In the movies, you sometimes see one of the characters pawn their valuables in order to buy something important or pay off a debt of some sort. While this makes for a compelling and dramatic storyline, in real life there are a few major problems with this strategy for addressing a pressing financial need.
For one thing, the pawn broker appraises your items based on what they believe they could quickly sell them for. They will then loan you money based on a percentage of that amount, which is usually a fifth or a fourth of the actual value. They also charge you interest on the loan, and if you miss the deadline for repayment they keep and resell your valuables, pocketing a tidy profit.
Is it really worth losing an irreplaceable item that has possible emotional value attached to it simply to get some emergency cash? If there were a better way, would you be willing to consider it?
The better way to get fast cash these days is with an auto title loan. There are so many reasons why you should consider using the equity of a vehicle you own to get extra cash instead of heading to the pawn shop. Here are just a few of the ways that auto title loans are better than pawning your valuables:
There is one thing that pawns and title loans have in common: If you have bad credit, you could still qualify. Title loan lenders do not report to credit agencies, including if you default on the loan.
When you go to a pawn shop, an employee appraises the item and tries to offer you the lowest amount possible. This ensures that they can make a handsome return in case you default on the loan. And of course, the broker will sell your valuables as quickly as they can after the term expires for repayment. However, when you get a title loan, not only do you get to keep your car during the entire time you are repaying the loan, but you also can refinance by paying the interest owed.
Whether it feels like it or not, you aren’t the only one who struggles to pay your bills or take care of other money-related expenses. According to a Federal Reserve report, 31% say they’re having trouble making ends meet. That’s 76 million Americans who are struggling with their bills and other financial responsibilities.
In that same study, the Federal Reserve reports that most Americans would struggle to pay for a $400 expense, which is why so many turn to pawn shops for emergency cash. Surprisingly, this statistic is not just for those with menial jobs; those who earn more than $100,000 a year – 19% – say they couldn’t cover a $400 bill if an emergency popped up unexpectedly.
Maybe you are thinking about pawning some of your high-end valuables in order to get fast cash. That means you are willing to sell something that holds everyday value and nostalgic significance. Perhaps you think it is a much quicker and easier way to go about getting the cash you need, but more and more people are using their vehicle’s equity to get the extra cash they need.
The approval process is quite easy and simple. The first step is to fill out an online request form with the basic information about you and your vehicle. Shortly after, a trained store representative will contact you by phone to explain the process, answer your questions, and make sure you have the required items. You could be on your way with your cash and your car in as little as 30 minutes.
Whether you take out a title loan or pawn your valuables for emergency cash, be sure not to rush into the decision. Auto title loans are designed to be a short-term strategy to provide fast relief for your financial worries. Make sure you can pay it back on time and that you don’t borrow more than you can afford to pay back. Otherwise, it could turn into another financial burden like the ones you’re trying to get a handle on.
Now that you know the facts and benefits of auto title loans over pawning your valuables for cash, you can do something about it. You’ve worked too hard for your valued possessions to risk losing them for pennies on the dollar, especially when you can actually still use your car while paying off a title loan. Get started today by filling out an online request form and head to your local title loan location today for cash amounts up to $15,000 in as little as 30 minutes.