Title Loans Requirements Simplicity and transparency are the hallmarks of title loans, and this applies to title loan requirements. Of all personal loan application types, the title loan application process is the most straightforward and swift. Most lenders process your application and offer you a competitive loan within 24 to 48 hours, providing you meet […]
Title Loans Requirements
Simplicity and transparency are the hallmarks of title loans, and this applies to title loan requirements. Of all personal loan application types, the title loan application process is the most straightforward and swift. Most lenders process your application and offer you a competitive loan within 24 to 48 hours, providing you meet all the requirements. Following are title loan requirements and other basic details to help you answer the question: Is a title loan a good idea?
Getting the Title Loan You Deserve
A title loan is easy to apply for, obtain and repay because it’s a secured loan. With a secured loan, you pledge collateral as a guarantee of repayment to the lender. Unlike an unsecured loan, you don’t need good credit or any credit to get a title loan.
Since your car and your title are your guarantee of repayment, you’re all but guaranteed to score sweet greenbacks in no time at all. In some states you can score up to 50 to 70 percent of your vehicle’s current market value.
The first and most important title loan requirements are
- A vehicle that you own and
- A title
Generally, your vehicle must be completely paid off, but some lenders may still work with you if your vehicle is merely almost paid off. Your vehicle title must be in your name and it must be lien-free.
There are such things as second-lien title loans, in which a lender gives you a title loan even though your title isn’t clear or lien-free. Speak to your lender about this option, since not all lenders offer it.
Proof of Identity
You must corroborate your identity during the application process for your title loan. Your proof of identity must match the individual listed as the sole owner on your vehicle title. Acceptable proof of identity includes state and government issued ID, such as:
- In-state, fully valid driver’s license (not temporary or learner’s permit)
- Fully-valid, undamaged U.S. passport book or passport card (with recognizable photo, can be expired)
- Government employee ID (city, county, state, or federal)
If you do not have any of the acceptable forms of ID listed above, consult with your prospective lender to confirm alternative forms that might be okay. As a general rule, ID you might use to apply for a passport (or even your passport itself) might be acceptable.
All forms of ID must be originals and not copies.
Proof of Income
There is a widespread misconception that you must be employed before you can obtain a title loan. Wrong. Lenders prefer that you’re employed, since steady employment means steady pay, which confirms your ability to repay your title loan debt on time.
However, title loan lenders just want you to confirm steady income or your ability to repay your title loan. Viable proof of steady income or of financial benefits includes:
- Unemployment benefits
- Social Security
- Income from odd jobs
- Paychecks for freelance work
Nontraditional income streams are sometimes difficult to prove. Nowadays, most unemployment payments occur by direct deposit, so you’ll need to explore alternative options in order to prove your receipt of unemployment income.
References: A Vouch For Your Character
Depending on the state you live in and the lender you apply to, you may require at least two valid references, including names, phone numbers and addresses. Occasionally, lenders use your references merely to confirm your basic biological details, while others rely on your references to supply the details of a light background check.
Proof of Vehicle Registration
The vehicle for which you seek a title loan must be
- Registered in your name and
- You must be current on your registration
Your vehicle must be in working condition as well, since its overall condition and its mileage affects the total title loan amount you could potentially receive.
Even if you use an online car title loan such as ours, a brief vehicle inspection is a mandatory step that must take place before you receive an offer for a loan with unique terms.
Other Assorted Requirements
There are no hard and fast rules for title loan requirements. Even if you do not meet all of the prescribed criteria, apply for a title loan anyway. The process is very lenient, and many lenders are willing to work with you.
In addition to the requirements discussed above, some states impose an age minimum of 18. Some lenders also prefer that you possess
- Utility bills or other proof of residency that match the name on your title
- Working copies of your vehicle’s keys
- Proof of your vehicle’s insurance
Don’t believe the negative hype. Title loans are safe and convenient. In most states you can rollover your loan into a new one to avoid defaulting, and you can negotiate to get the lowest payments and most viable payment schedule for your finances. Repay your loan over weeks, months or even years.
Remember: You don’t need credit to get a title loan, so your loan never appears on your credit report or affects your credit score. But the best perk is, you get to keep your car while you have your loan, so there’s no interruption of your personal or professional life. Don’t waste another moment grappling with debt woes. Visit our FAQ page or give us a call today.