The Glossary Of Alabama Title Pawn Terms To Know
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 terms you should know, as well as the definition of title pawn itself.
While title pawns can feel difficult to understand at times, 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 about title pawns, including what they are and how you can secure one.
What Is A Title Pawn?
In order to understand when a title pawn might be an option to consider, you first need to understand the definition of title pawn.
A 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 own 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 pawns, as you might guess, are secured by your car’s title, allowing you to access larger sums of money for emergency expenses should you be approved.
Title Pawn Terms To Know
Here are some of the essential Alabama title pawns terms you can expect to hear when you apply for a title pawn:
- Lien-free title
- Identifying information
In a title pawn, your car title serves as the 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.
Another important term to consider for Alabama title pawns is “lien-free.” 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.
In order 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.
Another term 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. In order 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
If you’re considering alternative cashflow options, such as a title pawn, then Alabama Title Loans, Inc. can help facilitate the process. 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 get connected 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 eligibility. On the call, you’ll also need to book an appointment so that the associate can inspect your vehicle and the required items. In order 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 you are approved, you may receive your money as soon as the same day, but if not, then you will receive it the following business day.
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There are lots of terms to navigate when considering your financial resources, but now that you understand how title pawns work and the terms associated with them, you’re well aware of your emergency cashflow options and when they can be of use.
If you need emergency cash for a situation you can’t handle, then Alabama Title Loans, Inc. can help you recover if you’re approved for one of our loans.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.