LOS ANGELES, August 17, 2021 / PRNewswire / – When people find themselves in a situation where they need extra cash immediately, the title pawn, also known as a title loan, can be a good option. Title loans are secured loans that allow car owners to pledge their car titles and receive money, often on the same day. In addition, the car owner can continue to drive their vehicle while they pay off the loan. Here’s a quick guide on how pledge a title works.
How does securities lending work?
Obtain a online title loan involves giving title to a vehicle to a securities lender in exchange for a loan. The borrower can then drive his vehicle as he repays his loan. With title loans, borrowers generally don’t need an excellent credit rating to get approved, since they are using their car as collateral to secure the loan. Once the borrower has paid off the loan, they will get the title back and can continue to drive their vehicle without worry.
Items needed to pledge a car title
Each state may vary slightly in its rules for pledging car titles. However, car owners usually only need a few things to do this:
- A vehicle
- An automobile title with the borrower listed as owner and without lien
- Proof of Income – Bank statements, W2, social security documents, etc.
- Government-issued ID – state ID, driver’s license, passport, etc.
Additionally, auto title lenders may ask borrowers for documents that verify the borrower’s address and stable employment.
Pledge a car title online
Today, many auto title lenders offer online applications for convenience. In addition to the items listed above, the borrower will need to provide information about the car, including:
- Trim level
Pledge a car title in person
If the borrower goes to the car title lender with their paperwork to apply, the company will have an employee inspect the vehicle and consider the make, model, and year. They can also use the Kelley Blue Book to determine the value and whether the car qualifies for a loan.
Once the employee is done, he will provide the borrower with the loan amount and terms. If the borrower is okay, he will get the money that day while keeping his vehicle.
Pay off the car title loan
Many auto title loans last for 30 days. If the borrower repays it on time, plus a monthly fee, he can keep his vehicle. If they can’t pay it back, sometimes they can roll over the loan by paying an additional monthly fee.
Borrowers should be careful with renewal, however, as they can quickly get stuck paying off the loan for a long period of time. Before taking out a title loan, they should make sure that they can secure the funds needed to pay it off quickly.
Pledging a car title offers quick cash
Pledging a car title is a quick way to get a loan when someone is in need of quick cash. Vehicle owners can apply for a title loan in person or online with just a little information, and can continue to drive their cars while they pay off the loan. As long as the car owner can reliably repay the loan, this could be a suitable method of covering cash flow shortages.
Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.
SOURCE Advancing America