Do you feel that all your doors are closed to getting financial help? Well, a financial crisis can occur to anyone and during such times, most people often consider getting a loan from conventional sources. These sources can take a longer time than expected and can later put you in trouble. However, the best option to get immediate cash is by opting for title pawn online. In this loan type, you only need to have a car which you can use as collateral to get fast cash.
Plus, there is the involvement of very minimal paperwork and you don’t need to have a great credit score or credit history to get this loan type. It works in your favor and allows you to have peace of mind, unlike other traditional loan options. But before applying for it, you should know about title pawn loans.
What is the working of title pawn loans?
Title pawn loans are similar are auto equity loans where you can borrow an amount by keeping your car as collateral. The lender keeps your car as collateral to offer you an amount equal to its condition. However, you can keep driving your car in the state and the lender doesn’t withhold your car. Also, the best thing about getting title pawn loans is that there are very few eligibility requirements.
There is no involvement of credit checks, whether you have a low or great credit score or zero credit history, it is given minimal importance. Plus, the paperwork is very minimal which means you can get immediate cash as soon as you submit the documents to the lenders.
Despite the name of the loan, there is no need to go to the pawnshop to get the loan. You can apply for it online and can get funds of around 25% to 75% within 30 minutes.
Pros and cons of title pawn loans
Pros –
There is no doubt about the fact that title pawn loans can be beneficial when you are in dire need of immediate money. They come with maximum benefits which can work in your favor as compared to conventional loan options. Here are the pros of title pawn online mentioned below:
- No need for a great credit score – To apply for a title pawn loan you don’t need to have a great credit score or credit history. Most lenders don’t even consider it when offering title pawn loans. Thus, you don’t have to fret about your credit history.
- Fast cash – With title pawn loans you can get quick cash. There is nothing to waiting in long queues or waiting for months to get qualified for a loan. You can get quick cash within 30 minutes or the same day.
- No need for a bank account – There are some lenders who require you to show your bank account or saving account. But there are some lenders which don’t need you to show your bank details. Thus, there is no need to have a bank account to get title pawn loans.
- You can drive your car – The best thing about getting auto equity loans or title pawn loans is that you can keep driving your car even after being approved for the loan. The lender doesn’t keep your car with himself. Thus, you can drive your car to your kid’s school your favorite restaurant, etc.
- Minimum documents required – There is the involvement of very basic yet important documents when you are getting this loan. Unlike traditional loan options, there is no lengthy paperwork or requirement of documents. The moment you will send the documents, you can get the title pawn loan.
Cons –
- Expensive repayment – The title loan’s APRs are in the triple digits which means you can end up paying triple what you have taken as a loan amount. This can be problematic for you in the long run.
- Some restrictions – Getting a title loan online also depends on where you live. The rules and regulations of the state matter the most. Thus, there are chances of your state not supporting title pawn loans.
- Fear of losing your car – There is a fear of losing your car if you are unable to repay your borrowed money.
- Might fall into debt cycle – A lot of lenders can roll over the title pawn online which means there is an addition to the cost every time. Thus, this can create issues while paying off the borrowed money.
The right way to apply for title loans
You can easily apply for title pawn online. There are some lenders that do offer the option of the offline application. However, there is a small process to complete before getting approved for the title pawn loan. As soon as you submit your documents to the lender, you can get approved by the lender. However, here are some of the eligibility requirements which you need to fulfill:
- You need to have a lien-free car or vehicle
- The state in which you are living should have a title pawn loan eligible
- Driver’s license should be state or government-issues
- You should have a regular income source
- You should have proper residence proof in the state you are living
- You should be of age 18 years or above
To apply online, you should find a suitable lender and fill in the application form. After getting a response you need to submit all the documents and wait for being approved. They will also inspect your car or vehicle and then decide the amount of your loan. Before signing the contract of the loan ensure that have read all the terms and conditions. At last, you can collect your cash.
Conclusion
The terms and conditions of auto equity loans and title pawn loans are the same. They are the quickest financing options that can keep your boat floating during tough financial situations. The above-mentioned details about title pawn loans will help you make a better decision and avoid any unnecessary mistakes.
