Title Loans vs. Pawn Shops: 4 Things You Need to Know
December 29, 2017
If you are having financial difficulties, you may be considering going to the local pawn shop to get some much-needed cash. After all, pawnbroking has long been a part of civilization, and it is a very common practice among people who urgently need cash and are willing to exchange their valuable items for it. However, pawn shops are no longer the only option available if you are in need of some quick cash. If you own a car, getting the help of a title loan might be a better option for you.Pawn Shops
BusinessDictionary defines "pawn shop" as a "store which offers loans in exchange for personal property as equivalent collateral."
How Do Pawn Shops Work?
You take a valuable item to the shop, and they offer you a cash amount based on the value of the item you bring them.
However, they keep the item until you repay the money and interest.
If you can't make the payment on time, the collateral can be sold to a third party, and you will lose it for good.
The other issue with pawning one of your valuable possessions is that you will only receive a small amount of money for them.
Even if the item you bring them is worth a lot of money, there is often a limit to the amount of money the shop is willing to give you.Pawn shops usually do not loan out huge amounts of money.
Did you know that the universal symbol for pawn shops is three gold spheres hanging from a bar? You can be anywhere in the world, and if you see that symbol, chances are it is a pawn shop.
Title Loans
A title loan, on the other hand, works slightly different.
If you own a car and need to borrow money, the tile loan company can offer you a loan based on the value of your car.
How Do Title Loans Work?
You just need a clear title, a few documents, and to bring your car in for an appraisal.
You can get as much as $25,000, depending on your car's make, model, and condition.
Why Choose a Title Loan over a Pawn Shop?
- Usually, you are given more time to pay a title loan than a pawned item. Title loan contracts are set on a 12-month payment plan, while pawn shops will give you 30 days to pay before repossessing your property—they sometimes offer another 30 days as a grace period, but with an increased interest rate and additional fees.
- You can continue using your car as usual, even after you have received your title loan. A pawn shop will keep the item you bring them for as long as you are in debt.
- The amount of the title loan can be significantly higher than the money you will receive at a pawn shop.
- The interest rate for a title loan is considerably lower (as low as 1.5%) than what you will get at a pawn shop (usually 25%)
Applying for a title loan is very simple, and with Quick Cash Auto Loans, it can be done in three simple steps:- First, call us now at (786) 600-3411 or complete the title loan form at the top of this page.
- One of our specialists will help you determine if your car meets the minimum requirements for our Miami title loans.
- Provide us with a few simple documents and have your car inspected. If everything is in order, you will get your money the same day. It's that easy! Our title loans allow you to continue driving your vehicle over the duration of the loan. For further questions, please see our FAQ section.
You no longer have to borrow against your home; pay high interest rates on other types of loans, credit lines, or credit cards; or forgo ownership of your valuable items or cherished family heirlooms if you need some extra cash. With our Miami Title Loans, you can pay monthly rates as low as 1.5%.
If you live in Miami, Florida and are looking for a solution to obtain cash quickly, we can help you. Quick Cash Auto Loans offers you a prime auto title loan service in Miami, and we are dedicated to helping customers get the car title loan they deserve, without any exhausting or frustrating procedures. Contact us by filling out the form on this page or by calling (786) 600-3411.
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