The Pros And Cons Of Taking Out A Title Loan

    • When it comes to buying a used car or pre-owned car, it’s important to do your homework. Whether you’re buying from dealers of pre-owned vehicles or dealing with a private seller, here are some helpful steps for finding the right pre-owned vehicle.

      • Choose the right vehicle: presumably this is a car or truck you plan on driving for a while, so it important to pick a something you’re comfortable with.
      • Set a budget: figure out how much you’re willing to spend for a vehicle and find something that fits your needs and meets your budget.
      • Go for a test drive: again, it’s going to be your car, so take it for a spin and see how it handles. An estimated 20 percent of used car buyers don’t take the opportunity to test drive a car before buying it.
      • Price cars: Pricing guides such as Kelley Blue Book can give you an idea of what a car is worth and how much you might expect to pay for it.
      • Know a vehicle’s history: Use a vehicle’s VIN number to get a rundown on the history of the car and to make sure there’s nothing shady going on.
      • Negotiate a price: If you’ve done your research and know how much your perspective vehicle is worth, you can negotiate with dealers and make sure you don’t get swindled.
      • Wrap it up: Once you’re done negotiating, make sure you’ve got all the proper paperwork taken care of and a payment plan set up. Virtually all auto dealerships offer on-site financing.

If you’re able to secure a used car that’s in good condition, you can potentially use the car to secure a title loan. The average auto title loan or title pawn amount is $1,000, is secured by a borrower’s car title and it can allow drivers to have a fast, easy way to a short term cash loan if they need it.

Want to get a title loan fast? Here’s what you’ll need:

      • The title to your car
      • Your ID
      • You have to own the vehicle.
      • You must have a lien-free car title in your name.
      • You must have your car inspected as the amount you’re given will depend on the condition and value of the vehicle.
      • You must have a reliable source of income.

While it’s fairly easy to get a title loan fast, knowing the pros and cons of them are important:


      • As previously noted, if you get a title loan fast, it means you’re getting money fast since the loans are processed in just one or two days.
      • If you own a car, you can get a loan because there are no credit or background checks involved with title loans. You’re getting a secured loan based on the collateral (your car) that you put up.
      • They’re perfect if you have bad credit because there’s no risk for the lender and you’ll be able to get money you need.
      • You’re able to keep your car and drive it as you pay on your loan.



          • You may be able to get a title loan fast, but know that it’s supposed to be temporary. For your first month interest rates are low, but for every month you extend, they’ll go up.
          • Since the loan is for a short amount of time, you may end up having to pay back more than you bargained for if you can’t pay it back within the time frame.
          • If you default on your loan, then the lender has the right to take control of your car. At that point, they’re free to sell it and make back what they lost.
          • Quick cash is great, but, you, the borrower are at risk and losing your car could have some negative consequences for your everyday life.
          • There are predatory lenders who will help you get a title loan fast, but you’ll likely end up with unreasonable borrowing terms and might end up paying a lot of money as well as losing your car.

Having a plan when you go to buy a used vehicle will make the whole process a lot easier and make negotiations with dealers of pre-owned vehicles a lot less stressful. The same goes for title loans. Finding a reputable lender and a way to pay a title loan back quickly will help you keep your car.

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