March 25, 2020Many consumers need cash fast and have very few options. For this reason, a lot of them are willing to do almost anything to get the money they need, including using a pawn shop. Pawnshops might have a purpose, but using a pawn shop to get cash when you are under financial strain might not be the best idea. What's the difference between a title loan and a title pawn? Many consumers confuse the two, but there are big differences that you need to know about.
What Is a Title Pawn?A title pawn refers to pawning your car title to get money. What actually happens with a title pawn is that you take your car to a pawn shop and they give you a loan. The loan they give you is never even close to what your car is worth and the risks involved are huge. First, keep in mind that when you do a title pawn, you have to leave your car and the title for the vehicle with the pawnshop. You have a specified time to return to pay off the loan you were given. The time frame is typically 30 days, although it can vary from one pawn business to the next. If you don't return, the pawnshop has the right to sell your car immediately, without any kind of warning whatsoever. Most pawnshops don't rely on giving loans to make a profit. They get their money by selling the property consumers use to obtain the loan, so if you pawn your title (your vehicle), you will likely lose it as soon as you don't return to pay back the money the pawnshop gave you. Very rarely will a pawn shop work with you to avoid having to sell your vehicle. They want to sell your vehicle. For them, that's where the money is.
What is a Title Loan?A title loan, or car title loan, is a loan you obtain from a car title loan company like TitleSmart. Unlike pawn shops, car title loans can be obtained from car title loan companies using your car title. At TitleSmart, we won't ask you to leave your car with us to qualify for a loan. We know that you need your car, even more so when you are under a financial strain, so all we ask is that you leave your car title with us.
How to Get a TitleSmart Car Title LoanGetting a car title loan from TitleSmart is super easy. Our title loan experts are here to help you when you need us. We go out of our way to give you the best loan experience you'll find anywhere. Here's what you need: