Car pawn vs microloan

Faced with a financial emergency (a visit to the mechanical workshop, the damaged refrigerator, a university scholarship not awarded to a child ...) many times the word microloan or pawn comes to mind. In recent years, this method of financing has been implemented where the client gets small amounts of credit in a short time of processing.

Prioritize what's important

However, many times these finance companies do not adequately inform you of the cost of the operation, the terms , the interests ... and then surprises arrive if we are only prioritizing the speed of response. Also, the amounts of money are usually small.

Before choosing one option or another we have to bear in mind that the correct choice will always depend on the needs of the moment we are going through. It is not the same that we need money in a short time (unforeseen events) that we need a lot of money (investment), or that we have little ability to pay in the long term (temporary contract).

Microloans VS Car Pawn

Look at these illustrative examples:

  • Ines needs 200 euros to fix a broken part of her car. Your best solution is a microloan if you can afford the repayment in a short time
  • Juan needs 5,000 euros to invest in his business, as he can access conventional financing, his bank is the most comfortable option and with the lowest interest.
  • Laura needs 3,000 euros for an unforeseen renovation in her kitchen. As you have a car in your name less than 12 years old and fully paid, you can put it as collateral for the loan, that is, pawn it. Even though you need it to work, it doesn't matter because you don't have to hand it in, change its name, or pay to drive it *

* Exclusive HeartLand conditions in the sector

Microloan vs car pawn comparison

  • Microloan
  • Little money (up to 300 euros)
  • Return in a short time
  • Speed ​​and little bureaucracy
  • Very high interest
  • Without endorsement
  • Car pawn
  • More money (+ value of the car)
  • Comfortable returns
  • Speed ​​and little bureaucracy
  • Interest adjusted to the client
  • Car as collateral
    • Without delivering the car
    • Without changing my name
    • No rent to drive it

In the vehicle pawn, however, the customer can get more money depending on the value that is given to his vehicle . In addition, as no type of guarantee is required , since our trust is placed in the fact that you pawn your car, the loan is much faster. All this with the advantage that you will be able to continue driving your vehicle , forgetting about the trauma of being left without your own means of transportation.