How Do Title Pawns Work?

In some states, like Georgia, the terms title loans and title pawns are often used interchangeably, but they are not the same. Similar to car title loans, a title pawn allows you to secure funding by using your car title as collateral for the loan. If you choose to pawn your car title at a pawnshop, your vehicle is usually kept at the pawnbroker’s storage yard until you pay the loan in full. If you qualify for a title loan, your car is not stored with the title lender, and you can continue to drive it during the repayment process.1

You can pawn your car title at a pawnshop or pawn your car title online with a title pawn lender. To qualify for a car title pawn, you must be at least 18 years old, have a vehicle title in your name, and be able to provide proof of income and address. You may be instructed to bring your vehicle to a title pawn location in order to complete a vehicle inspection and the remainder of your application.

The application process for title pawns can vary from lender to lender, but overall it is typically convenient and quick. If you pawn your car title with an online title pawn lender, you can still drive your vehicle during the repayment process as long as you’re on time with your payments! Continue reading to learn more about car title pawns and factors you must consider before submitting your application.

Do I Need Good Credit to Pawn My Car Title?

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Generally, you will need a strong credit history to obtain approval for a traditional bank loan. Inflation is rising in America, and 78% of Americans are reported to live paycheck to paycheck. It is easy to let your credit score slip if you can barely make ends meet every month. 

You don’t need a perfect credit score to pawn your car title or qualify for a car title loan. Since the loan is secured by your vehicle, your credit history is not the focus of the application process, although it is still an aspect that is considered by the lender. Instead, with both title pawns and title loans, the focus of the loan application is primarily centered on the following factors:1

  • The Value of Your Vehicle
  • Your Income and Ability to Repay the Loan

Choosing the Right Title Pawn Provider

The process to find a title pawn provider is understandably overwhelming. Armed with the right information, however, finding the right loan can be a breeze. The first and perhaps most important step of this process is to search for providers on websites like the Better Business Bureau and Trustpilot. Both of these websites have unbiased reviews from customers, allowing you to compare providers and make an informed decision when pawning your car title.

Another factor to consider about a title pawn lender is the loan terms they can offer a qualified borrower. This includes your interest rate, any fees, and the amount of time you have to repay the loan. Different lenders can offer different terms, so it is important to pay attention to your loan contract and discuss your terms before you pawn your car title.

Make sure to consider these factors when choosing a title pawn provider to ensure that your borrowing experience is as smooth as possible!

Are There Any Alternatives to a Title Pawn?

Not sure which financial route to take? If you need emergency cash, it’s in your best interest to explore your available loan options to see which one works best for you:

  • Payday Loans: A payday loan typically ranges from $100 to $500, and a borrower is expected to repay the loan in full as soon as they receive their next paycheck. Payday loans are often used by people stuck in a temporary financial crisis who need access to fast cash. However, a payday loan typically comes with high interest rates and fees, so you may want to think twice before you submit an application.
  • Personal Loans: If you need emergency cash, you can apply for a personal loan through a bank, credit union, or online lender. With a personal loan, lenders predominantly use your credit history and income to determine your eligibility and loan amount. If you don’t have a good credit score and a steady source of income, it will be difficult to qualify for this unsecured loan option.
  • Car Title Loans: As mentioned above, a title loan is a secured loan that allows you to pledge your vehicle title as collateral for funding. Even though your car’s title is used to secure the loan, you will be allowed to drive your car while paying off your loan. Title loans are an option to consider when you have bad credit and are short on cash. With a ChoiceCash title loan serviced by LoanMart, qualified borrowers can access competitive interest rates, no hidden fees, and a fast application process.1

Using a Title Pawn Responsibly

online title pawns

If you’re still considering applying for a title pawn, it is important to be a responsible borrower and fully understand the risks involved with pawning your car title. Choosing to work with a pawnshop instead of a title pawn lender means that you may not be able to maintain access to your vehicle throughout the duration of your loan. A pawnbroker may decide to hold onto your vehicle until you have completely repaid the loan, so that is a huge disadvantage if you rely on your car for daily transportation. 

