There are a lot of misconceptions out there about title pawns. Here are some of the most common myths, and the truth behind them: title pawn near me
Myth #1: Title Pawns Are Expensive
The truth is title pawns can be very affordable. In fact, they often cost less than traditional financing. The key is to shop around and compare rates from different lenders. It is also important to note there are some lenders who will offer a promotional program that allows those who qualify the opportunity to get a 30-day interest-free title pawn. Make sure you check with your title pawn lender to see if you can qualify.
Myth #2: Title Pawns Are Risky
Another myth is that title pawns are risky. This simply isn’t true. If you default on your pawn, the lender can repossess your car, but there are lenders that will offer you the opportunity to extend your title pawn an additional 30-days should you find, you cannot repay within the first 30-day title pawn. They will require that you at least make the minimum payment to qualify for an extension.
Myth #3: Title Pawns Are Only for People with Bad Credit
This myth is also not true. Title pawns are available to people with all types of credit. The key is to find a lender that is willing to work with you. In fact, your credit score does not play a role in qualifying for a title pawn with some lenders because there is no credit check done.
Myth #4: Title Pawns Require You to Own Your Car Outright
Many lenders will require that you own your vehicle outright. This means you must have a free and clear title. There are, however, some lenders who offer 2nd lien title pawns. What does this mean? If you are still paying on your vehicle and you still have some remaining equity in your vehicle you could still qualify for a title pawn without owning your vehicle outright. Not all states allow the lender to do 2nd lien title pawns but there are states that are allowed.
How to Apply for a Title Pawn
Many lenders offer online applications but may require you to bring your vehicle in for inspection to determine the actual pawn value depending on where you are located. Some lenders require those that live in their service area to bring in the vehicle even if they applied online while others will allow you to complete the entire process online if outside the service area.
Whether you have to bring the vehicle in for inspection or not you will need to provide some certain documentation which can vary from lender and lender. That documentation will usually include a clear and free title, vehicle registration or title receipt from your DMV office, proof of residency, and sometimes proof of income (some lenders don’t require proof of income).
Applying for a title pawn is a quick and easy way to get money, but it’s important to understand the risks involved. Make sure you can repay the pawn before you sign over your title, or you could lose your vehicle.
Now that you know the truth about some of the most common title pawn myths, you can make an informed decision about whether a title pawn is right for you. If you need cash fast and have a vehicle in your name with equity value, a title pawn could be a great option for you. title pawn near me