As much as there are many similarities between a title loan and a title pawn, there are also major differences that show that they are not always the same.
Understanding what these two terms means and what differences or variations they possess can go a long way in helping you make the right decisions when you need to go for either of the two.
It helps you understand the options available.
What is a Title Pawn?
Title pawn involves using your car title as collateral to secure a loan. It does not involve any serious credit checks as your title is the collateral used in getting the loan and the title may be considered as your credit. Hence, the best option, if you are willing to part with your car title, is a title pawn.
A title loan is a means of borrowing that allows you to use your car title as collateral just as you have for a title pawn.
However, you do not need to have the best credit score to be approved for a car title loan. Your lender takes a look at your credit profile when you apply for a title loan just to be sure that you are not currently bankrupt or presently going through credit counseling.
The primary thing that qualifies you for a title loan is the equity of your car and your ability to repay the loan.
Title loans can be a little tricky because they are called several names such as pink slip, automobile title, auto title, car title, auto equity, and car equity.
Advantages of Title Loans
- Quick Cash Loans: A title loan is a type of loan that can be a lifesaver when you are in a critical financial situation because it doesn’t take time to apply, get approved, and get the money you need. You can get the money you need the same day.
- Get as Much as Your Car Equity: You can get as much loan amount as the equity of your car. Most lenders will approve from 50% of your car equity, some do even more than 50% depending on the lender’s evaluation of your financial capacity.
- High Approval Rate: The documents required to secure a title loan are few and not challenging to get. As a result of this, the chances of getting approved for a title loan are high.
- Competitive Interest Rates: The interest rate for title loans can be attractive. However, it would be best if you compare what rates different lenders are willing to offer.
- You Get to Keep Your Car: When you secure a title loan, you don’t need to part with your car. you can still drive your car around without any restrictions as long as you do not default on the loan terms. Defaulting on the loan terms can put you at risk of losing your car. this is because your lender has the right to repossess your car if you default.
- All Credit Types Qualify: all credit types can qualify with us for a car title loan as long as your car is in good condition and you can repay the loan via a verifiable source of income.
Contact us today, we are here to help you to get the right equity loan on your vehicle. We will get you the most money, and the lowest interest rate.
