How Can You Get A Title Loan If You Have No Proof Of Income? If you’re going through a difficult time in your life where you might be temporarily laid off from work or don’t have a steady job to point to, chances are you might be looking to borrow money from a car title […]
How Can You Get A Title Loan If You Have No Proof Of Income?
If you’re going through a difficult time in your life where you might be temporarily laid off from work or don’t have a steady job to point to, chances are you might be looking to borrow money from a car title loan to meet your immediate expenses. The great thing is you can apply for a title loan online and get the funds you need to take care of small or large costs upfront. But a dilemma you may be facing when applying for a title loan is how to get one if you don’t currently have a job because many title loan lenders want proof of income. The great thing is there are still ways you can get around this requirement.
Why It’s Hard To Get Title Loans Without Proof Of Income
You might be wondering why your title loan needs proof of income if it’s secured by your vehicle. In most cases your vehicle’s current sales value probably will cover repayment of a title loan and then some, but if something were to happen to your vehicle such as an accident or a major mechanical failure, its value might plummet and you could be on the hook for the difference. On top of that, some states have laws against taking out title loans without proof of income in an effort to protect you from major debt, and to save you from some major legal trouble that could ensue if you don’t repay your loan. Whether it’s a couple hundred dollars or a couple thousand your borrowing, you should have some sort of income so you can get your title back quickly.
Better Ways To Take Out Title Loans Without Proof Of Income
One mistake people make when seeing a proof of income requirement is to assume it means proof of employment. That’s actually not the case because there are many other sources of income that people who are unemployed or self-employed have at their disposal. Do you receive any monthly checks for social security payments, disability, alimony or other unemployment compensations? Those will usually be counted as proof of income and accepted by auto title lenders. But even if you don’t have any of these, there are still other ways to prove you can repay title loans without proof of income.
Do you perform odd jobs or run a small business on the side such as mowing lawns or selling things online? That too is a source of income that auto title lenders may accept as an alternative to employment. If you do not have an official employment pay stub, you may be able to bring other documents to the lender’s store such as bank statements and IRS earnings statements such as a form 1099 or another miscellaneous compensation document.
Many title loan lenders also allow borrowers to take out title loans without income verification if they have a cosigner on the title loan agreement form. This person is someone who will be jointly responsible for payments the borrower has to make and will be required to pay the difference if the borrower doesn’t have enough to cover the payment due or defaults completely on it. Different lenders may have different policies on what the cosigner will need to have in order to be eligible to cosign with you, but usually they will need to be someone of good financial standing. It’s important that you work closely with your cosigner so that they understand how much they will pay and how much you will pay. You don’t want to break your end of the bargain, especially if they’re a family member or close friend because doing so could put your relationship with them in a bad place.
Why You Would Want To Take Out Title Loans Without Proof Of Income?
The great thing about title loans is once you get approved for them, you can use them to pay for just about anything you need. Whether it’s your monthly housing rent that you’re struggling to pay without a job, keeping the power on, or even buying a new computer for school, your title loan money is yours to use as you please. An online title loan application is simple to complete and if you show you’re able to repay it you could get approved very quickly.
One of the biggest benefits of title loans is that your credit score and credit history will not determine your eligibility to take out a loan. Now that does not mean that the lender won’t check on your credit background because if you’re currently in a situation where you are delinquent on major payments on top of being unemployed, they’ll usually need to know that. But having past bankruptcies and tough credit situations will not disqualify you from receiving a title loan.
