| What can you do if you need cash urgently, but | | | | However, it is important to be realistic and assess |
| don't have good credit, or think that getting a | | | | your ability to repay the loan within the stipulated |
| bank loan would be a hassle? A way out is to | | | | time. If you are not sure, don't pawn your car. |
| pawn your car. | | | | Always remember that you stand to lose your |
| In a car pawn, a car is used as collateral to | | | | car for any default in payment. |
| receive a loan. The owner of the car gives his | | | | • Generally, a much higher interest is charged |
| title to the lender as assurance that he will pay | | | | for a car pawn loan than a banking institution |
| back the cash advance. The car is held, along with | | | | would charge for a loan. |
| the title, by the lender until the loan is paid. Also, in | | | | • Not all vehicles are eligible for a car pawn |
| a car pawn, the amount lent is determined by the | | | | loan. If the car has high mileage, poor engine |
| resale value and condition of the car. Easy enough, | | | | performance, or damage to the external body, |
| right? | | | | this will affect the loan amount offered. |
| But it's important that you know what you're | | | | • No loan shark will hound you for the money |
| getting into before you sign on the dotted line. | | | | you owe. However, if you don't pay the money, |
| These are some things you should know before | | | | you will lose your car. It's that simple. |
| pawning your car: | | | | • You stand to forfeit the car if the car pawn |
| • Bad credit will not necessarily be a deterrent | | | | loan is not paid, even though the actual value of |
| for a person applying for a car pawn loan because | | | | the car may be higher than the amount you owe. |
| the loan will be covered by the value of the car. | | | | |