4 Times When a Car Pawn Service Can Help You

4 Times When a Car Pawn Service Can Help You

car-pawning

If you’re in need of funds to solve a cash flow problem or to handle unforeseen expenses, pawning your car could be the right solution for you.

Taking a loan against the value of your car is a fast and easy way to get a lump sum of cash. And because your vehicle is used as collateral for the loan, you can qualify for a car title loan regardless of your financial history, credit score or employment status.

Here are four situations where pawning your car could help you.

When you’re unemployed

There is a degree of risk for banks and other institutions that offer unsecured loans. This kind of loan is granted based on the borrower’s “creditworthiness” – that is, on an informed guess about whether or not the borrower will pay back the loan.

If you’re unemployed, it can be exceedingly difficult to convince an institution like a bank that you’ll be able to repay a loan. Even if you have another source of funds, banks are accustomed to checking individuals’ pay slips as part of their loan approval process.

Unfortunately, this means that it’s difficult to get an unsecured loan if you’re unemployed.

However, if you have a fully paid up vehicle that’s registered in your name, you can easily obtain an asset-based loan against its value, regardless of your employment status.

When you have short-term cash flow problems

If you have short-term cash flow problems, for example because of delayed receipt of payment to you or your business, you can get cash fast by using a paid-up vehicle as collateral to secure a short-term loan.

With this type of loan, there’s no lengthy application process and no income verification. You could have the funds you need in your account on the same day that you apply for the loan.

When you have a poor credit rating

A poor credit rating will most likely prevent you from qualifying for an unsecured loan, at least at a reasonable interest rate.

However, your credit rating does not influence your eligibility for a short-term, asset-based loan. This kind of loan is secured using an asset you own, like a vehicle, as collateral.

This means that you don’t need a good credit rating to pawn your car.

When you’re facing unforeseen expenses

Life is unpredictable, and it’s just not possible to budget for every situation. For example, you might face unforeseen expenses for medical treatment of you or a family member, for vehicle repairs or for a funeral.

The application process for a traditional bank loan takes time. In contrast, applying for an asset-based loan with Pawn My Car is quick and easy – typically you’ll have access to funds on the same day you apply.

Simply contact us with details of your vehicle, and we’ll make a provisional loan offer on the spot.

Complete an application now