PAWNING YOUR CAR TITLE AND CONTINUE DRIVING YOUR CAR

One major thing people who decides to pawn their car keep worrying about is if they can pawn their car and still drive the car. The fact is that pawning your car will not stop you from driving your car as all measures to make sure you are able to drive your car when you get a title loan are already in place. Only your car title loan is taken possession of by your lender while you pay off the loan and as soon as you repay the loan, your car title is returned to you.

Pawning your Car Title and driving Your Car

Pawning your car title and continue driving your car: the only thing is that you will be required to submit the title to a car that you own free and clear without any lien or restrictions. Your lender places a lien on your title just to enable them manage the risk in case a borrower absconds or defaults. The lien placed on your car by your lender gives them the audacity to repossess your car and sell it off to recoup the money borrowed.

Hence, pawning your car will never prevent you from driving your car, it is just a control measure put in place by your lender to manage their risk in case of any form of eventuality. You can drive your car while you pay off the loan. The only thing that may put you at the risk of losing your car is when you default, miss payment dates or fail to repay your loan. The process is similar to getting a car title loan while paying off your car as they both allow you to drive your car.

If any of these do not happen, you are guaranteed that you will get the title to your car as soon as you pay off the loan because your lender will remove the lien on your car title and you get back the title to your car.   

Advantages of Pawning Your Car Title to Obtain Loan 

1.    It does not require credit checks to see whether you have a good credit history or whether you have poor credit rating.

2.    It is easy, fast, and readily accessible.

3.    You can apply online or visit your lender in their offices.

4.    Interest rates are reasonable.

5.    Approval rates are high. Hence, you can be guaranteed that you will be considered when you apply for a car title loan.

6.    Defaulting does not reflect on your credit history as they are not reported to the credit bureaus.

7.    It does not require any proof of employment.

8.    Your money can be credited directly into your bank account.

Going by the advantages highlighted above, it can be said that pawning your car is a method you can explore when you need to get quick and fast financial assistance to sort out your emergency needs. The process is seamless, easy, and you are not needed to have a top credit rating to take advantage of this method of getting loan from lenders around you. Read more about car title loans from https://www.thebalance.com/car-title-loans-315534 

Title loans are also referred to as “auto equity loans,” where the borrowers apply for a loan against the equity of their cars. The amount of loan you can get is dependent on the current worth of your car. You can keep your car while you are paying off your loan unlike what is obtainable with pawn shops. However, the title of your car remains in the custody of your lender until you have fully paid off the car title loan in Jackson, MI. Only the owner of a car can use the car as collateral for a title loan and this is why the title of the car must be in your name.

To apply for a car title loan while budgeting on a low income, you are required to provide documents meant to serve as a means to identify who you are, where you live, where you work and how much you earn, and other information about your car.

Identification Documents

You need to provide certain information about you that will enable your lender identify who you are. Hence, you will need to provide your driver’s license and social security number for verification. In case you own a car but without a license to drive, then your lenders will accept a valid state-issued identification card, passport or military ID.

Residency Documents

Since title loans ae not allowed in all states, lenders need a proof of where you live so that they can be sure that you live in a state where title loans are legal. Your residency documents also help to verify your identity. You can provide documents such as utility bill, lease or a statement from your landlord, or house deed. It shows where you reside.

Financial Documents

Your financial documents are required by your lenders to show that you can afford the monthly payments. Hence, they will require a pay slip or pay stubs from employed consumers who earn wages. Self-employed individuals will have to provide between one to three years of bank statements, tax records and business financial documents. While unemployed consumers will have to provide details of their social security from the department of Social Security Administration or social services. For retired consumers, they will have to provide details of their pension, retirement account statements or SSA. Read more about loans from https://loans.usnews.com/alternatvies-to-costly-payday-loans/.

Vehicle Documents

You have to be able to proof to your lender that you are the real owner of the car and there are no current liens on the car. Hence, you have to provide details such as VIN, the title in your name, proof of insurance in case the car gets damaged or stolen. If the car was previously under a lien in recent times, then you have to provide the lien release paperwork from the last lienholder.

Reference Information

Most loan companies require that you provide at least two references with their details such as full names, addresses, phone numbers and how they are related to you. They usually do not contact your references except in situations where you default.