Auto Pawn Loans

Some people often interchange the terms “auto pawn loan” with “car title loan”, thinking these two types of loans are the same. However, there is a difference between the two.

First, these two loans are both secured loans in a way that you are putting your car as collateral against your loan. In the event that you default on your loan payment, your lender can seize your car as payment for your loan. The difference is that an auto pawn loan requires you to provide your car with the title of the car. Both will be un their possession until you are able to pay off your loan in full.

On the other hand, car title loans, as the term suggests, only require you to provide your car title so you can continue using your car. However, you might also need to show the car to your lender for a quick inspection on the car’s condition.

Both loans are also fast loans which you can get in as fast as 24 hours. However, the repayment period may vary per lender. Some lenders only offer a term of 30 days for auto pawn loans, which makes such loan an option for temporary financial problems.