If you find yourself needing extra cash without many other items for collateral, you may consider pawning your car. Many people don’t know that this is an option, and they may be wary of this form of pawn loan. This guide explains what you should know before you pawn your car and what you’ll need to bring to the pawn shop.

How Does an Auto Pawn Loan Work?

Like other pawn loans, a car will act as collateral for a short-term loan. This can be helpful if you need funds quickly for medical expenses or other emergencies but don’t have high enough credit to obtain a loan elsewhere. The loan term can range anywhere from a few weeks to a month or more, and interest rates are usually lower because the car grants security on the loan. If you can’t repay at the end of the term, you may have the option to ‘roll over’ the loan into a new agreement with higher interest.

If you fail to repay, the car will be repossessed by the pawn company. Keep in mind that the loan amount will be based on the car’s value, so taking in a beater that you could afford to lose may not be sensible. Once you’ve pawned the car, the pawn shop will keep the title and car until you’ve repaid the loan.

What Do You Need to Bring?

The pre-approval process for pawn loans is easy. Simply bring the collateral you’ll be pawning, your state-issued driver’s license that shows you are 18 or older and the title to the car. The vehicle must be in good condition, and you must legally own it. Some lenders may also require income or credit score information, but this is not always the case.

Get your cash quickly and easily when you visit Platinum Pawn Tampa in Florida. Their staff makes it easy to secure a pawn loan using the cars, jewelry, guns, electronics, and instruments that you own. To learn more about the pawn process, you can visit them online. With any questions, call (813) 443-4622.