Title Loans vs Pawn Loans
Both are secured short-term loans. The collateral changes everything.
| Title Loan | Pawn Loan | |
|---|---|---|
| Collateral | Vehicle title | Physical item (jewelry, electronics) |
| Amount | $1,000 – $5,000 | $25 – $300 |
| Term | 30 days | 30 – 90 days |
| APR | ~300% | 60% – 240% |
| Default consequence | Lose your car | Lose the pawned item |
Pick a pawn loan when
You have an item you can live without and need a small amount fast. The downside is bounded — you only lose the item.
Avoid title loans when possible
One in five title-loan borrowers loses their vehicle. If your car is your only transport to work, the risk almost never justifies the cost.