When you think of a standard loan from a lending company, your approval or denial is likely based on your credit score. If you are someone with poor or no credit, that means you may not be able to secure the loan you need. Thankfully, a title pawn in Mississippi, opens a new venue to get the necessary funds without worrying about credit scores.
So how does a title pawn work? Rather than using your credit score to secure the loan, you will use your vehicle’s title as collateral in exchange for a loan. These loans are usually for a 30-day term, and you are expected to repay the loan balance in full plus the interest to redeem your title. The loan company may also allow you to extend your title pawn loan for longer as long as you are making the required minimum payments on time.
So, now that you know what a title pawn is, why would you want to choose this lending option over a cash advance or pawn loan? The answer is that you can usually borrow more money at a lower interest rate with a title pawn. Additionally, unlike other pawn loans, you are able to keep your car during the payment timeframe. Finally, title pawns do not rely on—or impact—your credit score. This makes it much easier for you to get one as long as you own the title to your vehicle.