A title pawn can be a foreign concept to many people, especially if they’ve never borrowed money before. Here’s the extensive list of title pawn loan terms you should know, as well as the definition of title pawn itself.

Understanding title pawns can feel difficult at times, but the terms that define your pawn are not as complex as you might assume. In this article, we’ll review all the terms you need to know, including what they are and how you can secure title pawn eligibility with a lending company today.

What Is A Car Title Pawn?

To understand when a title pawn might be an option to consider, you first need to understand the definition of title pawn and the title pawn loan terms associated with this type of funding.

An auto title pawn is a secured loan that uses your car’s title as collateral, letting you access a large lump sum of money to use for personal reasons if you’re approved. Some title pawn terms you should know include 'collateral,' 'lien-free,' and 'identifying information.'

A vehicle title pawn is a borrowing option for people who have ownership of their vehicle outright. There are two types of pawns, secured and unsecured. Secured pawns have some form of collateral at stake which reduces the risk incurred by the lender, while unsecured loans do not.

Title pawn collateral, as you might guess, is secured by your car’s title, allowing you to access larger sums of money for emergency expenses should you be approved.

Glossary Of Common Title Pawn Loan Terms To Know

Here are some of the essential Alabama title pawn terms you can expect to hear when you apply for a title pawn:

• Collateral
• Lien-free title
• Identifying information

Collateral

With this type of loan, your car title serves as the title pawn collateral, which simply means that you’re putting your title at stake to take out the loan.

While this certainly is a significant commitment and should be treated as such, you will reclaim your car’s title once the loan has been fully repaid. You can continue to use your vehicle as you would normally as the loan is being repaid.

Lien-Free Title

Another important title loan glossary term to consider for Alabama title pawns is “lien-free title.” Also referred to as a clear car title, lien-free indicates that there are no other liens or judgments against your car title. Liens are debts on your title that give a third party a legal claim to it under certain circumstances.

To take out a title pawn, your lender must put a lien on your title. As such, you cannot take out a vehicle title pawn if there are unpaid debts on it.

To clear your liens, pay off your obligations to the prior lienholder and have them officially remove the lien from your car’s title.

Identifying Information

Other terminology that’s not as obvious as it appears on the surface is identifying information. Put simply, your identifying information consists of the legal documents you’ll need to prove your identity. To obtain a vehicle title pawn, you will need to confirm that you’re over 18 and have a photo ID that verifies who you are.

A driver’s license is an easy form of ID that satisfies this requirement, but if you don’t have one, you can alternatively use a non-driver’s license, military ID card, or student ID.

Put simply, the card must be government-issued, have your legal name, and display a recent photo of you.

How Alabama Title Loans, Inc. Can Help You Out With An Emergency Loan

If you’re considering alternative cashflow options, such as a title pawn, now that you know and understand title loan glossary terms, Alabama Title Loans, Inc. can help facilitate the process when you are ready to apply.

If approved, you can receive an amount of up to $15,000 that you can use for emergencies. To begin, fill out the online form to connect with a representative from the nearest location.

Sometime after filling out the form, an associate will contact you to go over the details of the loan and review your title pawn eligibility. On the call, you’ll also need to book an appointment so that the associate can inspect your vehicle and the required items. To qualify for a title pawn, you’ll need these items:

• State-issued photo ID
• Lien free title
• Your car for inspection

Meet with the associate at a location you choose or at the nearest Alabama Title Loans, Inc. store location if it’s more convenient, and they will inspect your vehicle and necessary documents to determine how much you qualify for. If approved, review the written disclosures, terms and conditions, and interest rates, before you sign to receive your money on the same or the following business day.

Submit Your Online Inquiry Form For Alabama Title Pawns Today!

Understanding title pawn terms and how they work empowers you to make informed financial decisions. If you find that you need emergency cash, Alabama Title Loans, Inc. is here to help. Start the title pawn process in Alabama by completing the online form on our homepage. Our representatives are ready and waiting to assist you, regardless of your credit score. All types of credit are welcome to apply for this fast cash loan option and can still be approved.

So, if you are in a tight spot and need emergency cash services for a situation you can’t handle Alabama Title Loans, Inc. may be able to help you out.

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