Is your low credit score making it hard to get a loan? Are banks and traditional lenders constantly turning you down? You’re not alone—many people in Georgia struggle with bad credit, but that doesn’t mean they don’t have title pawn options for poor credit.

This article will explain how title pawns work, especially if you don’t have good credit, and why these bad credit loans could be the right choice for your financial needs.

How Do Title Pawns Work For Those With Poor Credit?

Title Pawn Basics: Emergency Title Loans For People With Bad Credit

Millions of Americans have poor credit, but even with a low Experian or FICO score, you can still apply online for fast cash with title pawns and borrow a max amount of up to $15,000. That’s because title pawns are a type of secured loan, meaning you offer your car title as collateral instead of relying on your credit score. Because of this, a customer borrowing with secured loans for low credit scores is less stressful than applying for traditional bank loans that rely heavily on personal credit.

What Makes Title Pawns Different Than Other Loans?

Before approving a loan, lenders have to consider their credit risk or the chances that the borrower will not pay back the loan. There are two ways of managing their risk, which correspond to two types of loans: unsecured and secured.

Unsecured loans are loans granted based on creditworthiness. The borrower has established a track record of paying bills and credit cards on time, does not have a lot of accumulated debt, and has many years of experience taking out different kinds of credit and paying it off.

Secured loans are funded based on collateral, which is any property of value that serves as a form of security. This type of loan may require a look at your credit report but is less dependent on your credit score.

Title pawns are secured loans where you offer the car title as security for the loan. During the duration of the loan, a lien is placed on the title. A lien means a legal claim to retrieve the property if the borrower defaults. It is immediately lifted when the loan is paid off.

Can You Still Use Your Car With Title Pawns?

There is an ongoing misconception that you surrender your car when you get a title pawn—largely because of the word “pawn” and how it’s associated with pawn shops where you surrender your jewelry, watch, or other personal property and only get it back after paying off the loan account.

This is false and comes from not knowing how title pawns work with bad credit. A lien is a legal claim if the loan agreement is not kept. If you make the payments on time, you can continue using your car when you get fast cash with title pawns.

Simple Requirements For Title Pawns For Bad Credit

When you understand how title pawns work with bad credit, you can also realize why it is faster, more convenient, and more accessible for people who search for loans but have a hard time qualifying.

Since title pawns do not require extensive credit checks, it does not have the strict income and employment criteria of other types of loans.

For example, banks will usually refuse loans to people who have irregular or seasonal income or get their money from non-income sources like pension, alimony, government aid, or family support. With pawn loans like this, it doesn’t matter what kind of job or income source you have, as long as you can pay off the loan.

The Vehicle Title Is The Most Important Requirement

As explained in how title pawns work, the basis of approving a title pawn is the collateral or the vehicle title. So, you have to check if your vehicle title meets the following required items:

• The vehicle title must be lien-free. This means that no other person or organization has a legal claim on the vehicle. It is not being used as collateral for another loan, it is not being disputed in court, and there are no judgments against it.
• The vehicle title must be registered under your name. Only the legal owner of the vehicle can use it as collateral for a title loan. If the title is not under your name, you need to go to the local DMV to have it transferred to you.
• The vehicle must already be fully owned. If you are still paying off the car loan, the bank still has a lien or legal claim to it because you still owe them the remaining car payments.

FAQs About These Bad Credit Loans:

• Can I apply for a title pawn with no credit? Yes! Title pawns are perfect for people with no credit or bad credit, as they are based on your vehicle's value.
• How long does it take to get a title pawn? You could get approved and receive cash on the same day if you meet all the requirements.
• What if I can't repay my title pawn? Customers should contact their lender to discuss extensions or restructuring options. Failing to repay your loan could result in losing the car used as collateral.

Get Started On Your Title Pawn Today!

Georgia Auto Pawn, Inc. makes it easy for people with bad credit to get the cash they need with title pawn options for poor credit. With a simple application process, valid proof of identity, and other requirements, a title pawn could be your best option for quick cash regardless of credit.

Contact us, visit a store location, or fill out the online inquiry form to find out more information about title pawns for bad credit! Our loan representatives are waiting to help you access the fast cash loan you need today! 

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