The rise of inflation has caused everything to cost more money. Paying for rent, utility bills, groceries, and other life necessities can use up most of a person’s paycheck, especially if you’re making the same amount as before. If you need extra help some month but don’t know where to find it, you may think you don’t have any financial options.
You should consider applying for a car title loan! This financing could be an excellent solution for people with bad credit who need cash quickly. The title loan process can be completed online and may be approved within the same business day as applying! Learn about what you need to inquire about a title loan.
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What Is a Car Title Loan?
A car title loan allows a borrower to use their car as collateral for funding from a lender. People with bad credit scores may still be approved for title loan funding because financial history is not the main focus during the approval process! While it may be considered, lenders care much more about:
- How much value is in your car
- Whether or not you can repay the loan
The value of your vehicle is crucial because it can determine how much funding you may get if approved. Additionally, lenders want to know whether or not you can repay the loan because you could fall into a debt cycle if you can’t. That’s why you must show proof of a steady income when you apply! Many forms of alternative income are accepted during the approval process– title loan financing is one of the most flexible ways to access funding!
What Are the Requirements?
You need to meet three main requirements to apply for a car title loan. If you don’t meet one of them, you probably won’t be able to qualify for financing. The good news is that they are fairly straightforward! They are:
- Be an adult at least 18 years old
- Have a legal car title under your name
- Be able to show proof of income
You must be an adult at least 18 years old to apply and qualify for title loan funding. Some loans allow minors to apply, but this is not one of them! Additionally, you must have a legal car title under your name to move forward with the inquiry process. Car title loans rely entirely on using a borrower’s car title as collateral for funding. Without a legal title under your name, there is no agreement!
Finally, you must be able to show proof of a steady income. This proves to lenders that you will be capable of paying your funds back. The good news is that you don’t need to work a traditional 9-5 position to qualify! Many forms of alternative income are accepted during the approval process.
Documentation for a Title Loan
If you meet the title loan requirements above, the next step is gathering the necessary documents to move forward with the application. Unlike traditional bank loans that can have complicated approval processes, the documentation required for a title loan is easy to track down! You will need:
- Government Issued Photo Identification
- Proof of Residence
- Proof of Income
- Proof of Legal Car Title Under Your Name
- Recent Photos of Your Vehicle
You will need to prove your identity and age during the application process for a title loan by showing a government-issued photo I.D., like a driver’s license or passport. Next, you must show proof of residency. Title loans are available in most states but may have different laws! To qualify, you must prove that you live in a state where title loans are available. You can do so by providing a piece of official mail, like a utility bill or bank statement.
As mentioned earlier, you need proof of income to get approved for title loan funding. That’s because lenders want to know you have enough money to repay the proceeds! Many alternative forms of income are acceptable to use outside of traditional pay stubs from work. They are:
- Worker’s Compensation
- Social Security Benefits
- Annuity Payments and Retirement Income
- Lawsuit Settlement Funding
- Alimony/Child Support
Maybe you own a small food truck business, sell clothes from an online storefront, or do handyman jobs around your neighborhood. As long as you can prove that you receive steady checks every month, you should be okay during the application process for a title loan! While some incomes may not qualify, there are a lot that do.
This was mentioned before but is worth nothing again. You need to show proof of a legal car title under your name if you want to get auto title loan funding. You don’t need to be the car driver or owner to qualify! Many acceptable circumstances allow you to move forward with approval. Contact a title loan agent if you have questions about your situation.
Finally, you may be asked to show recent photos of your vehicle. That’s because the amount of funding a qualified borrower may get depends on how much equity and value is in their car. Sending in photos allows the lenders to do a virtual inspection!
Apply for Car Title Loan Funding Today
Don’t let the high cost of living stress you out! Even if you have a bad credit score, you could potentially qualify for funding within the same day as applying. As long as you are 18 years or older, have a legal car title under your name, and can show proof of a steady income, you can apply for financing! Get started today by visiting the LoanMart website to learn more about car title loans.