Car Title Pawn Loan
If you have a bad credit record or score, you will find it interesting to know that there is a way you can get a loan without your credit score being taken into consideration. While most people are quite familiar with how car title loans, most do not actually know how title pawns work. For the purpose of these people, we’ll discuss how this loan works and how they can get it.
Basically, a title pawn loan is one that gives you an opportunity to get cash for emergency purposes while using your car title as your collateral. While your car title is being used as collateral, it is important that you remember that the amount of money that would be granted would be determined by the value of your vehicle or car. A car title pawn is the type of loan that uses your car title as your credit score. While it can be said to be similar to pawning your personal belongings, it is different in a way. Generally, when you visit a pawn shop, you will be asked to give your belonging in exchange for cash. For car title pawn, you will be granted a loan while still in possession of your vehicle.
An auto pawn does not actually require you to give your vehicle up before your loan is approved. Interestingly, it is quite similar to having your items sent to a pawn shop. When you visit a pawn shop, you are given cash in exchange for an item and the item would be released back to you when you have fully paid back the loan. This is similar to an auto pawn in the sense that your loan will be approved when you have offered your car title which will be given back to you when you have completely repaid the loan.
When you opt for the car title loan, you will have to offer the company or lender your car title before your loan is approved. Although, you will continue to be in possession of your vehicle during that period of time.
Why You Need A Title Pawn
Some of the main reasons include;
- Offers you cash in exchange for your car title
- Affords you the opportunity to choose from a number of financing options.
- Gives you cash while allowing you to make use of your vehicle.
- Gives you cash that will offset that bill you’ve been planning to pay off since.
Currently, there a number of companies or lenders in your area that are willing to offer you the loan in exchange for your car title.
Title Pawn; How It Works
When faced with challenges, knowing how a title pawn works will help you get through those moments. We’ll discuss how this loan type works.
To start, there are three main steps that would have to be taken to ensure that you get this loan. The first would be to find a company or lender. While there are a number of these lenders, you will need to find one that suits your need. You will have qualify for a title pawn based on a number of requirements. The third step would be to apply for the loan.
Basic Requirements That Must Be Met To Get Your Title Pawn Approved
While most of the companies or lenders have their specific requirements, the most common requirements are;
- You will have to provide your personal information
- You will need to have a vehicle
- A salvage title is needed
- Your proof of residence is required
- Government ID is required
- Details of your monthly income
- Pictures of your vehicle
- Five references at least.