What Do You Need for a Title Loan?

The Title to Your Vehicle

Your title is used as collateral to secure your title loan, so it’s one of the most important documents involved in the entire process. You will need to submit your title to your lender when you apply for a title loan.

If you can’t find your title, let your lender know right away. They can guide you through the process of obtaining another copy from the Department of Motor Vehicles (DMV) so you can complete your application.

The title you submit to your lender must have your name on it. Your name does not need to be the only name on the title, though.

It’s important to note you cannot use a salvage title as collateral to secure a title loan. A salvage title is given to vehicles that may have suffered extensive damage and been declared a “total loss” by an insurance company. It’s very difficult to estimate the value of a vehicle with a salvage title, which is why title loan companies will not accept them as collateral.

Proof of Income

The title loan company will also ask you to submit proof of income so they can confirm that you have a reliable source of income you can use to pay off your loan.

Proof of income can come in many different forms. Some examples of acceptable forms of proof of income may include recent tax returns, pay stubs, or bank statements showing deposits.

Make sure you ask your lender what forms of proof of income they accept so you know what documents you should prepare to submit when applying for a title loan.

Proof of Residence

You should also be prepared to submit proof of residence to your lender when applying for a title loan. If you have a driver’s license, you can submit a copy of it to the title loan company to satisfy this documentation requirement.

If you don’t have a driver’s license, there are other documents you can submit to prove your residence. Some examples of these documents include your lease agreement, most recent mortgage statement, or utility bills.

The documents you submit as your proof of residence must show your name and current address. For example, if your utility bill only shows your roommate’s name, you cannot use this document to prove your residence.

Proof of Auto Insurance

Because your vehicle is used as collateral to secure your title loan, your lender will want to make sure it’s covered by auto insurance. For this reason, your lender will ask you to submit proof of auto insurance when you apply for a title loan.

For example, you may be asked to submit your most recent insurance statement showing the coverage dates along with the description of the vehicle that is covered under the policy.

Can You Get a Title Loan Without Bringing In Your Car?

Your vehicle is used as collateral for your title loan, so your lender will need to know how much it is worth before determining if you are eligible for a title loan and if so, how much you can borrow. To calculate your vehicle’s resale value, your lender will need to inspect it at some point during the application process.

Your lender may ask you to bring your vehicle in for an in-person inspection. However, some lenders make the process more convenient by sending someone to your home or workplace to inspect your vehicle at a time that works for you.

There are also lenders that may allow you to submit photographs of your vehicle instead of getting it inspected. If you are given this option, make sure you understand what areas of the vehicle need to be photographed.

Talk to your lender to learn more about their valuation process. This way, you will know what to expect when it’s time for your title loan company to calculate the value of your vehicle.

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