Many people who need fast cash rely on title loans. Unlike traditional personal loans, title loans are secured by collateral. If you want to apply for a title loan, you must be willing to use the title to your vehicle as collateral. This doesn’t mean you will have to give up your vehicle, though. It simply means the title loan company will hold onto or put a lien on the title until your loan has been paid off.
If you need cash to make ends meet temporarily, a title loan might be the solution. However, if you’re struggling financially due to unemployment or the sudden loss of a job, you may be wondering whether you will still qualify for a title loan. Do you need proof of income for a title loan? Here’s everything you need to know before submitting your title loan application:
Why Do Title Loan Companies Need to See Proof of Income?
You must have a reliable source of income to qualify for a title loan. This ensures you have the means to repay the money you are borrowing. During the application process, the title loan company will ask you to submit proof of income so they can verify that you meet this eligibility requirement.
There’s another reason why title loan companies will ask to see proof of income during the application process. No title loan company wants to lend a borrower money that they have no ability to repay. To avoid this problem, the title loan company will evaluate your income to determine how much you can afford to repay. The results of this evaluation will impact how much money you are approved to borrow if you are approved for a title loan.
What Are Examples of Proof of Income?
Every title loan company will ask you to submit proof of income when you apply for a title loan. If you are planning on applying for a title loan, you may want to start gathering this documentation now to speed up the application process.
What counts as “proof of income” could vary depending on the title loan company. In general, though, most title loan companies will accept the following documents as proof of income:
- Recent pay stubs
- Recent tax returns
- Recent bank statements showing regular deposits
Ask your title loan company to provide a list of the documents they accept as proof of income. Then, start gathering these documents so you are ready to submit your application.
Can I Get a Title Loan If I’m Unemployed?
Having a reliable source of income is one of the requirements you must meet to qualify for a title loan. Being employed, however, is not a requirement. You may still qualify for a title loan if you are unemployed as long as you have another reliable source of income.
For example, say you are unemployed but you receive veterans’ benefits from the government. In this case, you have a reliable source of income even though you aren’t employed. If you can provide proof that you receive these benefits, you may still qualify for a title loan.
Other examples of income include disability benefits, Social Security benefits, alimony payments, or rental income.
The bottom line is your income does not need to come from a regular job to meet the title loan eligibility requirements.
Can I Add a Co-Signer to My Title Loan?
If you are unemployed without a reliable source of income, you may not qualify for a title loan on your own. However, adding a co-signer to your application could improve your chances of getting approved for a title loan.
A co-signer is someone who agrees to repay your debt in the event you fail to do so. A co-signer can be anyone who is willing to take on this responsibility, including friends, family members, or even colleagues.
Your co-signer will need to provide some documentation, including proof of residence and income. They will also need to consent to a credit check so the lender can evaluate their creditworthiness. Everything is kept confidential, which means you will not have access to the documentation they submit and they will not have access to the documents you submit.
What Other Documents Will I Need to Apply for a Title Loan?
Proof of income isn’t the only documentation you will need to provide to apply for a title loan. If you’re planning on applying for a title loan, be prepared to provide:
- Your driver’s license or another form of government-issued ID.
- The title to your vehicle, which must have your name on it.
- Proof of residence such as your driver’s license, lease agreement, mortgage statement, or recent utility bills.
- Proof of auto insurance.
Some title loan companies may require additional documentation. Talk to your title loan company to ensure you know exactly what you need to submit to apply for a title loan. The sooner you submit the required documentation, the sooner you can get the cash you need.
How Much Can I Borrow Through a Title Loan?
The amount you are approved to borrow through a title loan will depend on several factors, including:
- Your income: Remember, the title loan company will carefully evaluate your income to determine how much you can afford to repay.
- Your vehicle’s resale value: Because your vehicle is used as collateral, the lender must know how much it is worth before determining how much you can borrow. Your vehicle’s resale value will be calculated based on its make, model, year, mileage, condition, and trim level.
- Your equity: Equity is the difference between your vehicle’s resale value and the amount you still owe on it. You cannot borrow more than the value of your equity in your vehicle.
The title loan company will consider all of these factors when determining how much you can borrow. You may be approved to borrow anywhere from $2,000 to $50,000.
How to Apply for a Title Loan
You can still qualify for a title loan even if you’re unemployed. If you’re ready to get the fast cash you need, follow these steps to apply for a title loan from 1(800)CAR-TITLE®:
- Speak to our loan officers. You can call 1-800-227-8485 to speak to a loan officer directly. You can also submit your information using the form on our website and wait for a loan officer to contact you.
- Get a free loan estimate*. It only takes a few minutes to get a free loan estimate from your loan officer. All you need to do is provide some information about your vehicle, including its make, model, year, mileage, and condition. Your loan estimate will tell you if you are approved for a title loan, how much you can borrow, and at what interest rate.
- Complete your application. If you’re satisfied with your loan estimate, complete your application by signing and submitting the required documentation. Work with your loan officer to ensure you sign and submit everything that is needed to process your application.
- Get your cash. You can collect your cash shortly after your application is approved. Pick up the cash in person or have it sent to you via check or wire transfer–whatever is more convenient for you.
You don’t have to jump through hoops to borrow money through a title loan. Contact us today to start the application process.
*Loan approval is subject to meeting the lender’s credit criteria, which includes the demonstration of the ability to repay the loan. Not all applications will be approved.