Are you looking for fast cash options for bad credit? If so, you may be wondering about a title pawn vs bank loan for bad credit, as both are emergency financing options. However, most traditional banking institutions do not allow borrowers to get approved for poor credit, whereas you can get a title pawn for bad credit.

In this guide from Alabama Title Loans, Inc., we will explain the differences between title pawns and bank loans and discuss which of these fast cash options with bad credit is best for your financial emergency.

Title Pawn Vs Bank Loan For Bad Credit: What Are The Differences?

According to an Experian study in 2024, about 28% of Americans have a credit score below 670. This is considered a poor score and can affect a person’s ability to earn a car or home loan and get approved for an apartment. The reason for someone’s low score may be out of their hands, as they may have lost their job unexpectedly and failed to make rent and debt payments they otherwise would have.

If you are facing a financial emergency and are looking for fast cash options with bad credit, you may be considering two of the best loan options for bad credit in 2025: title pawns and bank loans. Both allow you to borrow money for an emergency, but which is right for you, given your credit situation?

Learn about title pawns vs bank loans for bad credit below:

1. Credit Requirements

Banks are going to have stricter requirements for approving even a small loan. Most require a credit score of at least 700. Those with a strong banking relationship and who have been a customer for years may be able to swing an approval, but most banks will require a strong credit score for security that the borrower will repay the loan.

A title pawn doesn't only look at your credit before deciding if you qualify. While your credit can always get checked for a title pawn, that doesn't automatically mean you will be disqualified if your credit is poor. Your lien-free vehicle title secures the money given, so credit scores don't play a major role in getting approved. You can get a bad credit title pawn, as long as you meet the other requirements.

2. How Fast You Can Get Approved

Banks are notorious for taking a few days to a few weeks to process a loan, get approval, and get you the money. However, the time it takes to gain bank approval directly correlates to your credit score. The lower the score, the more time it takes. Most borrowers facing an emergency who need fast cash loans for bad credit don’t have the time to wait, as they may need to pay their costs in a couple of days.

You won’t have to wait that long if you pursue a title pawn. The entire title pawn approval process with bad credit can take less than a day. You can start the process online and get approved in person for an Alabama title pawn in less than 30 minutes. Borrowers can also receive their emergency cash later that day or by the next business day.

3. Paperwork

Banks require lengthy paperwork to be filled out before getting the money you need. They want a complete work history, proof of income, references, and sometimes an outline of your monthly expenses. 

Once you turn the paperwork in, a bank loan officer may contact you about something else they need, such as last year's tax forms, a Social Security statement, or other government information. 

Private lenders that issue title pawns are different. Their paperwork is simple, and most won’t require extra proof of income or expenses. Every private lender is different, but the similarity is that the critical factor in approving you for a title pawn is the value of your lien-free vehicle title. 

4. Collateral

Since your creditworthiness is the most important approval factor for bank loans, you will likely not need to put up collateral to get approved. Unless you are seeking tens of thousands of dollars, you should be able to get a bank loan without collateral.

That is not the case with title pawns; you will have to put up your lien-free car title as collateral. You will get your vehicle title back as soon as you repay the loan, but the loan provider will keep your lien-free title until repayment is over.

5. Loan Amounts

Borrowers can get approved for much higher loan amounts with bank loans vs title pawns. A traditional banking institution can allow you to borrow anywhere between $1,000 and $50,000 for personal loans, with some even offering up to $100,000. However, your loan amount is directly tied to your credit score, so you may not get approved for that much with poor credit.

Title pawns allow you to borrow up to $15,000 in emergency cash. How much you can borrow depends on your vehicle’s value. During an in-person meeting, a loan representative will inspect your car using a nationally recognized pricing guide to determine how much it is worth and how much you can borrow. Your vehicle’s age, make, model, condition, and mileage will determine its value.

What Is The Title Pawn Approval Process With Bad Credit?

Title pawns are a better bad credit borrowing option, since you can get approved regardless of your credit score. If you wish to get an Alabama title pawn today, Alabama Title Loans, Inc. can help with our simple approval process. You can start online and get approved in person in less than 30 minutes at one of our Alabama stores in Montgomery, Florence, Huntsville, etc.

The following is the title pawn approval process with bad credit:

• Submit your name, zip code, contact information, and vehicle details through our online form
• Answer a phone call from a loan agent to discuss how title pawning works
• Bring your required items (driver’s license, lien-free car title, and vehicle) to the nearest Alabama store
• Have your requirements verified and your vehicle inspected for its value
• If approved, sign your loan agreement
• Receive title pawn cash the same day or the next business day

FAQs About Alabama Title Pawns

Can you use someone else’s car title for a title pawn?

The car title you use for a vehicle title pawn in Alabama must be in your name. If you have a car title with someone else’s name, you must get a title transfer before getting approved for a title pawn.

Do you need to get a credit check for a title pawn?

Alabama Title Loans, Inc. may require a credit check for a title pawn. However, the credit check should not affect your ability to get approved. It will also be a soft credit check, so it will not reduce your credit score.

Can you get a title pawn online?

Online lending options have grown in popularity, with many lenders allowing borrowers to get started online. Alabama Title Loans, Inc. is the same; you can start with our online contact form. However, you will have to complete the process in person.

Get Approved For Bad Credit Title Pawns In Alabama – Borrow Up To $15,000 Today!

Title pawns are a better financing option for those who need fast emergency cash with bad credit. Get bad credit title pawns today with Alabama Title Loans, Inc. Get same-day approval for title pawns with our fast, efficient approval process. Ready for fast financial relief? Fill out our online inquiry form right now and hear soon from a loan representative to guide you through the Alabama title pawning process.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.