Owning a car means you have access to a valuable asset you can use to secure funding. But before applying for a title loan, what do you need to pawn a car title?
What Requirements Do I Need to Meet to Pawn a Car Title Online?
If you are searching for the paperwork you will need to pawn a car title, you may be concerned about the initial requirements. With a title pawn, you can use your vehicle’s title as collateral to borrow money.
The requirements for a title pawn are that you have a vehicle title in your name, and you meet this criteria:
- You are 18 Years of Age or Older
- You Reside in a State Where Title Pawns are Legal
Do I Need to Undergo a Credit Check to Pawn a Car Title?
Having to undergo a credit check is a necessary process when you are attempting to get financial loans. If you have bad credit, you may be concerned that a credit check will make you ineligible to pawn a car title. Your credit history may be looked at, but many title pawn lenders tend to not focus on your credit history before approving you for cash. This may seem like a bonus, but there are risks to this type of easy lending. This could be an indication of a lender that does not care about your financial future or if you can afford a loan payment in the long run.
What are the Risks if I Pawn a Car Title?
There are always risks when borrowing emergency cash, but there are many drawbacks to pawning a car title. If you want to pawn your car title to help pay some bills, you should be aware of the potential risks.
When borrowers miss numerous payments or stop paying altogether, they may default on their title pawn loan. Individuals that have loan default are at risk of repossession. If a borrower is in default and continues financial delinquent behavior, the car will be seized and towed to a secure lot.
The car will remain in a secure impound lot until the borrower either pays the balance of missed payments or the allotted time set by the lender has passed. If payments are not made at this point, then the car is sold at auction in an effort to make up the remaining balance of the loan.
On top of this risk, you may not even be able to keep your car while you repay your loan. In some cases, if you pawn your car title, the lender may opt to keep your car title and vehicle on their premises until the loan is repaid in full. While this is not true of every title pawn lender, it is a risk to be concerned about if your vehicle is your main source of transportation.
Why Choose a Title Loan Serviced by LoanMart over a Title Pawn?
A title pawn and other title loans may not come with the right benefits you’re looking for in a loan. On the other hand, LoanMart can allow responsible borrowers to keep driving their vehicle during the repayment process if they make their payments on time. This is a huge advantage to borrowers that only have one vehicle to get them where they need to be!
If you’re ready to take advantage of the perks of a title loan serviced by LoanMart, take a look at them:
- Efficient Service: With LoanMart, you have access to an online approval process that is streamlined for your convenience.
- Online Inquiry Process: While many title loan and title pawn providers require you to visit a location in person to apply for a loan, LoanMart can offer a better alternative. With LoanMart, you can take advantage of the convenience of an online inquiry process!
- No Prepayment Penalties or Hidden Fees5: Here at LoanMart, you are encouraged to pay early, and pay often. LoanMart won’t set you up for failure or set you up with a loan you cant afford.1 Instead, you are encouraged to repay early and enjoy no hidden fees or prepayment penalties.5
- Fast Cash3: You don’t need to wait around to see if you qualify for the cash you need!3 With title loans serviced by LoanMart, you can get your cash in as little as one business day.3 It takes no time at all to apply!3
What Requirements Do I Need to Meet to Obtain a Loan with a Car Title?
While a title pawn may seem convenient, save yourself the headache and work with the LoanMart team.
Title loans serviced by LoanMart offer more benefits than a traditional title loan and the convenience of an online process. The best thing is, you can keep your car while you repay your loan on time!
That may not always be the case when you need to pawn a car title. Generally, there are three main requirements for a car title loan:
- A Qualifying Car with Positive Equity
- A Car Title in Your Name
- Proof of Reliable Income
If your vehicle is an older model, you may still be able to qualify if it has enough equity. The market value of your car is used to find the equity of a financed car. If you don’t know the market value of your car, answer a few questions online to get a free title loan estimate.
If your car is estimated to be worth $10,000, but the remaining balance of your auto loan is $3,000, then the equity of your equity is $7,000. Vehicles have positive equity when the car is worth more than the auto loan.
What Documents Do I Need to Pawn a Car Title?
Typically, with a title pawn, you need to hand your documents to an agent in-person so your information can be verified. Instead of looking at the documents you need to pawn a car title, stick with a title loan option that is more convenient!
With title loans serviced by LoanMart, the entire approval process is about convenience, so you could upload photos of your documents online from your smartphone or computer. To take the best images, place your paperwork on a flat surface with bright light.
These are the general documents you will need to provide to apply for a title loan:
- Car Title: The car title to your qualifying vehicle must be in your name. If the car title does not have your name listed, then you will need to visit your local DMV to get a title transfer.
- Proof of Income: Your ability to make payments on time each month is required to obtain a title loan. You can use alternative income with title loans serviced by LoanMart, such as bank statements, paycheck stubs, Social Security benefit statements, workers compensation, etc.
- Proof of Residence: As proof of your residential address, you could provide recent utility bills, credit card statements, insurance statements, a lease agreement, etc.
- Proof of Identification: Your identity must be proven in order to get instant emergency cash. You can use any valid government-issued photo ID, such as a state ID, driver’s license, or US passport.
- References: You may be asked to provide personal or professional references.
How to Start the Process to Pawn a Car Title
Ditch the idea of a title pawn and stick to title loans serviced by LoanMart! If you want fast cash to spend or to solve a financial emergency with, a car title loan can be your best financial resource to choose.
One of the biggest advantages of a car title loan serviced by LoanMart is the ability to inquire online, or over the phone with an agent. Most title pawn providers (and some title loan providers) require a borrower to head to a brick-and-mortar location to apply for cash- so why choose an option that is so inconvenient?
Dial the toll-free number (855) 422-7412 to speak with a knowledgeable agent. Or, you could choose to answer a few questions online about your car using the car title questionnaire. You could get started on your title loan inquiry from the comfort of your own couch. If your car qualifies, you could receive a free preapproval quote in minutes!3