{"id":795,"date":"2019-01-03T10:39:01","date_gmt":"2019-01-03T15:39:01","guid":{"rendered":"https:\/\/titlelo.com\/learn\/?p=795"},"modified":"2023-04-11T10:40:06","modified_gmt":"2023-04-11T14:40:06","slug":"title-pawn","status":"publish","type":"post","link":"https:\/\/titlelo.com\/learn\/title-pawn\/","title":{"rendered":"How Car Title Pawns Work"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"what_you_need_to_know\"><\/span>What You Need to Know<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Have you ever heard of \u201ctitle pawning\u201d before? When you first hear the term, what probably comes to mind is selling your car at the closest pawn shop for way less than it\u2019s actually worth. However, a title pawn doesn\u2019t entail any of this. Essentially it\u2019s just another term for a title loan. <a href=\"https:\/\/titlelo.com\/georgia\/\" rel=\"noopener\" target=\"_blank\">Title loans<\/a> or \u201ctitle pawns\u201d as they\u2019re sometimes called in Georgia are just secured loans that use your vehicle as collateral. <\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#what_you_need_to_know\" title=\"What You Need to Know\">What You Need to Know<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#what_is_a_title_pawn\" title=\"What Is A Title Pawn?\">What Is A Title Pawn?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#how_do_title_pawns_work\" title=\"How Do Title Pawns Work?\">How Do Title Pawns Work?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#lender_requirements\" title=\"Lender Requirements\">Lender Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#comparing_the_alternatives\" title=\"Comparing the Alternatives\">Comparing the Alternatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#legal_regulation\" title=\"Legal Regulation\">Legal Regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/titlelo.com\/learn\/title-pawn\/#references\" title=\"References\">References<\/a><\/li><\/ul><\/nav><\/div>\n\n<div class=\"tip\">The state of Georgia processes the most title pawns out of all the states in the U.S. In Georgia, Atlanta has the most lenders.<\/div>\n<p>The reality is that even the best of us run into financial hardship. Some of us find ourselves in situations where we could use a bit of extra cash. Whether it&#8217;s to pay for repairs, vacations, or even start a business, money is a commodity. If you were to ask most successful business owners and millionaires if they\u2019ve ever had to take out a loan before, 90% of them would tell you \u201cYes, and without asking for a loan, I wouldn\u2019t be here today.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"what_is_a_title_pawn\"><\/span>What Is A Title Pawn?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Like we mentioned above, a title pawn is just a term to describe a loan secured by your vehicle\u2019s title. They differ from traditional loans because they don\u2019t require you to undergo credit background checks. The only thing that you need is a car that you own outright (not financed) and a job to prove to your lender that you have a means to pay them back. <\/p>\n<p>Most title loans are short-term loans, which mean that repayment terms are usually 12 months or less. However, if you\u2019re borrowing a larger amount, lenders may give you 24 or 36-month terms. These loans also tend to have high interest rates. It behooves borrowers to pay off the loan as early as they can. Doing this helps to avoid paying the extra interest fees and expenses. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"how_do_title_pawns_work\"><\/span>How Do Title Pawns Work?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Pawnshop organizations often advertise themselves as being \u201cthe easiest way to obtain a loan- period.\u201d Usually, these bold statements are just marketing ploys to draw in unsuspecting borrowers in need. However, in the case of title pawns, what you see is what you get. Title loans are a simple way to get the money that you need when you need it. <\/p>\n<p>When you go to apply for a title-backed loan, you\u2019ll start by bringing them your vehicle along with the title proving that you do in fact own it. They\u2019ll then perform a quick appraisal of your vehicle based on the condition it\u2019s in and it\u2019s up-to-date Kelly Blue Book value. You\u2019ll then be able to request an amount up to the total appraised value of your car. <\/p>\n<p>Keep in mind that you should only borrow what you can afford to pay back. If they offer you more than you expect, take out only what you need. This is known as responsible borrowing and is the best way to ensure that \u201ccomplications\u201d don\u2019t arise on down the line. <\/p>\n<p>After approving the loan, they\u2019ll take your vehicle\u2019s title and put a lien on it which gives them temporary legal ownership over your car until you pay them back. If you don\u2019t pay them back, they reserve the right to take your car and sell it at auction to recoup their loss. <\/p>\n<p>Most lenders will cut you a check for the amount the same day or on the next business day. You\u2019ll then be required to make payments (including interest) every month toward your balance principle. Once you pay your loan back, they\u2019ll remove the lien from your vehicle, and you\u2019ll be the full owner once again. