Benefits of a Secured Loan Using Your Vehicle Title

Benefits of a Secured Loan Using Your Vehicle Title

Are you in need of money? 


There are many options available to you for getting money that will suit your financial needs? If you can, secure a loan using the vehicle’s title. Vehicle title pawns can be quick and simple loans, with very little documentation. This loan is available to anyone who owns the vehicle. 


Conventional loans require credit checks as well as a source of income. Vehicle title loans have no or very few restrictions. People who are financially struggling and those looking for quick approvals to borrow money often use vehicle titles. 


Vehicle title pawns are an alternative to traditional bank loans. Because of their flexibility, vehicle title pawns have become increasingly popular. Don’t worry about credit checks or your employment status. Bank accounts are not required. Vehicle title pawns require that the borrower has an active vehicle registration and a clear Vehicle Title. Vehicle title pawns offer fast approval for your loan request. Vehicle title pawns are a great option for anyone who is self-employed, unemployed, or retired. 


The Vehicle Title Pawns process is easy and straightforward: 


  1. As collateral, you can provide Vehicle title.
  2. The amount of money that is approved by the Borrower; and
  3. Once the loan is paid in full, the vehicle can be returned. 


Simple right. There are a few things you need to know about the benefits and risks of a title pawn. 


Positives to a title pawn 


A title pawn’s greatest advantage is its convenience and speed. A title pawn is a quick way to get funding for your financial needs. However, there are some requirements that you must meet. These may vary from one lender to another, but they will usually include: 


  • Your vehicle will be given a free and clear title
  • Use a bank statement or pay stub to prove income. (Note: It is possible to still be eligible even if you don’t have proof of income.)
  • Use a utility bill, bank statement or other evidence to prove residency.
  • You must be at least 18 years old to apply. 


You can also get funding the same day as your project or the next day. 


You can drive your vehicle and repay the loan amount. It is also known as a vehicle title loan and not a vehicle pawn. The lender requires only the title to your vehicle, not the keys. 


Negatives for Getting a Title Pawn 


Losing your vehicle is one of the greatest negatives of a title-pawn. Your vehicle could be taken away if you are unable to repay the loan. Most title pawn lenders will let you extend your loan beyond the original repayment plan, so you don’t lose your vehicle. You should be aware that extending your loan will incur a fee. 


High interest rates are the next thing to be aware of when a title pawn is being repaid. Title pawns must be paid back within 30 days. Although many lenders offer 30-day interest-free loans, if you cannot repay the loan within 30 days the interest rate could be extremely high. Don’t forget that a title loan should only be used to cover unexpected or urgent expenses. It is not advisable to buy new technology or clothes. 


Title pawns can be a great way to pay for the costs of an emergency situation. However, there are some things you should consider before signing the dotted line. 


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