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Thursday, May 4, 2017

Forget pawn shops-Use your car title to get a fast loan

Are you on the hunt for cash? Are you looking to make some money without hauling all of your beloved possessions off to the nearest pawn shop? Well, if you happen to be the owner a vehicle, you're in luck! You can use the title of your car to obtain a loan. This process can be fast and easy. Check out how you can do it below!

What is a car title loan?

A car title loan is a quick way to get cash. All you need is your auto loan title. A creditor accepts your auto loan title as collateral for your loan. This does not mean you give up your vehicle! Rather, it means your creditor can claim your car if you happen to default on your loan. However, if you plan ahead, this shouldn't happen.

What do you need?

In truth, all you need for an auto title loan is ownership of a vehicle that is fully paid off. This is because your creditor can't lay claim on the vehicle if you are still paying off the vehicle to a third party. However, to get the best possible car title loan, you will also want a few other things. First, you will want good credit. If you have a history of paying your bills on time, you can receive a better interest rate on your car title loan. Second, you will want to have a plan to pay off your car title loan. This will prevent you from experiencing problems later one.

Why is a car title loan better than a pawn shop?

The answer to this is simple! You don't need to give anything up. At a pawn shop, you must turn the item over to the pawn dealer. However, with a car title loan, you can still use your car. You will only need to turn over the car title. You will be free to continue to use your car to get to work, go to the movies, take a trip, and more.

When should you consider a car title loan?

There are some events where a car title loan is a good fit. Perhaps the most common reasons involve automotive repairs. If you can't afford to fix your vehicle, your car isn't doing you much good. A car title loan allows you to get the cash needed to fix your car. In the worst case scenario, you will lose your car. However, if your car was broken before your loan, you are actually no worse off than you were before.

Things to keep in mind

Resist the temptation to use a car title loan to acquire money for random purposes. Also, do your research. Remember, the ownership of your car is on the line. You will want that money to go towards practical purposes. Also, shop around first to try and find great rates. Finally, remember that the holder of your car title loan might be able to make stipulations on how you can use your vehicle. The vehicle is your creditor's protection. He or she will not want you to reduce the car's value through abusing it. 

If you are looking to ditch the pawn shop for some fast cash, a car title loan might be in your future. See if one is right for you today!

Image: Ken Teegardin/Flickr, CC BY-SA 2.0