Are you experiencing a financial emergency and are unsure how to get the cash you need? If you own a car without any loans on it, you may consider a car title pawn. Before you do, consider your options. A traditional pawn shop may keep your vehicle in its storage yard until you repay the loan.
However, a title loan lender, like Swift Title Loans, allows you to keep driving your car while you repay the amount owed. We keep the title as collateral, and once you satisfy the loan agreement, you receive the title back.
Since you likely need your car for regular commuting, it’s important to understand how a car title pawn works.
How Do You Pawn a Car Title?
In the truest sense of the word, to pawn a car title, you give up possession of your vehicle in exchange for quick cash. The pawn shop charges high interest rates and holds your car and title as collateral.
However, a car title loan offers a much more attractive alternative while providing quick cash access.
A title loan lender takes your car title in exchange for the funds you need. Car title loans don’t require good credit; they focus on the vehicle’s value and your ability to repay the loan. If you can prove you can afford the monthly payments, you may get the cash you need and still be able to drive your car.
Documents Required for Car Title Pawns
To get approved for auto title loans, you will need the following documents:
- Valid government-issued ID, such as a driver’s license
- Proof of income, such as paystubs or bank statements
- A copy of a lien-free title with you named as owner
- Proof of valid car registration and insurance (if required)
How Much Money Can I Get for a Title Pawn?
How much cash you can get for a title pawn depends on several factors, including:
- Your vehicle’s value, according to the lender
- The monthly payments you can afford
Factors to Consider When Pawning a Car Title
Before pawning your car title, consider these factors:
Your Car Value May Differ from Kelley Blue Book
Many people assume the Kelley Blue Book value is what lenders use for a title loan, but that’s not the case. Each title lender has its own method of valuing a car. The key is to send clear and detailed pictures of your car so they can accurately value your vehicle.
You Can Lose Your Car
The title loan company has the right to repossess your vehicle if you don’t make your payments. Don’t pawn your title for a loan you cannot afford.
You’ll Pay Interest
The interest rates on car title loans are pretty high, sometimes over 100%. Only consider a title pawn if you have exhausted all other options, as it will greatly increase the cost of borrowing the funds.
Pros and Cons of Title Pawns
Title pawns have advantages and disadvantages to consider:
Pros
- You can get cash fast
- You keep driving your car
- You can have bad credit
Cons
- You risk losing your car
- The interest and fees are high
Where Can I Pawn My Car Title?
If you wonder, “Where can I pawn my car title?” you can do a quick Google search to find pawn shops near you. However, if you want to keep driving your car, you may consider a title loan company that keeps your title as collateral but lets you keep your car.
At Swift Title Loans, we offer same-day funding on title loans using just a car’s title; we don’t keep your vehicle. With the right documents, you can get funded quickly and satisfy your financial emergency.
FAQ
Does a Title Pawn Affect Your Credit?
Title pawns do not affect your credit. However, if the pawn shop sells your vehicle because you fell behind on your loan, it may show up on your credit report and hurt your credit scores.
Is it Smart to Use My Car as Collateral for a Loan?
It’s best to use a car as collateral as a last resort. Try exhausting other options, such as borrowing from friends or family or taking a cash advance on a credit card. If you don’t have any other options, you can use your car for a secured loan, but ensure you can afford the payments to avoid losing your car.
Can I Sell My Car if I Use it for Collateral?
If you put your car up as collateral on a title loan, you cannot sell it until you repay it in full. The lender will put a lien on the title until you repay what you borrowed.
Final Thoughts
A car title pawn is one way to get cash fast, but a title loan is a better option. Both require you to use your car as collateral, but a title pawn doesn’t allow the use of your vehicle while you repay the loan. A title loan offers a longer repayment period and the use of your car.
Apply online today for a title loan to see if you qualify and on what terms. There’s no obligation to accept the loan; it doesn’t affect your credit to see what you can get.
