A title loan (also known as a title pawn) is a loan where you can get cash fast and conveniently if you own a car or motorcycle. As long as you have a lien-free title that is in your name you just use that vehicle as collateral to get your needed loan. You temporarily provide the hard copy of the title in exchange for the loan. So the title serves as collateral instead of your credit history.
Best of all, you don't need to have a job, bank account, or good credit to get a loan.
Also, just like any other loan that's not from a really good buddy or family member they charge a fee or percentage on top of the amount you borrowed to pay back. This fee differs from each provider of the title loan.
The loan usually is for 30 days and the amount you can borrow is different from each source but a typical good rule of thumb is that you can borrow up to 50% of your cars value. You can get extensions and the rules also change with each provider. Title loans are a great option to get cash very quickly and without any kind of good credit in your name when you need money a.s.a.p. (loans are typically approved in 15 minutes or less!) for car repairs or a long awaited vacation or whatever emergency may come up.
The biggest benefit to getting a Auto title loan is that it enables the borrower to get the money they need extremely quickly. Car title loans are usually processed within a day or two. This is because it is a simple process, that really only involves the lender looking at your car to make sure it is worth at least the amount you need to borrow.
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