If you live in Atlanta, you know that emergencies are certain in life. You never know when an unforeseen circumstance may show up. This is where loans can come in handy. Fortunately, borrowers now have a multitude of options when choosing financial products. Title loans are one of them.
There are many people who cannot figure out the difference between title loans and title pawns in Atlanta. In fact, most of them believe both to be same. This article will outline the differences between both the types.
Title Loans
A title loan is one of the most popular loans all across Atlanta, GA and America. It is a way to get quick financing (in the form of cash) by using your vehicle’s title as collateral. A perfect credit score is not needed for an approval of title loan. Lenders may inquire into your credit history but this is only to make sure the borrower is not bankrupt.
When a borrower applies for a title loan, the title of the car needs to be dropped along with a spare key. However, the borrower can keep the car to drive around even before the loan has been repaid. Additionally, many lenders now offer online title loans for the convenience of borrowers. However, some of these lenders are no more than affiliate sites selling your information. So if you opt for a title loan online, make sure to verify that the lender is legitimate.
Title Pawns
Title Pawn Atlanta is basically a loan where the same principles are followed as when you would pawn something. For instance, the vehicle needs to be handed over in exchange for money. The amount of money received depends on the value of collateral. It may be a great option if you own multiple cars and you don’t mind compromising one to get emergency cash.
The difference
The biggest difference between both the loans is that while you only need to provide a proof of ownership for both the loans, only in title pawn you are required to hand over the car, or whatever collateral you are relying on. This is the reason why people prefer title loans over pawn loans. The additional benefit of using a car title loan is that you will be able to drive your vehicle even if the loan is outstanding.
This is the only difference between both the loans. A good credit score is not needed for both the types. However, one thing to take into account is that these loans are not free. It comes with a considerable interest rate that needs to be paid within the stipulated time. One must resort to either of the loans when in absolute necessity.
The bottom line
There is a multitude of services offering title pawns and title loans in Atlanta. People have come across reliable financial assistance in most of the cases, however, there are some factors that must be taken into account before selecting a loan provider. Make sure it is a certified lender that offers efficient services. It is imperative to look into the customer assistance they provide. Also look into different rates and go for the best option. Also make sure there are no hidden fees or it will cost you a great deal of money in the long term. Consider these factors to get the best package.
