One major thing people who decides to pawn their car keep worrying about is if they can pawn their car and still drive the car. The fact is that pawning your car will not stop you from driving your car as all measures to make sure you are able to drive your car when you get a title loan are already in place. Only your car title loan is taken possession of by your lender while you pay off the loan and as soon as you repay the loan, your car title is returned to you.
Pawning your Car Title and driving Your Car
Pawning your car title and continue driving your car: the only thing is that you will be required to submit the title to a car that you own free and clear without any lien or restrictions. Your lender places a lien on your title just to enable them manage the risk in case a borrower absconds or defaults. The lien placed on your car by your lender gives them the audacity to repossess your car and sell it off to recoup the money borrowed.
Hence, pawning your car will never prevent you from driving your car, it is just a control measure put in place by your lender to manage their risk in case of any form of eventuality. You can drive your car while you pay off the loan. The only thing that may put you at the risk of losing your car is when you default, miss payment dates or fail to repay your loan.
If any of these do not happen, you are guaranteed that you will get the title to your car as soon as you pay off the loan because your lender will remove the lien on your car title and you get back the title to your car.
Advantages of Pawning Your Car Title to Obtain Loan
1. It does not require credit checks to see whether you have a good credit history or whether you have poor credit rating.
2. It is easy, fast, and readily accessible.
3. You can apply online or visit your lender in their offices.
4. Interest rates are reasonable.
5. Approval rates are high. Hence, you can be guaranteed that you will be considered when you apply for a car title loan.
6. Defaulting does not reflect on your credit history as they are not reported to the credit bureaus.
7. It does not require any proof of employment.
8. Your money can be credited directly into your bank account.
Going by the advantages highlighted above, it can be said that pawning your car is a method you can explore when you need to get quick and fast financial assistance to sort out your emergency needs. The process is seamless, easy, and you are not needed to have a top credit rating to take advantage of this method of getting loan from lenders around you.