Unexpected life expenses often make you sell your precious items. And your car also lists under those items. However, when you need money to handle your utilities and medical bills, then certainly selling your assets is a wrong financial decision, as there is no coming back from it. You should take a better approach, which is to learn how to pawn your car title. An auto loan is not a new thing, but a car title loan is. Once you own a car, then you can borrow money against its title. With this loan, you don’t have to wait for much because many lenders release money within the same day. You can make the most of your car’s equity value.
How Does it work?
When you pawn your car title, you get a loan amount based on your vehicle’s market value. To get an idea of its value, you drive the car to the lender’s office from where an expert dealer inspects your car and then tells you how much it’s worth. Once you have pawned car successfully, then just like other loans, you have to handle monthly loan payments. When you pay off your full loan amount plus interest, you get back your car title. Pawing your car is different from pawing a precious item. Generally, when you pawn your watch, then the broker keeps your watch until you back pay the loan. In case of a car title loan, the lender only holds the title of a car while you are free to use and drive your vehicle as you are already doing.
What’re the Requirements for Pawning Car’s Title?
The most crucial step to understanding how to pawn your car title is to know all about its requirements. However, you don’t have to fret much because only a few things make you super qualified for this short-term secured car loan. Before you apply for a car loan, you must know about some main things. Requirements for pawning a car title varies from one state to another. However, the process is quick and simple. Here are some things which are must-have for getting a title loan.
A car- You must be the owner of this car.
Lien-free Car Title – No lender should be a lien-holder of car’s title
Government-issued ID, State ID, and driver’s license.
Proof of Income
When it comes to getting a car title loan, then you don’t have too much. This car loan comes first in the list of those people who are in dire need of cash as turnaround time is fast. It’s essential to have your car outright. Car title loan companies want you to provide some proof of income. If you are an employed person, then it’s enough proof as you are getting paid monthly. Lenders also demand utility bills to verify your home address while some companies go with digital address verification methods. Once you have all such documents, visit a car title company nearby and apply for a loan.
Car inspection is a vital aspect of your loan approval. Every lender has a sales associate who checks the make, model, year, and car condition. Once you have an idea about a car’s value, then the next thing is to agree to loan amounts and terms. You get a loan amount in the form of cash transfer in your bank account or a check.