In recent times, title pawns have become very popular among individuals who wish to get a quick fix for lingering financial issues. The fact that such loans are easily accessible and can be gotten in a short period of time has actually made them very popular in America. If you haven’t heard of the car title pawns or you have heard but yet to understand how it works in principle, this is the article for you. Read on to understand car title pawns and how they have become the modern lifesavers in the various American states.
What is Car Title Pawns?
A title pawn is a kind of financial security or loan granted to an individual with his car title serving as collateral. The way it works is this. When someone needs to get a loan for any reason, he approaches the credit granting financial institutions and applies for it. Instead of the usual vetting, exhaustive documentation, and the routines that follow the normal credit facilities, all that would be required of the applicant are some few documents and the most important one is the title of your car. Once you have the title of your car in place, you are closer to the loan than you might imagine. Once the loan is granted, the title of your car or vehicle is passed to the lender until the time when the loan has been fully repaid according to the agreement.
Is it Only a Car Title that Can Be Used to Access the Loan?
This kind of loan started as car title pawn because the title of a car was the first to be used in accessing it when it started. However, things have changed since then and that is why they are usually referred to as ‘Title Loans’ these days. What this means is, getting a loan is not limited to your car title. It extends to other vehicles like your truck, bus, and motorcycles. All you need do is just get the title of these vehicles available, and you would be getting the loan.
What are the Documents Required for a title pawn?
In accessing the title pawn, you would need the following documents.
- Car Title or the title of the other vehicles
- Proof of residence
- Vehicle registration particulars
- Car Insurance documents
- Proof of income generation
- Identity issued by the government
How Much Can I Get?
What an individual can get as a title loan depends on the condition of the vehicle whose title is being put forward as collateral. The condition, mileage, brand, and resale value of the vehicle would be used to determine how much you can get as an applicant.