Title loans are a great way to get access to money quickly, also called pawn loans since you borrow money by using your car title as collateral. Title loans rates in Iowa can range from 5% – 30%.
In a title pledge, or title pawn, a borrower gives their title to a lender as collateral for a short-term loan. The title is held by the lender until the loan plus interest is paid back in full.
Title loans are also sometimes called “pawn loans.” When you agree that your vehicle will be used as collateral for the loan, you receive the agreed-upon amount of money from the title lender. In return, you sign over your car title and allow them to keep it until you pay back the total sum. If you default on your loan – meaning that you do not pay it off in time – they have the legal right to seize control of your car and sell it at auction to recoup their losses.
These types of title loans are available in Iowa:
Car title pawns are unsecured, which means you don’t need to offer any other collateral for the title loan. This is an option if you own your car outright or if it’s paid off. You’ll receive all of your money right away and then pay it back in installments over time. If you default on your payments, however, you will lose your car.
Lenders may also give out secured title loans when borrowers need more than $100 but less than $1,000. They require borrowers use another form of collateral such as a savings account or stock certificate. If you default on the loan, they can use your collateral to pay themselves back.
A gap title pawn is similar to an unsecured title loan when offering up your title as collateral for money. The difference is that in a gap title pawn, you offer up the vehicle’s current market value along with the lien. This means that if you need quick cash and have equity in your car, this may be an option for you. Each company will set its maximum amount of money it will lend against a title and interest rate.
Title loans in Iowa typically range from $50 to $1,000, and you need to be at least 18 years old and a legal resident of the state. You’ll need your title or lienholder title (meaning if someone else still holds title to your car), proof of income, photo ID, and a clear title on the vehicle itself.
If you don’t have all those things, some lenders may allow for other types of collateral as well as your signature on an agreement that will enable them to repossess your vehicle if you default on the loan agreement.
When you agree to take out a loan in Iowa, you will receive all of your money within 24 hours after applying online. However, this is not an