Friday, December 13, 2013

The Difference Between Car Title Loans and Title Pawn Loans Atlanta

There are a lot of people who can't tell the difference between car title loans & car pawn loans in Atlanta. In fact, there are even some people who believe both of them to be the same. But this is not at all true. In this article I am going to help you figure out the difference between both these types of loans and what better way of doing so than by explaining what each of them are... First let's take a look at car title loans. These loans are basically loans where you use the equity of your car for collateral. The only reason it's called a title loan is because you will need to drop in the title of your car as well as a set of your keys with the lending company. You can still keep your car and drive it around even before returning the loan. 

Now let's see what a pawn loan is. It is basically a loan where you follow the same principles as you would when you pawn something. You will hand over your car in exchange for money. The amount of money you can get will depend on the cost of your vehicle. See for other reference. So you see, the biggest difference between both these types of loans is that while you will only need to provide proof of ownership for a title loan, you will physically need to hand over your car for a pawn loan. I guess you have pretty much figured out why people prefer going for title loans instead of pawn loans. The additional benefit of being able to drive your vehicle even while you have taken a loan against it is clearly enough incentive to go with a title loan for potential borrowers. Now that you know the difference between both these types of loans, you have two easy ways of getting quick cash whenever you need it. For either of these loans all you need is a car and proof of ownership. Your credit scores are of no consequence for taking either of these loans. In either case, lending companies have sufficient collateral to not be worried too much about getting back their money. After all, they technically have your car until you pay them back in full and in the case of car pawn loans they actually have your car. Just one thing that you should note about these loans is that they aren't free. You should only take these loans if you absolutely need them and not for any and everything. You will have to pay interest on every penny you take and the longer time you take to repay the loan, the more you will have to pay. Be careful when it comes to either of these loans.