When you need money to pay off an emergency debt quickly, you might look for different financial options available to you to help cover the cost. Within your search, you may have considered using your vehicle to get a loan through a pawn shop. While it may have its benefits, it might be essential to consider other loan options that can favor you better. A title loan may be the best alternative financial resource to retrieve the funds you need, as you may see that getting it through a pawn shop could have some disadvantages.
Otherwise known as auto title pawn loans, they offer the chance for you to use your vehicle’s title as collateral. Although an auto title loan does the same, it may have some key differences that could greatly benefit your loan experience compared with a title pawn loan.¹ If you’re still considering choosing to pawn your car title as your primary source of funding, take a look at the differences between both before you decide which is the most convenient for you.
With loan options like ChoiceCash Title Loans, you could inquire about a title loan with a quick, easy, and flexible approval process.¹ Even with bad credit or no credit, you may still qualify for a loan by using your car’s title and proof of income.¹ After being approved for a title loan, you could get your money in as little as one business day!¹
Before I Decide to Pawn My Car Title, How Does a Title Loan Work?
A car title loan and an auto title pawn loan are similar, and they are both secured loans that use your vehicle’s title as collateral to give you the money you need.1 But there are some differences to look out for that could affect your loan experience. A title loan allows borrowers to access their car’s available equity and turn it into cash. If there’s enough positive equity in your vehicle, it could qualify for a title loan.¹ You can always use ChoiceCash Title Loans’ online calculator tool to get an estimate of your vehicle’s available equity if you do not know it already. To use the device, you must input some details about your car:
- The Year of the Vehicle
- The Make, Model, and Style of the Vehicle
- The Current Mileage on the Vehicle
- The Current Condition of the Vehicle
- Any Modifications to the Vehicle
To be eligible for a car title loan, you need to meet these two main requirements initially: your car’s title is in your name and your ability to repay the loan.¹ This means that even if you don’t have a strong credit history, you could still qualify for a title loan.¹ These requirements make it flexible for almost anyone to inquire about a title loan and get approved for funding if they have a qualifying vehicle.¹ If these requirements are met, it can be easier than you think to qualify for the cash you need. It’s important to note that the title of your car must be in your name to qualify.¹ Although you are using the title of your vehicle to secure the cash, the vehicle will remain with you throughout the entire process as long as you are on time with your monthly payments.¹
The loan amount you’d receive is dependent on the available equity from the vehicle you use as collateral and your level of income.¹ The higher the value of your car, the more funding you could potentially receive¹. You may be able to get more money through a car title loan if your income can support a large payment.¹ With loan options like ChoiceCash Title Loans, you could choose loan terms that are convenient for what you can afford, and the approval process is streamlined.¹
Does this sound like an option you would benefit significantly from? Take advantage of a quick and flexible approval process with ChoiceCash Title Loans serviced by LoanMart today!¹ Go online or speak with a representative from ChoiceCash Title Loans at 855-277-4847 to get started!
What Happens When I Pawn My Auto Title?
There’s some information you should know about auto title pawn loans before making a final decision on pawning your car title. An auto title pawn loan can offer a similar loan to a car title loan, but there are some significant differences to consider. You can use your vehicle’s title to turn it into cash with an auto title pawn loan, but only for a limited time. Auto title pawn loans are usually short-term loans that can often give an individual 30 to 90 days to repay the loan in full. This can be inconvenient if you need time to make your monthly installments and get back on your feet. With loan options like ChoiceCash Title Loans, you may have the opportunity to find a flexible loan term that is convenient for you.¹
You can borrow money using your vehicle’s title through pawn shops or online lenders that offer this loan type. However, some lenders that work with auto title pawn loans might ask to keep your car during the loan duration. So if your car is your primary source of transportation, this wouldn’t be a good option to have. With a title loan like ChoiceCash Title Loans, you can drive your car and keep it wherever you go!¹
The amount that you would receive from an auto title pawn loan depends on the vehicle’s used condition and value. If your car were to be sold on the market, you would receive a portion of the car’s used value.
Pawning your car’s title can also be a risk, and it may break your wallet. Auto title pawn loans are known for their excessively high-interest rates, which can be costly for somebody when they borrow money. While both loan options might ask to do a vehicle inspection, you would most likely have to drive your car to a physical location to obtain a title pawn loan, whereas you can do the entire inspection online with a title loan like ChoiceCash Title Loans.¹ With loan options ChoiceCash Title Loans, you simply answer a few questions and submit clear pictures of the vehicle’s front, back, and sides, as well as pictures of its odometer reading and the Vehicle Identification Number (VIN#).
