So, you want to take out a title pawn. You’ve probably heard about this particular type of loan from a pawn shop before. It’s a pretty good way to come up with cash quickly, especially when you don’t have access to a lot of funding. However, if you are going to get started with a title pawn, you need to understand how the process works and what you need to keep in mind. Let’s take a look and check out what you need to know.

So, What IS a Title Pawn?

A title pawn is all about using someone’s ownership of an asset as the collateral for your loan. This means that you’ll wager the vehicle as your security for taking out a loan instead of directly selling to a pawn shop.

How Does It Work?

So, a title pawn is usually only for a 30-day  loan term, and the borrower will be expected to pay the loan balance back in full plus interest to get their title.

One of the options that you have available is to pay more interest than you are expected to pay to cut down the principal balance. This will save you money in the future, so it’s recommended that you do it if you can afford to.

Is a Title Pawn For You?

There are a few benefits to getting a title pawn. Typically you will be able to borrow more money at a lower interest rate.

You can also enjoy things like getting same-day approval and being able to keep your vehicle whilst you are repaying the loan.

Do We Recommend a Title Pawn?

In a lot of ways, the title pawn is a good thing. However, if you’re going to try and make cash quickly, we recommend that you just sell your items.

Ultimately it’s just an easier, safer way to make sure that you get the cash you need with minimal disruptions. We know that occasionally people don’t want to part with their items, and we totally understand that, but it is also heavily recommended that you try and use this method where possible to get the results you need. It’s better than a title pawn, in our opinion.

Title Pawns Are Okay

So, here’s the thing. We love the idea of people using pawn shops to make a bit of money, but the thing you need to remember is that a title pawn isn’t always optimal. You need to try and sell your items where you can. It’s a much better way of doing things that gives you the same money without the hassle, so it’s well worth selling rather than using a title pawn loan. It’s definitely an option, but we would always recommend using the selling function before anything else because it has a proven track record for being effective. It might take a little while to figure out, but it’s worth it.