Know the Difference Between a Title Loan and Title Pawn

Learn About What a Title Pawn Is

There are many people out there that are struggling financially and find themselves in need of some fast cash. If you are someone who is in this situation, it is crucial for you to explore all of the different lending options available to you in order to find the right solution for you. This includes looking into a title pawn in Mississippi.

So, what exactly is a title pawn? It is a type of secured loan that uses the title to your vehicle as collateral. Since your title is used as collateral, you may be approved for this loan even if you have bad credit or no credit.

The terms “title pawn” and “title loan” mean the same thing, but it is essential to understand the difference between pawning an item and a title pawn or loan. For example, in a common pawning situation, the pawnshop will hold onto the item until you have repaid your loan. In the case of a valuable piece of jewelry, that means you won’t be able to wear or possess it until everything is repaid.

That is not how things work with a title pawn. Instead, you will continue to have your vehicle available to you as you repay your loan. That means you shouldn’t have any problems getting to and from work, the grocery store, or anyplace else you need to go during the life of the loan. The only time the lender will take possession of your vehicle is if you fail to make timely payments on your debt.