One in five Americans doesn’t have any savings. More than 20% of Americans don’t have savings for unexpected expenses like home repairs or medical bills. You might consider a pawn if you are having trouble making ends meet because of unexpected expenses or a change in your financial situation. There are many types of pawns, so it is important to investigate all options.
How do you determine if a title pawn is right?
These are the questions that will help you find the right answer.
Are You Confident in the Work of Car Title Pawns?
First, you should ask yourself if you are familiar with how a title pawn works. Title pawns do not work like other personal financing options. A title pawn can be described as a secured financing option. It is supported by collateral. You must use your vehicle’s title as collateral to get a money title pawn.
However, this does not mean that you have to give up your vehicle to borrow funds. If you are approved for a title pawn, your vehicle will still be yours. By keeping the title, a lien is placed on your vehicle until the pawn is repaid. You can use your vehicle as usual while we make payments on the pawn.
Once your pawn is fully paid off, the lien will be removed, and your title will be returned. The title pawn company can take possession of your vehicle if you stop repaying your title pawn. You will lose your vehicle if you do not make your payment.
Lake Title can also offer title pawns, even if your vehicle is not free and clear and you are still paying for it. Your vehicle’s equity will determine how much money you can borrow.
How Fast Do You Need Money?
Next, consider how urgent you require the money. A traditional personal financing option can take longer to approve. However, if you are in urgent need of money, it may not be possible to wait for approval. Title pawns can be processed faster than personal financing. Title pawns are a great option for those who need quick money.
Your money will be available as soon as you have been approved for a title pawn. You have two options: you can either walk out with the money in your hand or if you meet the qualifications for applying completely online have it directed to your checking account within the next business day. To avoid delays, make sure you have all the required documentation when finalizing your pawn. Your application will be processed faster if you do this.
Are You a Vehicle Owner?
Title, registration, or title receipt of your vehicle are used as a pawn. You will need a vehicle in your name to be eligible for a Title Pawn.
However, you don’t have to be the sole owner. While your name must appear on the paperwork for the vehicle, it does not have to be the only one. You may be able to use your title as collateral for a title pawn if you own the vehicle in part with another person, but it may require the other person’s authorization or signature. If the names are separated by “and” then the other party will need to agree to the pawn as well as sign the pawn. If the names are separated by “or” then both parties do not have to agree and sign the pawn. Either party can get a title pawn.
Title pawn companies won’t accept any vehicle as collateral for title pawns. The title pawn company may require that your vehicle meet a minimum value requirement.
Are You a Stockholder in Your Vehicle’s Equity?
It is also important to determine if you have equity in your vehicle. Equity is the difference between your vehicle’s resale price and the amount that you owe. If your vehicle has a resale price of $15,000 and you owe $5,000 on it, then you have $10,000 equity. If your vehicle has a resale price of $10,000, and you owe $12,000, then you don’t own equity in it. To qualify for a title pawn, you must have equity in your vehicle. To determine if you have equity will require a quick 5-minute vehicle inspection.
How much money do you want to borrow?
You can borrow a title pawn from a pawn lender, but it will depend on many factors including your vehicle’s pawn value and your ability to repay. Lake Title will inspect your vehicle to determine how much you can borrow without affecting your credit because we do not conduct a credit check.
Do you have a reliable source of income?
When determining your eligibility, the title pawn business will consider your ability to repay the title pawn. Lake Title does not require income proof, but you may be eligible for more money if you provide income proof during the application process.
Can You Get a Traditional Personal Financing Without Having to Pay a Fee?
To be approved for traditional personal financing, borrowers need to have near-perfect credit scores. A title pawn may be the right option for you if you have poor credit and are unable to obtain traditional personal financing.
Your eligibility for a title pawn does not depend on your credit. Why? Title pawns can be secured with collateral, unlike traditional personal financing. Title pawn companies consider many factors in determining your eligibility. These include the value of your vehicle and your ability to repay the title pawn.
Are you ready to apply for a title pawn?
You should now have a better understanding of whether title pawns on car titles are right for your situation. These steps will help you apply online to a title pawn at Lake Title.
- Begin the application process online or call us at (904) 353-2274, or (352) 692-2274) to speak with a pawn representative.
- Apply for approval. The pawn representative will first ask about your vehicle and your income. Your pawn representative will then prepare your free quote using this information.
- Review Your Quote. To learn more about the amount you can borrow, your interest rate, payment frequency, and the payment amount review your quote.
- Sign and submit the necessary documentation to finalize your title pawn. This step will be guided by your pawn representative.
- Receive your funds. If applying in person you will walk out with a check in hand. If you are qualified to completely apply online you will receive the funds in your checking account by the next business day.