title pawn places

Before Securing a Title Pawn, Ask Yourself the Following Questions


Title pawns, or title loans, can provide quick cash, but it's essential to be fully prepared before getting one. Start by asking yourself some vital questions. What is your repayment plan? Do you own your car outright? It's also important to define the specific problem you're trying to solve and strategize to prevent its recurrence. 

Before getting a title pawn, consider the following: Your repayment plan, car ownership, clearly defining the problem you're trying to solve, and coming up with a strategy to prevent it from happening again.

What’s your plan to pay it back? What’s the specific problem you’re trying to fix? How will you prevent the same situation from happening again? All these are important questions to ask yourself before you take out a title pawn. Jumping into any situation before you’ve fully thought through the consequences is a disaster waiting to happen, but luckily we’ve got the answers to the questions you should be asking.

What’s My Plan to Pay it Back?

Look before you leap is a common saying for a reason, and it’s because it’s good advice. Far too often we reach for the nearest solution to a problem without thinking about what comes next. This can have a potentially disastrous blowback later when the devil wants his due and you’re not prepared.

With any type of loan, it’s important to have a concrete plan upfront for how, and when, you’re going to pay it back. Interest means that the longer you wait to pay them back the more you’ll have to pay in total. The best way to minimize any interest payments is to draw up a budget beforehand to identify where you’re going to get the money to pay back the loan at each step in its repayment.

Do I Have A Car I Own Outright?

This is a simple, but necessary question to ask yourself before taking out a title pawn. Because title pawn places use your car as collateral for your loan, the value of your car is what decides the amount of your loan. This takes into account things like the make and model of your car, along with its current conditions.

All three of those factors are meaningless if you don’t own your car outright though. This is why one of the required items for a title pawn is the ‘lien-free title’ to the car you’re taking a title pawn out on. A lien means essentially that someone else also has a claim to the value of your car, meaning that you don’t actually have the ability to promise it as collateral.

What’s the Specific Problem I’m Trying to Fix?

It’s a normal reaction when beset with a financial challenge or three to start muddling them in your head and start to think of them as a single oppressive cloud over your head that can be banished with the light of some fast cash. Unfortunately, muddled expectations can lead to unsatisfactory results, and you may find that cash can’t fix all the problems that you face, or that you end up spending the money on minor problems while ignoring the major ones you face.

The best way to avoid this situation is to list out before you go to a title pawn place the specific problems you face, and exactly where you’re going to allocate the cash you get. For example, if you’ve just lost your job, list out your expenses and then mark the specific ones you’re going to spend your title pawn on when you get it. This will keep you from wasting the money once you get it, and also ensure that you come away from the situation with your problem actually fixed. Specificity is tiring but undeniably important.

How Will I Prevent This From Happening Again?

This may seem like getting a step ahead of yourself, after all, you’re still actively trying to right the ship at this point, but it’s still worth it to take a minute before you take out a title pawn to try and figure out how you’re going to avoid the same situation simply happening again in the future.


representative handling title pawn cash


The best way to do this is to sit down and create a budget for the future. Analyze your income and expenses, and then see how much you can put into an emergency fund each month. Though you may not be able to put in much, every little bit will help and add up over time so that the next time you’re hit with a financial emergency you’ll be able to handle the situation.


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

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.