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"lender_requirements\"><\/span>Lender Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some states have their own individual laws when it comes to title pawn loans. These laws are designed to prevent \u201cpredatory lending\u201d techniques and ensure borrower security and safety. However, most lenders that use car titles as collateral for pawns require the following:<\/p>\n<ul class=\"checkbox\">\n<li>Vehicle (in working order and with title in-hand)<\/li>\n<li>Insurance and valid plates on the vehicle<\/li>\n<li>Your personal information<\/li>\n<li>Proof of income<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"comparing_the_alternatives\"><\/span>Comparing the Alternatives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Up until the past few decades, if you wanted to take out a loan you would either have to go to your local bank or a shady loan shark. After meeting with the lender and undergoing an extensive background check, you would have to wait days or even weeks for an answer to hear back whether or not you were approved or not. <\/p>\n<p>Title pawns came out as a quick and easy way to obtain a loan using only your car title to back your loan. Instead of having to deal with extensive credit checks and long wait times, a vehicle title pawn allows you to obtain a loan for up the value of your car and take the money home the very same day. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"legal_regulation\"><\/span>Legal Regulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lending has always been a tricky subject. Unregulated lending has long fueled illegal gangs and the mob, often having disastrous consequences. As a result, many states have place regulations on lenders dictating who they can lend to, how much they can loan you, and repayment terms\/interest rates. Here are some of the common laws that you may come across, though:<\/p>\n<ul class=\"checklist\">\n<li>Limits on APR and fixed interest rates<\/li>\n<li>Some states don\u2019t allow military to take out title loans<\/li>\n<li>All borrowers must be at least 18 years of age<\/li>\n<li>Borrowers must be U.S. citizens<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Title pawning is a great way to put some quick cash in your pocket without the hassle of more traditional bank loans and personal loans. As long as you\u2019re a responsible borrower and have a plan to repay your loan and don\u2019t take out more than you need, then you shouldn\u2019t experience any problems. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"references\"><\/span>References<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&#8220;Truth About Title Pawning Loans and Bankruptcy&#8221;, Jeffrey Kelly, 2018,<br \/><a href=\"https:\/\/www.kellycanhelp.com\/blog\/truth-about-title-pawn-loans-and-bankruptcy\/\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.kellycanhelp.com\/blog\/truth-about-title-pawn-loans-and-bankruptcy\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What You Need to Know Have you ever heard of \u201ctitle pawning\u201d before? When you first hear the term, what probably comes to mind is selling your car at the closest pawn shop for way less than it\u2019s actually worth. However, a title pawn doesn\u2019t entail any of this. Essentially it\u2019s just another term for&#8230; <\/p>\n<div class=\"link-more\"><a href=\"https:\/\/titlelo.com\/learn\/title-pawn\/\">Read More<\/a><\/div>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[5],"tags":[],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9sr8f-cP","_links":{"self":[{"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/posts\/795"}],"collection":[{"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/comments?post=795"}],"version-history":[{"count":4,"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/posts\/795\/revisions"}],"predecessor-version":[{"id":827,"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/posts\/795\/revisions\/827"}],"wp:attachment":[{"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/media?parent=795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/categories?post=795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/titlelo.com\/learn\/wp-json\/wp\/v2\/tags?post=795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}