How It Works

So you got a car? A really nice car, well at the very least a decent, working one, and you want to use it for quick cash? Then that's all you need to qualify for a pawn on your car title.

How Car Title Pawning Works

Car title pawns operate in a similar fashion to car title loans. There is interest that must be paid back with the principle in the agreed time frame. The fundamental difference between pawning your car title from a loan is that you get to keep driving your vehicle. If you're ready to use your car as collateral for a loan, then the first step is going online, and finding a reputable, car title agency. There, all you need to do is fill out the title loan request form online. This process normally takes less than five minutes to complete. Be sure to fill out the preferred method of contact and the time for the agent to respond to you. Car title pawns are increasing in popularity, because not only can you get quick cash, but there is no need to go through a credit background check. This relieves the hassle, stress and mostly importantly, the time factor when dealing with traditional credit checks, only to have them potentially disapprove your requests.

Once the agent responds to you, he or she will then instruct you on the other required documents. Its important to check out your particular state requirements, but generally speaking, you must be at least 18 years of age, provide proof of income as well as your current residency, along with valid registration. A clean driving record is also of paramount importance to getting your loan. You can sign these documents and send it back through mail, or you can present them in person for the agent to look over. When meeting the agent in person, he or she will inspect the vehicle and then appraise its value. This inspection and process normally takes less than 15 minutes. Once approved, you will sign the contract agreement that stipulates the payment terms and interest rates.

Be sure to talk to your agent about different loan rates, for some APR rates can get very steep. Above all, once you sign the contract, you must honor the payments. Failure to make payments in a timely fashion, will result in your car being repossessed. The agency will take the difference from the value of the car, from the payments that you paid. It is also important for people making payments to maintain valid registration and insurance.