
<p>In 2022, Americans have an average of <a href="https://www.cnbc.com/2022/05/21/americans-now-have-an-average-of-9000-dollars-less-in-savings-than-in-2021.html">just over $62,000</a> in their savings accounts, which is down from $73,100 in 2021. You might not have that much saved up, and to make matters worse, you&#8217;ve quickly drained your savings due to emergencies and unexpected costs.</p>



<p>Another emergency&#8217;s popped up, and you barely have any money left. In this case, a car title pawn might be an option.</p>



<p>What is a car title pawn? It&#8217;s where you borrow money by using your car title as collateral.</p>



<p>Read on to learn more about the pros and cons of getting a car title pawn.</p>



<h2 class="wp-block-heading"><strong>Pro: There&#8217;s No Credit Check</strong></h2>



<p>If you don&#8217;t have good credit, then it&#8217;s hard to get loan approvals. But because you&#8217;re offering up your car title as collateral, your credit score won&#8217;t matter here!</p>



<p>As a result, you won&#8217;t have to go through a credit check nor will you have to go through the disappointment of rejection.</p>



<h2 class="wp-block-heading"><strong>Pro: Approval Is Quick</strong></h2>



<p>When you need cash, you need it fast. Even if you have good credit, a traditional loan can take days or even weeks for approval.</p>



<p>If you can&#8217;t afford to wait, then a car title pawn can be a lifesaver. Some lenders can approve you in 30 minutes or less, so you&#8217;ll have money to pay off that emergency right away.</p>



<h2 class="wp-block-heading"><strong>Pro: You Can Keep Your Car</strong></h2>



<p>Just because you offer up the vehicle title as collateral doesn&#8217;t mean the lender keeps your car. While you&#8217;re repaying the loan, you can still keep and drive your vehicle, so you can continue life as normal. You won&#8217;t have to worry about arranging for transportation to and from work and other important things.</p>



<h2 class="wp-block-heading"><strong>Con: Interest Rates Can Be High</strong></h2>



<p>Because lenders are giving money to people with poor credit, they&#8217;re taking on a bigger risk. To compensate for that, they&#8217;ll have very high interest rates.</p>



<p>As long as you make payments on time and pay off your loan quickly, this shouldn&#8217;t affect you too much. But if you fall behind, it can add up.</p>



<h2 class="wp-block-heading"><strong>Con: You Might Lose Your Car</strong></h2>



<p>In the worst-case scenario, if you fail to repay your loan, the lender can take your vehicle. So you&#8217;re unsure of your finances, it may be too big a risk to take, especially if it&#8217;s the only car in your household.</p>



<p>Again, so long as you stay on top of payments, this won&#8217;t be something to worry about.</p>



<p>If you still have questions, <a href="https://georgiatitleloans.com/how-title-loans-work/">this guide</a> explores car title pawns more.</p>



<h2 class="wp-block-heading"><strong>A Car Title Pawn Is a Viable Option</strong></h2>



<p>When you need cash in a pinch, a car title pawn is a viable option.</p>



<p>It&#8217;s true that interest rates can be high and you might lose your car if you fail to make payments. But if you&#8217;re responsible and confident about repayments, then this type of loan can make a huge difference in your life.</p>



<p>Read more of our blog posts to find out more about personal finance.</p>

The Pros and Cons of a Car Title Pawn
