Title Pawns

What is a title pawn?

• A loan secured by a vehicle title

• A type of insurance policy

• A real estate investment

• A stock market term

Which of the following is typically required to obtain a title pawn?

• Proof of income

• A vehicle title

• A credit score check

• A co-signer

What is the primary risk of taking a title pawn?

• Losing your vehicle

• Increasing your credit score

• Gaining equity in your home

• Reducing your debt

How does a title pawn differ from a traditional bank loan?

• It requires collateral

• It has a longer repayment period

• It offers lower interest rates

• It is only available to businesses

What is the typical interest rate range for title pawns?

• 10-15%

• 25-50%

• 5-10%

• 1-5%

Which of the following is a common use for funds obtained from a title pawn?

• Paying off high-interest credit card debt

• Investing in the stock market

• Purchasing a new vehicle

• Funding a vacation

What is a potential benefit of a title pawn?

• Quick access to cash

• Improved credit score

• Long-term financial stability

• Low interest rates

Which of the following is a common criticism of title pawns?

• High interest rates

• Strict credit requirements

• Long approval process

• Limited availability

What happens if you default on a title pawn?

• The lender may repossess your vehicle

• Your credit score improves

• You receive a refund

• The loan is forgiven

Which demographic is most likely to use title pawns?

• Individuals with poor credit

• Wealthy investors

• College students

• Retired individuals