Why An Auto Pawn Is Better Than a Credit Card

Why should you visit an auto pawn shop in Northglenn instead of opening up a new credit card? If you have one time expenses that you need met, a credit card is a permanent solution to a temporary problem. There are many advantages to getting an auto pawn instead.

What Is an Auto Pawn?

An auto pawn gives you the opportunity to get cash value for your car. When you pawn your vehicle, you still keep your vehicle and can use it to get to work or school. You’re simply pawning the title — the piece of paper that lets you sell the car. Once the pawn loan is paid off, you can then get the car’s title back! 

An auto pawn is based on the value of your car, or rather, your personal equity in it. If you own your car outright, you can easily pawn your vehicle. If you’ve paid down a lot of your vehicle with the bank, you can also get a loan — but only for the amount of its value that you’ve paid off already.

Why Is Auto Pawning Better than a Credit Card?

Sometimes there can be unexpected expenses, such as medical bills, that can cause problems with your finances. When that happens, you need cash fast. Here are some benefits of an auto pawn. 

  • Get cash immediately. A credit card takes some time to open. When it is open, you have to take a cash advance… and you often have limits to it, such as a couple hundred dollars a day. If you have to pay rent, that’s going to be a problem. Many places don’t take credit cards.
  • Pay less for the loan. An auto pawn is generally going to be less expensive than a credit card because it’s a secured loan. Credit cards are personal loans; if you don’t pay the debt, they have to go through the collections process. With an auto pawn, the debt is secured by your car.
  • Get a loan easier. Because an auto pawn is secured with the value of your car, as noted above, you can get a loan easier. For those with bad credit, it’s usually very hard to get a credit card. But an auto loan can be a simple and fast process.

Thinking about visiting an auto pawn shop in Northglenn? You can get started immediately with your car, new or old.