While an auto title pawn loan can have its benefits, it might not be the best option for you. If you’re in a situation where you urgently need money to pay off an unexpected bill or expense, a title loan can be more beneficial and convenient than an auto title pawn loan would.¹ Take advantage of a flexible and quick approval process with ChoiceCash Title Loans today!¹
Is There a Downside to Pawning My Car Title?
You may have seen some negatives when you pawn a car title to receive instant money in comparison to auto title loans. Unfortunately, there are more downsides to look out for when choosing this loan option.
Consider the following consequences before deciding to get an auto title pawn loan:
- The Amount of Time to Repay the Loan: If you are in a financial situation where you need to borrow money, the chances are that you may need as much time as possible to complete your payments. With an auto title pawn loan, many people would get a short-term loan for up to 30 days or so to repay the entire loan. When it becomes challenging to make your monthly installments, some auto title pawn lenders could allow you to rollover your loan. But be aware that if you decide to roll over, the cost of the loan could double from its original amount. Although the same rates and fees could apply when you roll over the loan, you could end up with high-interest charges and other fees, such as a rollover fee, that could leave you in a cycle of debt.
- High-Interest Rates: Pawning an auto title can come at a high cost. With short-term loans, the interest rate from them can be expensive. When you borrow money from an auto title pawn lender, the repayment process becomes excruciating because the interest rates are so high.
- Access to Your Vehicle: Some lenders let you keep your car during the repayment period, but it’s a fact that with many lenders, your vehicle would have to remain with them until you have paid off the loan. It can be inconvenient when your car is your primary source of transportation, and you do not own other vehicles. You will be spending a lot of money if you need to travel to work or schedule a time with people to help you buy groceries. When you inquire about a title loan, you may keep your car with you as long as you’re on time with the monthly payments.¹
The intent of getting an auto title pawn loan to pay off an expense. But that can become a hassle when you have these disadvantages holding you down. With loan options like ChoiceCash Title Loans, the repayment process can often be much more flexible and convenient for you.¹ If you have any questions regarding the approval process for a title loan, let the experts from ChoiceCash Title Loans break it down for you.
Is it Better to Inquire About a Title Loan Than to Pawn My Car’s Title?
Now that you’ve seen why pawning your auto title may not be the best option to borrow money from, you’re probably wondering how a title loan can benefit you. When you inquire about a title loan with ChoiceCash Title Loans, you can take advantage of multiple benefits to enhance your loan experience.¹
Take a look at some of the perks you can take advantage of¹:
- Payments May Decrease²: With ChoiceCash Title Loans, you could get rewarded for being responsible with your monthly installments!² When you’re making on-time payments consistenly, your monthly payments and interest rates may decrease.²
- Quick Funding¹: You could receive fast cash in as little as 24 hours when inquiring about a title loan with ChoiceCash Title Loans!¹
- More Time to Pay¹: While auto title pawn loans are usually short-term loans, you could get a longer loan term that gives you more time to pay off your loan conveniently with a title loan.¹ If you’re worried about not having enough time, loan agents will work with you to make your repayment process as hassle-free as they can.¹
- High Approval Rates¹: Since title loans are secured by collateral, that means people from different credit histories and financial backgrounds could be eligible for a loan.¹ The collateral, in this case, is your vehicle’s title, not your credit history, which allows title loans to have high approval rates.¹
- No Hidden Fees: Most loan options stun people with unexpected fees that could break their wallets. With loan options like ChoiceCash Title Loans, you would not have to worry about hidden fees or balloon payments. You also have the freedom to pay a loan early without any penalties to do so.
- Keep Your Vehicle: Getting a title loan shouldn’t mean you would have to lose access to your car. During the duration of the repayment period, you can keep your car and drive it as you normally would! However, you must be on time with your monthly payments and have your loan account in good standing to continue driving with your car.
How Can I Inquire About a Title Loan Online?
You may have thought about questions like- “where can I pawn my car title?” But after this article, that question may be a thing of the past. After deciding that a title loan might be better than pawning your car’s title, are you ready to get the fast cash you need through a quick and flexible approval process?¹ With loan options like ChoiceCash Title Loans, you could inquire about a title loan in just three simple steps¹:
- Submit a Short Inquiry Form Online, Or Call a Loan Agent at 855-277-4847.
- Submit a Few Required Documents Online to Verify Your Information:
- Proof of Income
- The Title of Your Vehicle
- Proof of Address
- Photo ID
- Recent Pictures of Your Car
- A Few References
- Find Out if You Qualify for Cash!¹
It takes no time to get started on your title loan and get the money you need now!¹