Difference between Title Loans and Title Pawn
Questioning title loans or title pawns is like asking which vacation is better in winter or summer, no matter which season it is, vacations are always worth it. Moreover, both loan products have their interest rates, payment plans, and unique terms.
The biggest difference between title loans and title pawn is how you can borrow and the interest rates charged on each loan.
Car Title Loans specifically charges low-interest rates in comparison to other loan types such as payday loans, pawn loans, or personal loans. If you consider paying high interest with rigid payment plans as a great choice then you are making the wrong decision.
Besides, getting a title loan with flexible payment plans is always the right option to get same-day funds instantly.
Auto title loan lenders allow the borrower to get up to 50% of the vehicle’s value and offer the funds based on the vehicle’s condition. In addition, a few lenders may charge high interest and do not offer massive funds.
What is a Title Loan?
The auto title loan is offering your vehicle’s title that will work as collateral to get fast cash. In addition, it works similarly to pawn loans in which one has to offer an antique item, jewelry, or any other asset to get cash.
This is not just a vehicle you will pawn off to get fast cash. Moreover, if you own a truck, motorcycle, semi-truck, or ATV, you can utilize that title as well. Take note that a title pawn is a great option if you want to part with your car for a few months while you get the required funds for paying off the loan.
Recommended reading: How to Get a Title Loan without a Job
Advantages Title Loans
Talking about an auto title loan, the initial auto pawn process is fast and does not make you wait for days to get approval. An auto pawn loan has a fewer requirement:
- Clear Title
- Valid ID proof
- Insurance Proof
- Copies of the original documents
Submitting the proof of insurance is important as it secures the lenders that the vehicle has insurance. In addition, you do not need to offer income proof or the ability to pay as you already offered the lien-free title to work as collateral.
The standard auto pawn repayment duration depends upon lenders to lenders. Besides, the payment plans are designed according to the requirement of the individual applying for a title loan.
If you cannot clear the loan amount, the lender won’t hold you responsible, as they can sell the vehicle to recover the amount offered. In case, you want to repurchase the vehicle, you need to pay off the loan amount alongside the decided interest rates.
Title Loan Benefits
The amount you can borrow with a title loan will be lower than the vehicle’s value and the maximum you can get from pawn shops. In addition, the benefits of applying for a title loan are that you offer a clear title and keep the vehicle with you to fulfill commuting requirements.
The ability to continue using the vehicle let you manage your part-time jobs helping you to earn fast cash for clearing pending loans. You can utilize the vehicle for ridesharing, food or package delivery, and even more.
Auto title loan lenders offer flexible payment plans with the lowest interest rates. We will assist you in getting the cash needed to clear pending expenses. Apart from charging the lowest interest rates, we outline the loan matching your requirements. Also, you can get cash advances if you want big financial assistance.
Is there any difference between title loans and title pawn loans?
There are advantages and disadvantages of both title loans and car title pawns, and the correct finance option for you depends upon your financial condition. The advantage of both title loans and title pawns is that you will get approval even if you do not have great credit ratings. The process is fast, secure, and easy to finish.
By choosing a title loan, you will have the advantage of continuing your vehicle while you work to pay back the loan. With a title pawn loan, you need to give away your vehicle for weeks or months while repaying the loan. This determines you cannot use the vehicle like you can with same-day title loans.
Pawning car titles also doesn’t require you have a good credit score. Which makes having this option easier than most short term loans out there.
Final Words on Title Loans and Title Pawn
These types of loans are reliable financial options to get instant cash using the vehicle’s value. Furthermore, pawn title loans need you to give full access to the vehicle until you do not pay back the taken loan. If you want to drive the vehicle while you make loan repayments, a title loan can be the perfect loan option to clear pending financial expenses.
Do you need emergency cash right now? Then a title loan is a good idea for a scured loan. Our loan terms are attainable which lets you pay within 30 days or less.
Borrow the money you need without looking for credit cards or worrying about bad credit. This type of secured loan is the perfect choice for quick cash.
Research thoroughly for both loan alternatives and apply for the one matching your requirements. This blog post aims to share necessary information about title loans and pawning car titles. At last, we will suggest you get a car title loan today by applying online now!
Recommended reading: Can I Obtain a Title Loan for a Car not Paid Off?