Caught in a Bind? A Title Pawn Could Help
September 18, 2020 | Daniel Dewitt
When financial emergencies hit, it can be hard to know where to turn. Often if you’re in the position where a big unexpected expense is an emergency, then you also don’t have any resources to help you.
But no matter how alone you may feel, there’s always one resource you can turn to: Alabama title and pawn loans. Title pawns are a form of fast, convenient short term lending that’s based around your car. Essentially, title pawns allow you to unlock the value of your car to cover a short term loan while still letting you drive your car as you would normally.
What exactly can you use title pawns for? And what other methods are there to get you out of a financial bind? Those two questions are what we’re here to answer today.
Why A Title Pawn?
What makes Alabama title and pawn loans so useful is threefold: their versatility, speed, and convenience. In terms of versatility, once you leave a title loan store with your cash, there’s no restrictions on how you can spend it, or where. Unlike other loan types that require you to announce beforehand on what you’re going to spend them on, a title pawn trusts you to know what’s best for your own life and financial situation.
On the speed front, title pawns are easily the fastest type of loan at your disposal. Often you can step in and out of a title pawn store all within a half hour, the cash you need in hand. Compared to other types of loans whose approval process can span weeks, if not months, this speed is unprecedented. And if there’s one thing that you need when dealing with a financial emergency it’s speed.
Well, speed and convenience. Which is where the third main advantage of a title pawn comes into play. Unlike other loans that require a small mountain of paperwork to be dug through and signed before you can get the money you need, with a title pawn you only need three simple items: a state issued I.D. like a driver’s license, the lien-free title of your car, and the vehicle itself.
The reasons behind each of the three are simple: the state issued I.D. to verify you are who you say you are, the lien-free title to make sure you and you alone are the owner of your car and have the ability to use it as collateral, and the car itself so that an inspector can determine how high of a loan you’ll be eligible for based on it’s condition and make.
While Alabama title and pawn loans are your best option to get out of a bind, they aren’t the only ones. Another is a personal loan from a friend or family member, but that has the distinct down side of mixing business with the personal, and makes that relationship vulnerable to bitterness and conflict.
If you do decide to go down this route, be sure to have it in writing how much you’re borrowing, for how long, what the repayment schedule looks like, and at what interest rate. This will strip any ambiguity from the process and at least make sure you and the loaner are on the same page.