Pawn Loans vs. Auto Title Loans In Mesa

Pawn Loans vs. Auto Title Loans

Pawn Loans vs. Auto Title Loans
Pawn loans and auto title loans are common options for those who have poor credit or who don’t want to jump through hoops to get the financing.
Mesa, Arizona

If the air conditioner breaks down or you lose work and don’t have the savings to cover your lost income, you may find yourself scrambling for cash fast. In Arizona, there are a lot of options for personal loans, but unless you have great credit, you may not quality. Pawn loans and auto title loans are common options for those who have poor credit or who don’t want to jump through hoops to get the financing.

A pawn loan is a much better option than an auto title loan, however. Here’s what you need to know about how the two compare:

Auto Title Loan

You may qualify for an auto title loan if you own your car free and clear. The loan gives you a portion of the value of your car, and you have to hand over a set of keys and the title. If you default on the loan — or even if you miss a payment — the lender may be able to repossess your car or even sell it to collect what you owe.

The amount you can borrow is usually capped at no more than a few thousand dollars, but the interest rate can be excessively high. Some states have significantly lowered what auto title loans can charge, but the rates are still high. For example, Montana passed a law lowering interest rates from 400 percent per year to 36 percent.

Even if the interest rate seems “low” — like 9 percent per month — it can still add up to a high yearly rate. That 9 percent per month is actually 108 percent per year. Edmunds says that a $1,000 car loan could be worth $1,250 at the end of the 30 days. Typically, most borrowers can’t repay the loan in such a short term, so they roll it over. Edmunds says the average auto title loan is rolled over about eight times, costing $3,000 for the original $1,000.

Pawn Loan

A pawn loan is a much better option for short-term financing. Like with a car loan, you bring in an item of value that you own as collateral. You can pawn a car, or you can pawn anything from jewelry to sports equipment. The item is held on site until you repay the loan.

The major advantage of a pawn loan over an auto title loan is that it is available for a longer period — usually 90 days — and has much lower interest rates. You’ll actually be able to pay off your pawn loan with no problem. If you don’t, the only thing that will happen is you will forfeit your item.

Pawn Now in Arizona has some of the best interest rates for a pawn loan in Mesa. We can make small or large loans, and our facility can store even large items safely and securely. Visit us today to learn how you can get the money you need without paying exorbitant interest rates.

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Pawn Now

Pawn Now Phoenix – 85043
691 W. Baseline Rd.
Phoenix AZ 85043
Phone +1 602 276-1664

Pawn Now Phoenix – 85022
14601 N Cave Creek Rd.
Phoenix AZ 85022
Phone +1 602 765-4444

Pawn Now Phoenix – 85019
4135 W. Indian School Rd.
Phoenix AZ 85019
Phone +1 602 442-2160

Pawn Now Mesa – 85207
8151 E. Apache Trail‎
Mesa AZ 85207
Phone +1 480 964-6666

Pawn Now Mesa – 85210
1145 S. Mesa Dr.
Mesa AZ 85210
Phone +1 480 668-1009

Pawn Now Chandler – 85225
1731 N. Arizona Ave.
Chandler AZ 85225
Phone +1 480 821-7296

Pawn Now Apache Junction – 85120
900 W. Apache Trail
Apache Junction AZ 85120
Phone +1 480 288-7296

Pawn Now Mesa – 85204
361 S. Lindsay Rd.
Mesa AZ 85204
Phone +1 480 777-7771

Pawn Now Scottsdale – 85257
7841 E. McDowell Rd.
Scottsdale AZ 85257
Phone +1 480 300-4653

2018-01-08T17:27:45+00:00 December 10th, 2014|Categories: Arizona, Mesa|0 Comments