Additionally, failure to repay the loan can result in the title pawn lender repossessing your car. Avoiding that potential consequence is possible if you make consistent, on-time loan payments! Before you apply for a title pawn, consider the pros and cons. One of your priorities should be asking a lender any questions you may have about title pawns to ensure that you are making a fully informed decision. After receiving the necessary details about getting title pawns in your state, you can decide whether this loan option suits your current financial situation and aligns with your goals. Consider whether a title pawn will be the best option for you in the long run, not just the short-term. 

Managing your finances effectively while paying off a title pawn is essential. In order to manage your money effectively during the repayment process, you should create a budget and include your loan payments and other crucial expenses. Make your title pawn payment a priority, and contact your lender if you are struggling financially. Here are some tips you can use to be responsible and stay on top of your title pawn payments:

  • Set Up Automatic Payments from Your Bank Account to Avoid Late Fees
  • Pay More Than the Minimum Amount When You Can
  • Make a Note on Your Calendar to Avoid Missing Due Dates
  • Don’t Take on Additional Debt When Repaying an Online Title Pawn

By using a title pawn responsibly, you can try to avoid any potential consequences. With all this information in mind, it is still smart to thoroughly assess your financial situation before applying for auto title pawns. If you borrow more than you can afford to pay back, you will have some trouble along the way.

Where Can I Pawn My Car Title Near Me?

Looking to get a title pawn near you? Simply visit a storefront location to pawn your car title in person or begin applying for a title pawn online with a title pawn lender. Keep in mind that a physical vehicle inspection may be required to determine the value of your car and its overall condition. This requirement can be inconvenient if the lender requires the inspection to be conducted in person.

Instead of applying for a title pawn, you can apply for a ChoiceCash title loan online and easily access a virtual inspection along with a flexible application process. You don’t need to drive anywhere to apply for a title loan and access the fast financial help you need to get back on your feet.

With ChoiceCash title loans serviced by LoanMart, applying for funding online and finding out if you’re pre-approved for a loan can be fast! Eligible applicants can choose direct deposit to get their loan proceeds in as little as one business day. Submit a brief questionnaire online or dial 855-422-7402 to speak with a title loan agent and apply for the fast money you need.1

Frequently Asked Questions

What are the Requirements for a Title Pawn?

Typically, the required items to get a title pawn are:

  • Be 18 Years of Age or Older
  • Have a Title to a Vehicle in Your Name
  • Be Able to Provide Proof of Income, Residence, and Government-Issued Identification

There may be additional requirements to get a title pawn, but those are the main ones to be aware of.

What are the Benefits of Title Pawns?

Title pawns can provide qualified borrowers with fast access to funding, which is one of their most valuable features. Additionally, you do not need a strong credit score to qualify!

Can You Pawn a Car Title Without Insurance?

Yes, you can potentially apply for a title pawn without insurance as long as you can find a lender that does not require it and is willing to work with you.

Can You Pawn a Car Title Without the Car?

Typically, you will not be able to pawn a car title without showing the car. A vehicle inspection is a part of the title pawn application process to verify your car’s value. You will need to drive your car to a location for a physical inspection or submit photos of it online during your application.

How Can I Apply for a Title Pawn Near Me?

You can apply for a title pawn online or in person! There may be some title pawn lenders with storefront locations in your area, so you can apply in person if you want to.

Sebastían S.
Sebastían S.
Sebastían S. is a graduate of Texas State University and a contributing member of the ChoiceCash content team with over two years of experience in the financial services industry. As a proficient digital content writer, his writing style combines transparency and expertise in order to make complex financial topics accessible to a wide audience. Whether the topic is about title loans, debt management, or budgeting, Sebastian's objective is to provide readers with accurate and relevant information that is easily understood. Find him on Linkedin.