How Do Loans Using Your Car as Collateral Work?

May 13, 2021 | Mason Roberts

Man got a loan using his car as collateral

All kinds of people look for loans using car as collateral, and that's because it's usually the ideal answer for certain situations. Not only is it softer on your credit report, but it's also more convenient and easier to get than traditional bank loans. However, you're not alone if you're unsure how the process works.

Getting a car title pawn may be easy, but the method sure isn't taught in school. Moreover, many people have been led to believe that it's a bad idea altogether. But refinancing your own vehicle to generate liquid funds for your expenses is always a smart move. Here's why (and how).

5 Reasons You Should Get Loans Using Your Car as Collateral

Granted, all loan types aren't for everybody. So, consider your situation carefully before proceeding. But you should use your car title as collateral for a loan for these five reasons:

1. It Doesn't Mean You Lose Your Car.

In fact, you get to keep possession of your vehicle as long as the loan remains in good standing. The only thing that changes is whose name is on the title. You can still use your car for work, play, and everything else.

2. Your Credit Report Doesn't Take a Hit.

Because the value of your vehicle is the primary determining factor of a car title pawn, you don't need perfect credit to get approved for one. So, even if your score is a 500 and your income is low, you can still get the funds.

3. The Application Process Is Super Simple.

Most of the time, there are only a few steps to complete the process of using your car as collateral for a loan. Since the title already has the most important information on it, you only need to sign a few documents for approval.

4. No Store Visit Is Required.

In some cases, you don't even have to get off of your couch to qualify for a car title pawn. You can get the process started over the phone or by submitting an online form and save time and gas on travelling to the store location.

5. You Can Get Cash within Minutes

Through the right source, you'll get paid right away. Unlike traditional bank loans that require several days for processing, this option provides liquid funds in as little as 30 minutes.

Keep in mind that you must be at least 18 years old to qualify for car title pawns in the state of Georgia. There are a few other stipulations as well, so call ahead or do some research to answer any questions you might have. Either way, this method is much easier than going through a bank and you get a say in the repayment terms too.

Can You Get Loans Using Car as Collateral with No Income?

Yes, you can get a car title pawn in Georgia (and in many other states, too) even if your income is low. Because loans using car as collateral become satisfied by the value of your vehicle, your wages aren't always a major factor. You may be asked to somehow prove your ability to repay the loan, but in most cases, that information won't even be requested.

DID YOU KNOW: You can get approved for a Georgia car title pawn even if your credit score is low or outright non-existent.

How to Get Loans Using Car as Collateral in Georgia

Man with car title pawn cash

There are many perks to living in GA, including the weather, the culture, and the access to easy money in exchange for your car title. That's especially true if you work with Georgia Auto Pawn, Inc. One of our agents will actually come to your location within minutes after you submit the online form. Here's how it's done:

1. Find and Fill out the Online Form on the Website

Go to the Main Page of our website to fill out a short intake application and wait for a call from our representative. Then schedule your appointment to complete the process.

2. Gather the Required Items Ahead of Time to Make Things Easier.

Get ready for the agent's arrival by gathering the following things before they get there:

  • Your vehicle for inspection
  • The lien-free title to that vehicle (in your name)
  • Your driver's license or a government-issued photo ID

3. Sign a Few Papers and Get Your Cash

Let the verification agent inspect your vehicle and determine its value. He will establish the amount you are eligible to get and go over the repayment options with you. If everything seems satisfactory to you, sign a few loan documents and get your cash.

Get Started Today!

Finding loans using car as collateral can be tricky, but getting one shouldn't be, if you apply with Georgia Auto Pawns, Inc. With us, you can pawn your car for cash quickly and painlessly, and those who have tried this way of getting quick cash, appraised its convenience and transparency. Call us today to learn how car title pawns can help you in your current situation or submit an online inquiry to get started.