One of the biggest advantages of being a vehicle owner is the ability to use your available equity and turn it into cash! When you’re stuck in a financial bind, you may be able to use your vehicle’s title to get the emergency funds you need.1
There are two common loan options that will allow you to use your title to get cash:
- Auto Title Pawn Loan
- Car Title Loan
While both options are a way to get fast cash, they have some key differences that could change your loan experience. Before signing a loan or searching for the right title pawn places, consider what the differences are and make the right choice for your finances.
How Do Title Loans Work?
Car title loans can be known by a few different names, including an auto-advance loan or an auto equity loan. Equity is simply the difference between what you owe on the vehicle and what its market value is. The less of a difference there is between the two, the more equity you have to borrow from!
With a title loan, a borrower is allowed to use their vehicle’s title as collateral for the loan. This will allow them to take their vehicle’s available equity and turn it into emergency cash- without the need for a perfect credit score!
A car title loan is a secured loan through collateral. This opens a lot of advantages and makes the approval process more flexible to borrowers from all different kinds of financial situations. For a title loan, you can keep driving your vehicle while you make consistent payments.
A title loan lender will hold onto your vehicle’s title while you are paying off your loan, but the title is returned once the loan is fully paid off. While not all title loans are long-term loans, a ChoiceCash Title Loan can offer longer loan repayment periods if needed.1
How Can Title Pawn Places Get Me Cash?
Title pawn places can offer a similar loan to a title loan, but there are a few key differences. A title pawn is another type of secured loan that can allow you to turn your vehicle’s title into cash, temporarily. You can find title pawn places online, but you may also find them through pawn shops.
Title pawns are short-term loans that often give anywhere from 30 to 90 days to repay. The vehicle will usually stay with the lender until the loan has been paid in full, but some lenders will allow you to drive your vehicle if you make consistent payments.
With a pawn shop, you can pawn your valuables to obtain cash. A title pawn works in a similar way, but you can borrow funds while the lender holds onto your vehicle. The vehicle’s title will be returned to you once the loan has been paid in full.
To obtain a title pawn or a title loan, you will need to provide the following information about your vehicle:
- The Make, Model, and Year
- The Condition of the Car
- The Style of the Car
- The Mileage on the Odometer
This information can help identify the value of your vehicle and it will also determine what your estimated loan amount will be.
What are the Disadvantages of Finding a Title Pawn Place for Funds?
While a title pawn loan can offer a similar experience to a title loan, there are a few significant distinctions that are considered disadvantages to many borrowers.
Consider these disadvantages before applying for a title pawn:
- The Amount of Time to Repay: If you need cash to get back on your feet, you may need longer than 30 days to do so. While some title pawn places will allow you to roll over your loan, this can lead to high interest charges and other fees that can make the repayment process difficult.
- Interest Charges: Many title pawn places are often known for high interest rates. Interest rates are simply the cost of borrowing money, and higher rates can make the repayment process difficult, as it will cost your wallet a lot more in the long run.
- Access to Your Car: While some title pawn places can allow you to keep driving your vehicle, it is not a guarantee. This can often be a disadvantage for many borrowers whose vehicle is their main source of transportation for work. That can be more than an inconvenience to most borrowers.
What are the Advantages of Title Loans?
Title loans can often be a better option for many borrowers. While title pawns do offer quick cash just like title loans, there are a lot of potential inconveniences that can be harmful to your life and your wallet.
Take a look at some of the benefits that a title loan can offer besides just cash:
- Keep Your Keys: With loan options like ChoiceCash Title Loans, borrowers can keep their keys and drive their vehicle like it is business as usual while they repay their loan. However, they will need to keep their loan account in good standing and make on-time payments consistently.
- Payments Start Low and Can Get Even Lower2: ChoiceCash Title Loans also offers borrowers an opportunity to get rewarded! By simply making on-time payments on your title loan, you may find yourself eligible for lower monthly payments and interest rates.2
- High Approval Rates:1 A title loan is secured by collateral, which is the title to the borrower’s vehicle. This allows a borrower to obtain cash based on the value of their car instead of their credit history! As a result of this, title loans have high approval rates and borrowers from all different credit histories and financial backgrounds may be eligible for funding.1
- Fast Cash: Borrowers that qualify through ChoiceCash Title Loans can get their funds in as little as one business day!1 If you’re facing a financial emergency, you need a loan that is streamlined and ready to help.
- More Time to Pay: While a title pawn may only offer 30-90 days for loan repayment, a ChoiceCash Title Loan is different. Borrowers can have longer loan terms and more time to pay if they need it! If you’re trying to get back on your feet, a longer loan term is a better opportunity to fix your financial situation and pay competitive interest rates.
How Much Cash Can I Obtain Through a Title Loan?
When you’ve found yourself in a tough financial spot, a title loan can be the perfect solution for quick cash. But you might be wondering how much you’ll be able to obtain through a title loan.
Your loan amount will depend on a few factors:
- The Equity in Your Car
- Your Income
- The State Your Vehicle is Registered In
Some states have laws that regulate the amount you can receive through an alternative loan such as a title loan, but there is more to your loan amount than that. For a title loan, your loan amount will be based on the value of your car. Your income will also play a role in what you can be offered, as a loan agent will use your income as a reference to see how much you can offered comfortably each month.
The more your vehicle is worth and the higher your income, the likelier it is that your loan amount will be high. Typically, a car title loan can be anywhere between 25%-75% of your vehicle’s value.1
If I Don’t Choose the Title Pawn Places, Where Can I Apply for a Title Loan?
A title pawn may not be the right option for your financial needs or future. If a title loan is the better option to get you the cash you need, applying for one does not need to be a big hassle!
ChoiceCash Title Loans can offer a quick, three-step process for your cash:
- Send in a Loan Inquiry Online, or Over the Phone
- Submit a Few Documents to Verify Your Information and Vehicle
- Get Approved and Get Your Funds1
It can take just a few minutes to see if you qualify for cash!1 Call a loan agent today at (855) 914-2945 to be walked through the inquiry process. Or send in a quick inquiry form through the website today! Qualified borrowers can get the cash they need in as little as 24 hours.1