If you need quick access to cash, pawning your car title may be a good idea. Also known as a title loan, a title pawn is usually easy to get as long as you own your car. Title pawns typically come with easy applications, quick approvals, and less strict credit score requirements. Below, we’ll explore what a title pawn is and how it works so you can decide whether a title pawn is right for your needs.
What is a title pawn?
A title pawn is a secured loan that uses your car as collateral. If you own your car, you can exchange it for a lump sum of cash. Since your car allows the lender to take on less risk, you’ll likely receive a lower interest rate with a title pawn than you might if you took out an unsecured loan.
How pawning your car title works
After you apply for a title pawn, the lender will appraise your vehicle before approving you. If you get approved, the lender will hold onto your car title until you fully repay the title pawn. With a title pawn, the lump sum of cash they’ll give you will be based on the value of your car.
Fortunately, you’ll be able to continue to drive your vehicle while you repay your title pawn. You could get approved for a title pawn right away and may be able to receive your money the same day you apply.
How much money can I get from a title pawn?
With title pawns, borrowers can receive a percentage of their car’s appraised value. The lender will first conduct an appraisal of your vehicle to figure out how much it’s worth. Then, they’ll typically offer you a loan amount worth 25 to 50% of your car’s value.
Benefits of online title pawns
Title pawns offer many benefits, including:
Borrowers can complete a title pawn application online or in store in just a few minutes. You’ll just need some personal and financial details, along with basic information about your car.
Once the title pawn lender appraises your car, they’ll offer you a loan amount based on its value. Once you sign the paperwork, you can receive the funds from your title pawn as quickly as the same day you apply.
Receive a larger loan amount
Since title pawns are secured loans, you can potentially receive a larger amount than you might with an unsecured loan. This is because the collateral makes the loan less risky to the lender, and they can take possession of your car to recoup the loss if you default.
Good credit not needed
Borrowers don’t need good credit to get approved for a title pawn. Many title lenders have less strict credit score requirements and will consider additional factors like income, employment history, current debts, and your car’s value when deciding whether to approve you.
Title pawn repayment terms
With title pawns, you can often pay back your loan plus interest in monthly payments over time. The repayment period for title pawns can range from a few months to a few years, depending on the title pawn lender and loan terms. Some lenders, like Advance America, will allow you to pay back your title pawn early with no prepayment penalties.
Can I get a title pawn online?
Many lenders offer online applications, so you can start the title pawn application process online from the comfort of home. Then, once you submit your online application, the lender may conduct an appraisal of your car and offer you the title pawn in person.
What you'll need to get a title pawn
Here's what you'll need to get a title pawn:
- Government issued ID
- Vehicle and title
- Proof of residence (utility bill)
- Proof of income, vehicle registration and insurance may be required in some states.
How to get a title pawn
If you're interested in getting a title pawn, follow these steps:
1. Gather all necessary information
Get a hold of your car title and do some online research to figure out how much your vehicle may be worth. This will prepare you for the title pawn application process.
2. Fill out an application online or in person
You may be able to apply for a title pawn online or in-person, depending on the lender. You’ll need to share basic details about yourself as well as information about your car, like its make and model.
3. Get your car appraised
The title pawn lender will direct you toward an appraisal location. You’ll bring your vehicle there so that they can determine its value and how much money to lend you.
4. Fill out and sign the loan paperwork
Once you receive an offer, fill out and sign all the documents. Read all paperwork carefully and ask the lender questions in case you need further clarification.
5. Receive your funds
In many cases, you can receive your money from a title pawn that same day, shortly after your car has been appraised and you’ve filled out the loan paperwork. You won’t have to wait weeks or months. Once you get the funds, you can continue driving your vehicle as you repay the title pawn.
Do I need good credit to get a title pawn?
With a title pawn, you don’t need good credit to get approved. Since title pawns are secured, many lenders have less strict credit score requirements. They’ll consider factors in addition to your credit score during the approval decision process, such as income, employment history, and current debts. This means you can still get a title pawn with poor or fair credit.
How quickly can I get a title pawn?
Many title pawn lenders offer instant approval decisions and same-day funding. This means that, if approved for a title pawn, you can receive the funds you need as soon as the same day you apply.
How to decide whether a title pawn is right for you
To decide whether a title pawn is right for you, consider your financial situation and needs. If you own a car and are willing to use its title as collateral, then a title pawn may make sense. This type of loan can also benefit borrowers who need a larger sum of money to cover essential or emergency expenses like rent, an unexpected medical bill, or home improvement.
Advance America offers fast title pawn loans
Advance America offers title pawns that can get you the funds you need quickly. You can apply and get your car appraised at one of our many locations. Best of all, you don’t need good credit to get approved. Visit Advance America today to learn more about our title loans.