Title Pawning: How to Pawn Your Car’s Title

What is Title Pawning and How Does it Work?

Are you searching for quick cash? Title pawning can allow you to borrow against the value of your vehicle and help you get emergency funding!

Do you have a title to a car, truck, or SUV in your name? Can you provide proof of income during your application and are you of legal age? If you answered yes, then you may be able to use your qualifying vehicle’s title in order to secure a loan against your car.

Title pawns and title loans are not the same, although the terms are used interchangeably in some states, such as Georgia. Both loan options allow you to access fast cash by using your car’s 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 are eligible for a title loan, your title lender will not ask you to store your car at a lot during the repayment process. Instead, you are free to drive your car wherever you need to go – as long as you keep up with your payments!

If you decide to pawn your car title with an online title pawn lender, you will typically be able to keep your vehicle during the repayment process as long as you don’t default on your loan. Title pawning can be a fast way to access cash when you’re in a tough financial situation, but it is important to explore all of your options!

What Do I Need to Get a Title Pawn Near Me?

If you are ready to pawn your car’s title, you should make sure that you have the required paperwork on hand in order to obtain loan approval. You don’t need a good credit score to get a title pawn! But you will usually need to submit the following documents when applying for a title pawn with a title pawn lender:

• Evidence of Your Ability to Repay the Loan: If title pawning sounds like the right fit for your financial situation, keep in mind that you will typically need to demonstrate that you can pay the loan back during your application. You may be asked to provide a recent pay stub, bank statement, or another qualifying document to verify your income.
• Proof of Your Age and Identity: You must be able to present a valid, government-issued photo ID when you are applying for a title pawn. A valid driver’s license, permanent resident card, or U.S. passport are commonly accepted documents that can be used to verify your age and identity.

If you are approved to pawn your car’s title, you’ll receive a percentage of your vehicle’s resale value as loan proceeds. With both title pawns and title loans, the value of your vehicle and your income are the primary factors that will impact your eligibility for emergency funding.¹ Your car or truck must have a qualifying amount of positive equity in order for you to get emergency funding!

Other paperwork such as proof of residence or car insurance may be required during your application, but you will not be asked to provide these documents immediately. With online title pawning, the first step is to fill out a short questionnaire and provide a little bit of information about yourself and your car. If you are prequalified and move on to the next step of your application, a title pawn agent will then reach out to you and ask you to submit the required documentation.

Does Title Pawning Affect Your Credit?

It depends! If your lender reports your payment behavior to one or more of the major credit bureaus, then a title pawn has the potential to either positively or negatively impact your credit score. If you receive final approval for a title pawn and your payment behavior is reported, then making timely payments during the repayment period can help boost your credit score. Whether you decide to pawn your car’s title or take out a title loan against your car, it’s important to keep up with your payments and avoid loan default!

What are the Disadvantages of a Title Pawn Lender?

Title pawning can come with a few different advantages, including access to cash if you have poor credit. However, you should understand the potential risks involved with pawning your car’s title. Choosing to work with a pawnshop instead of a title pawn lender means that you may not be able to use your car while you are making payments on your loan. A pawnbroker will typically hold on to your vehicle until you have completely paid off the loan, meaning that you may lose your primary source of transportation!

If you decide to work with a title pawn lender instead of a pawnbroker, keep in mind that failure to repay the loan can result in your vehicle being seized by the lender. If you find yourself pinching pennies during the repayment process and you feel as though you may not be able to pay your loan, reach out to your lender immediately. Through proactive communication, you may be able to work together to find an alternative solution to avoid vehicle repossession.

Consider whether a title pawn will be the best option for you in the long run, not just the short term. 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 online title pawning. If you borrow more than you can afford to pay back, you will likely encounter some trouble during the repayment process.

Pawning Your Car Title Vs. Other Options

If you need emergency cash, it is important to carefully research all of your options to get financial relief. If title pawning is not the right fit for your financial situation, you can try to apply for a personal loan through an online lender or apply in person at a local bank or credit union. However, personal loans tend to have more strict application requirements, so applicants typically need to have stronger credit histories to receive approval for emergency funding.

If you do not have a good credit score, payday loans can be another option to receive fast cash. A payday loan typically ranges from $100 to $500, and the borrower is expected to repay the loan in full as soon as they receive their next paycheck. While payday loans can be quick and convenient, they have short repayment periods and often come with high interest rates and fees.

Title loans can also cater to applicants with poor credit scores! Through ChoiceCash title loans serviced by LoanMart, you can access competitive interest rates and flexible loan terms. Best of all, you can keep driving your car during the repayment process if you stay on top of your title loan payments! If you qualify for a ChoiceCash title loan, you can get your funds in as little as 24 hours and spend your money on any type of personal expense. Ready to apply for title loans online and receive up to $15,000 if you qualify? Complete a short questionnaire online now or call 855-422-7402 to start your application today!