When you need money fast, one option is to get a title pawn. A title pawn is a short-term loan secured by your car’s title. Because the loan is secured by your car, the value of your car affects how much money you can borrow and the terms of the loan. title pawn near me
If you have a newer car with a higher value, you can usually borrow more money and get better terms than if you have an older car with a lower value. That’s because the lender has more to collateralize the loan if your car is worth more.
That being said, you should only borrow an amount that you know you can repay. Defaulting on a title pawn can lead to losing your car, which could put you in a difficult financial situation. Make sure to carefully consider your options before taking out a title pawn.
How to Get a Title Pawn
To get a title pawn, you typically just need to bring in your car and its title. The lender will appraise your car to determine its value and then give you a pawn based on that value. The amount you can borrow, and the terms of the pawn will vary by lender, so it’s important to shop around to find the best deal.
If you have bad credit or no credit, a title pawn can be a good option because the pawn is secured by your car. That means the lender is less concerned about your credit history and is more likely to approve you for a title pawn. Most lenders offer “no credit check” title pawns so no need to worry about your credit score
However, title pawns are an expensive financing option. The interest rates are typically much higher than with traditional financing, so you could end up paying back much more than you borrowed if you don’t repay the pawn quickly.
You also risk losing your car if you can’t repay the pawn. That’s why it’s important to only borrow what you need and to make sure you can repay the pawn on time.
What is Required to Get a Title Pawn?
Unlike traditional bank financing, there are minimum documents required to get a title pawn. This will vary from lender to lender but below are the general items required to qualify for a title pawn.
- Your vehicle for inspection purposes. Although you can apply online if you are located in the lender’s service area you will need the vehicle in for inspection. However, if you are located outside the service area you may be able to complete the entire process online and on the phone.
- A free and clear car title in your name. Most lenders will require a free and clear title in your name, but some lenders may offer a 2nd lien title pawn so if you don’t have a free and clear title, they will just need a vehicle registration in your name to show ownership.
- Proof of Residency. Since title pawns are governed by the different states the lender will need proof of residency. This can be provided by using a current phone or utility bill. Many lenders will also allow you to use a recent bank statement to verify residency.
If you need money fast and have a car with some value, a title pawn could be a good option. Just be sure to shop around for the best deal and only borrow what you can afford to pay back. title pawn near me