People who need an urgent boost in their finances have two options available to them – pawn something they own or use their car equity loan Markham Ontario to borrow money. You can then use the cash for anything, like pay your medical or utility bills. But many borrowers wonder about the differences between these two loans. In this article, we’ll break down their similarities and what sets them apart from each other.
A Quick Comparison of Pawning and Title Loans
- Type of Collateral: Both loans require collateral. Pawnshops accept anything of value, from jewelry to gadgets. Title loan companies require borrowers to pledge their vehicles.
- Documentation: Compared to banks, lenders offering car collateral loans have minimal requirements. Borrowers would only need to show their valid IDs, the car’s title, proof of income and residence. Pawnshops only ask for a valid ID.
- Interest Rates: You’ll usually get a lower interest rate for title loans. Lenders can give rates as low as 1.5%, depending on the state. Meanwhile, pawnshops typically have a 25% interest rate.
- Loan Duration: These are both short-term loans. Title loans have a longer duration, with a contract set anywhere from 30 days to more than a year. Meanwhile, pawnshops will only give you six months at most.
- Retaining Possession. When you pawn items, you’ll have to leave the item in the shop. With title loans, the only thing you’ll surrender to the lender is the car’s title. The vehicle remains with the owner.
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Get the best deals with Canadian Equity Loans. The company offers loans as high as $50,000. They also have low-interest rates and accept early payouts without penalties. Their fast approval process means you get the money you need within the day. Log on to their website to apply or call their toll-free number at 1-844-586-6311.
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