash, a pawn car title can be a great option. A title pawn is a short-term loan where you use your car title as collateral.
Title pawns are typically for smaller amounts of money and have shorter title pawn terms than traditional loans. This makes them ideal for short term financial solutions.
If you’re considering a title pawn, there are a few things you can do to make sure you get the most out of the experience. Here are four tips:
- Find The Best Deal
Not all title pawn lenders are created equal. It’s important to shop around to find a lender that offers the best terms for your needs.
- Read The Fine Print
Once you’ve found a lender you’re comfortable with, make sure you read and understand the terms of the loan before you sign anything. Pay attention to things like the interest rate, loan term, and any other fees that may be associated with the loan.
- Use Your Car Wisely
Since your car is used as collateral for the loan, it’s important to use it in a smart way. Make sure you keep up with maintenance and keep your insurance up to date in case something happens to your car while it’s being used as collateral for the loan.
- Get Ready To Repay The Loan In Full And On Time
Title loans are typically short-term loans with high interest rates. This means they can be expensive if you don’t repay them in full and on time. Make sure you have a plan in place for how you will repay the loan so that you don’t get caught off guard by an unexpectedly high bill.
How Much Cash Can I Get When I Pawn My Car Title?
The loan amount depends on the value of your vehicle. You can fill out the title pawn application online to find out exactly how much cash you can get.
How To Avoid The Pitfalls Of Title Pawning
When you’re in a financial bind, it can be tempting to turn to a title pawn. But before you do, it’s important to understand the risks.
A title pawn is a short-term loan that uses your car as collateral. If you can’t repay the loan, the lender can repossess your car. You can try to contact the lender directly to solve this issue.
Title pawns are notoriously expensive. The average APR is 300%, and fees can quickly add up. For example, a $1,000 loan with a 35% fee would cost you $1,350 in interest and fees over the course of a year.
And if you miss a payment, the title pawn companies can begin the process of repossession – even if you’re only one day late.
If you are considering an auto title pawn, be sure to shop around and compare rates. And be sure to read the fine print so you understand all the fees and terms associated with the auto pawn loan.
What If You Can’t Repay Your Title Pawn
If you are unable to repay a title pawn, the lender may collect your car.
That’s why it’s important to only borrow as much as you can afford to pay back, so you don’t risk losing your car.
In some cases, you may be able to roll over the loan or take out a new loan to extend the repayment period. You should only consider these options if you are confident that you will be able to repay the new loan.
Before you take out a title pawn, make sure you understand the risks and costs involved as well as how much cash you can get.
You should also be sure that you can afford to repay the loan.
In some states, lenders are required to auction off repossessed cars; in others they can keep them or sell them however they choose.
How To Get More Money Without Title Pawning
Another way of getting extra loan proceeds is refinancing.
In short, title loan refinancing allows you to use the equity in your vehicle for other purposes.
Please keep in mind that you must have equity in your vehicle to qualify for refinancing.
If you owe $5000 on your title pawn loan but your car is worth $10,000 you can apply for refinancing which will grant you a new loan on your vehicle for $10,000.
In this case you can walk out with a few extra thousand in cash after final approval.
How To Make Sure I Don’t Get Ripped Off
There are a few things you can do to make sure you don’t get ripped off when pawning your vehicle’s title.
- Research the company you’re considering doing business with. Make sure they’re reputable and have a good track record.
- Get everything in writing. Read over the agreement carefully and make sure you understand it before you sign anything.
- Don’t be afraid to negotiate. If you don’t like the terms being offered, try to negotiate a better deal.
What Are The Most Common Scams Associated With Title Pawning?
There are a few common scams associated with online loans dealing with pawn loans.
One is that the title loan company may hike the interest rate to be much higher than what is advertised.
Another common scam with pawn title loans is that the terms of the loan may be changed after you have agreed to them, or that the loan may be extended without your knowledge or consent.
The Bottom Line
While it may not be the perfect long term financial solution, if you’re in a bind and need some quick cash, a car title pawn may seem like a good option. But there are some things you should know before you sign on the dotted line.
First of all, it is a type of secured loan. That means that the lender will hold on to your car’s title until you repay the loan. If you don’t repay the loan, the lender can repossess your car according to loan terms.
Title pawning can be expensive. The typical interest rate for a title pawn is 25% per month, which works out to an annual percentage rate (APR) of 300%. That’s much higher than the average APR for a credit card, which is around 15%.
What’s more, the fees associated with title pawning can add up quickly. For example, some lenders may charge an origination fee, a monthly service fee, or both. And if you miss a payment, you may be charged a late fee or have your interest rate increased.
Before you get a title pawn, be sure to consider all of your options. There are other ways to get cash that may be less expensive in the long run, such as taking out a personal loan from a friend or family member or using a credit card with a low interest rate.