Title Loan Documents for Applications If you have bad credit, you know how tough it is to get a loan. When you need money, your choices are usually limited to three tasteless options: begging family members, pawning your things and getting a payday loan for a hundred bucks or so. But there’s a fourth option […]
Title Loan Documents for Applications
If you have bad credit, you know how tough it is to get a loan. When you need money, your choices are usually limited to three tasteless options: begging family members, pawning your things and getting a payday loan for a hundred bucks or so. But there’s a fourth option now: car title loans. These loans are tailored specifically for people with bad credit. Does that mean the documents needed for a title loan are more difficult to gather than those for other loans? Actually, no.
That’s because car title loans are different.You’ll never have your credit checked for a title loan — EVER. As impossible as it sounds, it’s the truth. How can auto title lenders do this? By making title loans a type of secured loan. According to The Balance, a secured loan is one in which you put something valuable at stake in order to get the loan. If you default on the loan, you forfeit whatever it was you used for collateral. In the case of auto title loans, the collateral is a car you own.
Car title lenders don’t make you bring your car in for them to hold; instead, you bring in your original car title. The paperwork you sign during your loan application states that you are willingly signing over ownership of your vehicle to the lender in the event that you don’t make your payments and refuse to work out a payment arrangement.
Yes, as the Federal Trade Commission warns us, some people wind up having their cars seized and sold, but this doesn’t have to happen. Ask questions during the application process. Make sure you fully understand your payment plan. Don’t skip payments and if something comes up, let your lender know. When you make your final payment, the lender will return your title to you and the account will be closed.
Documents Needed for a Title Loan
Applying for a title loan is usually a shorter and simpler process than a applying for a bank loan. With many lenders, you begin the process online by filling out a brief form for a loan quote. The form will ask for information about your car, like its make, model, year and estimated mileage. Then it will ask for some basic contact information, like your name, zip code and phone number. You’ll get a quote instantly and, soon after, you’ll get a phone call from an agent to see if you have any questions. Don’t be shy when you’re talking to the agent. Find out all the info about title loans you want to know.
The exact documents needed for a title loan depends on which company you’re applying with. However, they all follow a similar format. Nearly all title loan companies ask for the following items:
- a copy of your driver’s license or government-issued photo I.D.
- proof of your address
- proof of income
- the original car title
Your proof of address can be a lease or mortgage agreement or a utility bill in your name. Your proof of income can be pay stubs or bank statements.
In nearly every instance, you don’t have to have a job to qualify for a vehicle title loan. As long as you can show that you have some sort of steady income, most lenders will approve your application. That income can be from any of the following sources:
- child support
- disability benefits
- worker’s compensation
- social security
- rental income
- structured settlement payments
Other title loan requirements may include the following:
- a list of personal references with phone numbers
- a copy of the ignition key
- proof of car insurance
Frequently Asked Questions
Do you need to have the original car title?
Yes, you must have the original title and it must be in your name. If you’ve lost the title, you can visit your local Department of Motor Vehicles, or DMV, to apply for a duplicate title. A fee is associated which varies by state.
Does the car need to be paid off?
In most cases, the car must be fully paid for, although some lenders allow you to apply if you only have a few payments left.
What if I don’t have a driver’s license?
As long as you have photo identification you can apply.
How old do I have to be to apply?
You must be at least 18 years old.
Do I have to have good credit?
NO. You can have great credit, lousy credit, no credit; it doesn’t matter because your credit report will never be pulled.
Can I apply entirely online?
You can fax in all of the documents except for the original title. You can mail this if you absolutely can’t visit a storefront in person; however, it would be simpler to go to the office to drop off your title, sign your loan documents and pick up your check.
Contact a car title loan lender today to see what you qualify for. You’ll find that the application process, including the documents you need to bring, is easy and hassle-free.