If you’re considering a quick cash solution, you might look into “how to pawn my car title”. Pawning your car title can provide up to $50,000 in cash during times of need.4 It is a way to get emergency funds without selling your car.
Life can throw unexpected expenses at us. From medical bills to urgent home repairs, there are times when we need cash quickly. One option to consider is to pawn a car title. This process allows you to use your car title as collateral to get the money you need in as little as one business day, even if you have bad credit.4
In a Nutshell
Pawning your car title lets you borrow money quickly by leveraging your vehicle, even with bad credit.1 You can keep driving your car, and the loan amount is based on its value. However, high-interest rates and the risk of repossession are significant risks.
What Is Title Pawning?
A car title pawn, better known as a car title loan, is when you use your vehicle as a pledge for a loan. You give the lender your car title, and they give you cash. You even get to keep driving your car while you repay the title loan.
When you pawn a car title, you are essentially taking out a secured loan. The car’s title acts as security for the lender, meaning they have a legal right to repossess the car if you fail to repay the title loan.
A car title pawn is different from a traditional bank loan because it relies on the value of your vehicle and your ability to repay the title loan rather than only your credit score. While most other loans rely on your credit.
How Does Title Pawning Work?
- Find a Lender: Research reputable car title pawn lenders online. Look for reviews and ratings. Compare interest rates and terms from different lenders.
- Submit Application: Submit your application online or in person. They are usually easy to fill out and can be completed in about 15 minutes.2
- Appraisal of Car: The lender will check your car’s condition and value. Some lenders, like us, offer this service online to make it easy for you!
- Sign Agreement: Agree on loan terms, interest rates, fees, and the repayment schedule. Read the contract carefully before signing.
- Receive Cash: Loan funds are typically deposited into your bank account or by check. This process is usually quick, often within a few hours.3
- Repay the Loan: Pay back the loan monthly, once you pay back the entire loan the lender will give back your car title.
Requirements for Pawning a Car Title
- Vehicle Ownership Proof: A lien-free auto title in your name is often preferred. A clear title means there are no liens or other claims against the vehicle.
- Government-Issued Photo ID: Such as a driver’s license or passport. This verifies your identity.
- Proof of Income: Pay Stubs or bank statements. This shows you have a way to repay the loan.
- Proof of Insurance: Your car must be insured. Lenders want to ensure that the vehicle is protected.
Title Pawn Benefits
- Quick Access to Cash: Title loans allow you to get funds quickly, often within a few hours or by the next business day, which is helpful in urgent financial situations.4
- Bad Credit Accepted: Title loans are accessible to individuals with poor or no credit history, as lenders focus on the value of your vehicle and ability to pay back the loan.1
- Keep Driving Your Car: You can continue using your vehicle even while it serves as collateral, allowing you to maintain your daily routines without interruption.
- Flexible Loan Amounts: The amount you can borrow depends on your vehicle’s value, we recommend only taking out the amount you truly need to borrow.
- Short-Term Solution: Car title pawns are typically short-term, making them a viable option for immediate financial needs with a clear plan for repayment.
Risks of Pawning a Car Title
- High-Interest Rates: Can make the loan very expensive. The interest rates for car title pawns can be significantly higher than traditional loans.
- Risk of Repossession: If you don’t repay your monthly payments, the lender can take your car. Repossession can happen quickly, often with little notice.
- Potential for Debt Cycle: High costs can lead to more debt. If you can’t repay the loan, you might be tempted to take out another loan.
Loan Amounts Available Through a Title Pawn
The amount you can borrow through a title pawn depends on the value of your car and the lender’s policies. Generally, lenders offer between 25% and 50% of the vehicle’s appraised value.
For instance, if your car is appraised at $15,000, you could receive a loan ranging from $3,750 to $7,500. The exact amount may vary based on factors such as the car’s age, condition, mileage, and market demand.
Some lenders might offer auto title loans up to a certain maximum limit, but the actual loan amount will depend on your car’s equity and the lender’s criteria.
Alternatives to Title Pawning
Before deciding to pawn a car title, it’s wise to explore other options. Here are a few alternatives to consider:
- Borrowing from Family or Friends
- Personal Loans
- Payday Loans
Conclusion
Responsible borrowing and financial planning are crucial with any loan including when you pawn a car title. Make sure you understand the terms and have a plan to repay the loan.
If you decide to go ahead, contact us for a car title loan. We offer competitive rates and clear terms. Our team is ready to help you with your financial needs. Apply today with no obligations to see how much cash you qualify for!
Frequently Asked Questions
Is It Smart to Use My Car as Collateral for a Loan?
It can be smart to use your car as collateral in emergencies but comes with risks.4 Ensure you can repay the car title loan. Consider your ability to meet the repayment terms before proceeding.
Does a Title Pawn Affect Your Credit?
Yes, if you miss payments, it can negatively affect your credit score. Timely repayment is crucial to avoid damaging your credit.
Can I Take Out a Loan Against My Car?
Yes, a title loan is a way to take out a loan against your car. It can provide cash in your pocket as soon as one business day.2 Make sure you understand the full cost of the loan.
Can I Sell My Car if I Used It as Collateral?
In short, no, you cannot sell your car until you repay the loan and reclaim the title. The lender holds the title until the loan is fully repaid. In some cases you may be able to sell the car but you must pay off the loan or lien on the car before pocketing any of the profits of the sale. Talk to your lender about your options.
Written by
Crystal Voogd