LOS ANGELES, Aug. 17, 2021 /PRNewswire/ -- When people find themselves in a situation where they need some extra cash right away, title pawn also known as title loans may be a good option. Title loans are secured loans that let people who own cars pawn their car titles and receive cash, often within the same day. Plus, the car owner can continue driving their vehicle as they repay the loan. Here's a quick guide to how pawning a title works.
How Do Title Loans Work?
Getting an online title loan involves handing a vehicle's title to a title lender in exchange for a loan. The borrower then gets to drive their vehicle as they pay back their loan. With title loans, borrowers generally don't need a great credit score to get approved, since they're using their car as collateral to secure the loan. Once the borrower pays back the loan, they'll receive the title back and can continue driving their vehicle worry-free.
Items Needed to Pawn a Car Title
Each state may vary slightly in its rules for pawning car titles. However, car owners generally only need a few things to do so:
- A vehicle
- An auto title with the borrower listed as the owner and without liens
- Proof of income — Bank statements, W2s, Social Security documents, etc.
- Government-issued ID — State ID, driver's license, passport, etc.
Additionally, car title lenders may ask borrowers for documents that verify the borrower's address and stable employment.
Pawning a Car Title Online
Today, many car title lenders offer online applications for increased convenience. In addition to the items listed above, the borrower will have to provide information about the car, including:
- Trim level
Pawning a Car Title in Person
If the borrower goes to the car title lender with their documents to apply, the company will have an employee inspect the vehicle and take the make, model, and year into consideration. They may also use the Kelley Blue Book to help determine value and whether the car qualifies for a loan.
Once the employee finishes, they'll provide the borrower with the loan amount and terms. Should the borrower agree, they'll get the cash that day while keeping their vehicle.
Paying Back the Car Title Loan
Many car title loans last for 30 days. If the borrower pays it back on time, plus a monthly fee, they can keep their vehicle. If they can't pay it back, they can sometimes roll over the loan by paying another monthly fee.
Borrowers should be careful about rolling over, though, as they may quickly get stuck paying back the loan for a long time. Before taking out a title loan, they should make sure they can get the funds to pay it back fast.
Pawning a Car Title Offers Quick Cash
Pawning a car title offers a quick way to get a loan when someone needs cash fast. Vehicle owners can apply for a title loan in person or online with just a few pieces of information and can keep driving their car as they pay off the loan. As long as the car owner can pay back the loan reliably, this could be a suitable method for covering cash shortfalls.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
SOURCE Advance America