Auto pawn loans are a great way to get some quick cash when you’re in a bind. However, there are several requirements. Learn what they are here.
Bad times seem to come in clusters. The air conditioner broke, the kids are sick, and groceries keep going up. You need a little extra money, but your credit scores are in the dumps due to 2020 unemployment.
You need cash, and you need it quickly. How are you going to get it and make sure that you get through the stormy days? If you’ve got a car title and a working car, you may be able to get an auto pawn loan. Read on for the ins and outs of a car pawn loan.
What Is A Pawn Loan?
A pawn shop is a place where you can get money for a variety of items. That includes tools, electronics, firearms, and collectibles.
You can outright sell the items and get a lesser amount. If you want more money for the item or want to get the item back after you bring it in, you will ask for a pawn loan. That means that you will come back in a set amount of time – several weeks to a month – and pay back the money plus the interest for the loan.
For people with bad or no credit, pawn loans can be a source of quick cash. You are essentially getting a loan with no credit check. You are using your items as collateral.
Many people don’t realize that pawnshops can also offer pawn loans for cars. Pawning your vehicle can either be a straight-out pawn or what’s called a title loan.
Auto Pawn Loans Explained
A title loan for your vehicle can often mean that you can receive cash from a lender or pawn shop and keep your car to use. To receive this loan, you will need to provide a copy of your title or the actual title, a copy of your valid state ID card, and proof of whatever income you make.
You can continue to drive your car and, you can choose to pay off the amount borrowed in full or pay the rollover fee. You can generally get about half of your car’s worth.
A car pawn loan means that the car stays with the shop giving you the loan. It must be insured for the life of the loan even though you are not driving it.
Your pawnshop must disclose the interest rates and any fees that may be attached to your loans before you sign the loan papers.
Pawnshops are obligated to do their best to make sure you own what you are pawning. Sometimes you can outright sell your car to a pawnshop. Generally, you will get less money than you would if you obtained a loan for it.
How To Get An Auto Pawn Loan
If you feel you need the quick cash and have a car that is in fair condition, you will take it to a pawnshop or lender that offers auto pawn loans or car title loans.
At the pawnshop, they will ask you for proof of identity and residence. You can use your state-issued ID and a utility bill or other piece of mail to prove residency.
You must prove you own the car by showing them the title. They will not do a credit check to issue the loan.
They will need to see your title to know the car is yours. You will need to be 18 or older. The better shape your vehicle is in, the more it will be worth. Some lenders will give you up to 50% of the car’s worth.
You will sign some paperwork stating the terms of your loan. That includes the percentage rate of interest and the due dates for your auto pawn loan payment.
What Is A Rollover Date?
If you cannot pay the amount in full, you generally will have a date where the loan ‘rolls over’ to a new set of rules. That means that your interest rate may go up.
If you can’t make a rollover payment, you may forfeit your car.
For instance, you may have borrowed $1500 on your car’s title. You have a rollover payment of $600. That includes fees for extending the loan’s due date and the interest on the loan. You can pay the loan in full, or you can choose to pay the $600.
If you pay the rollover fee, your payoff cost will likely continue to go up. It is best to use this as a short-term solution when you are sure that you can pay off the loan and interest in full. Otherwise, you may end up paying a lot more for your car than it is worth.
Advantages Of An Auto Pawn Loan
There are several advantages of an auto pawn loan.
The first is that there is no credit check. If you are in the process of building (or rebuilding) your credit, there is no inquiry to lower your credit score. If you have bad credit, this is a way to get cash when you need it.
There is a minor hassle in getting a car pawn loan. If you have the required documents above, you can generally get the loan in under an hour. Only borrow what you need.
If you need to extend the loan (the rollover period), it is easier than a traditional loan’s payment date.
Quick Cash And Friendly Service
If you need quick cash, we are here to help you with a car title loan or auto pawn loan. The only qualifications you need are to own your vehicle and have the required identification and residency proof.
We are happy to answer any questions about the loan’s terms and what you can provide to walk away today with money in your pocket. If you have more questions about these types of loans, you can read our FAQs or contact us!