You might think that pawning something as valuable as a car or another vehicle is difficult, risky or even potentially illegal. You may also think it entails a slow or complicated application process.

The good news is that these are all misconceptions. Car title loans are actually quick and easy to obtain. And with accredited lenders like Crown Auto Pawn, using a vehicle to secure a loan doesn’t involve dealing with shady characters or taking risks with your personal safety.

Here we debunk seven of the most common myths about pawning a car in the UK.

The application process is difficult…

Because many people aren’t familiar with car title loans, they assume that the application process is difficult. The truth is, the application process couldn’t be much simpler. As long as you’re the legal owner of a fully paid vehicle and have a copy of your ID, proof of residence and the original registration certificate for the vehicle on hand, you can apply online within minutes.

Interest rates are too high…

Reputable lenders, like Crown Auto Pawn, comply with the interest rates specified in the FCA. Make sure you deal only with an accredited pawnbroker though, or you could become a victim to unscrupulous lending practices, including exorbitant interest rates and other fees and penalties.

You need a good credit rating to qualify…

Many lenders, such as banks and other financial institutions, will not approve a loan if you have a bad credit score. That’s because they use credit ratings to “guess” how likely clients are to pay back loans.

When you pawn your car, however, the value of the car serves as collateral for the loan. That means the lender doesn’t have to depend on guesses, or assume a comparable level of risk.

It takes a long time before you get your money…

Some people think that pawning their car will be more of a hassle than applying for a payday loan. But the truth is that you can secure a loan against the title of your vehicle in less than an hour. And often, you can have access to the funds on the same day, provided you have the necessary paperwork.

Car title loans are hard to repay…

Car loan payment options in the UK range all the way from 1 to 36 months, depending on who you take a loan with. Many lenders also offer the option of renewing the loan agreement. That way if you are unable to make payment, you can buy some time.

Car title loan companies are unfair to borrowers…

Reputable businesses that offer car title loans will comply with the terms of the FCA, which is in place to protect the interests of consumers.

The lender wants to resell your vehicle…

Car title lenders don’t benefit if you fail to repay a loan. They don’t want the extra effort or risk of having to sell vehicles to recoup losses. Any reputable lender will discuss the terms and conditions of a loan with you to make sure that you understand the payment plan.

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