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There are many reasons why you’d need to take out an online title loan.  With a car title pawn you can borrow money against the value of your vehicle.  This type of financing is also known as a car title loan or auto equity financing.  A title pawn is not for everyone as they come with very high interest rates.  Applicants will also need to put up their car as collateral to secure the financing.

Title pawns draw their name from the pawn shops that are established all over the country.  When you pawn a necklace or collectible the shop holds the item until you can pay back the loan.  The process is the same with an auto pawn.  The licensed lender will hold onto the pink slip and hand it back when the loan has been settled in full.  Take note, they are not taking possession of the vehicle while the loan is outstanding.  The finance company is holding onto the pink slip which says they’re the owners of the car until the title pawn is paid back.