What Do You Need to Take Out a Title Loan?

The Title to Your Vehicle

The title to your vehicle plays an important role in the title loan process because it is used as collateral to secure your loan. For this reason, you must be prepared to submit the title to your vehicle to your lender during the application process. 

The title you are using as collateral must have your name on it, which indicates that you are the legal owner of the vehicle. Your name does not need to be the only name on the title, though. You can use a title as collateral even if you share ownership of the vehicle with someone else. As long as your name is on the title, it doesn’t matter if someone else’s name is also listed. 

You cannot use a salvage title as collateral for a title loan. Salvage titles are only issued to vehicles that have suffered extensive damage as a result of a natural disaster, accident, or some other event. A vehicle with a salvage title has been declared a total loss by an insurance company, which means the cost of repairing the vehicle exceeds the vehicle’s value. 

It’s hard to estimate the value of a vehicle with a salvage title, which is why title loan companies will not accept these titles as collateral.

Don’t give up on applying for a title loan if you can’t find the title to your vehicle. If you misplaced your title, let your lender know as soon as possible. Your lender can assist you with the process of obtaining a new title so you can complete your application.

Your Driver’s License

Be prepared to submit your driver’s license to the title loan company when you apply for a title loan. If you do not have a driver’s license, the title loan company may accept other forms of government-issued IDs. Talk to your title loan company to find out what you will need to submit to fulfill this requirement.

Credit Check Consent

You will need to consent to a credit check during the title loan application process. This gives your lender the opportunity to review your credit history and evaluate your creditworthiness. The results of this evaluation will impact your eligibility for a title loan. However, this does not mean that you need perfect credit to qualify for a title loan.

Your credit is only one factor that the title loan company will consider when determining your eligibility. Title loan companies also consider the resale value of your vehicle, your ability to repay the loan, and other factors. 

In short, title loan companies accept most credit types. In fact, you may qualify for a title loan even if you don’t qualify for a traditional personal loan due to your credit.

Proof of Residence

The title loan company may ask you to submit proof of residence during the application process. Proof of residence can come in a number of different forms. If you submit your driver’s license, for example, this may serve as proof of your residence. 

However, if you don’t have a driver’s license, the title loan company may accept other forms of proof of residence, including a recent utility bill, lease agreement, or mortgage statement.

The documents you submit as proof of residence must include both your name and your current address. For example, if your spouse’s name is the only one on your utility account, you cannot use a utility bill as proof of your residence since your name is not listed.

Proof of Income

You must have a reliable source of income to qualify for a title loan. To confirm you meet this eligibility requirement, the title loan company will ask you to submit proof of income when you apply for a title loan.

There are many different acceptable forms of proof of income, including recent pay stubs, tax returns, or bank statements. Talk to your lender to find out what documents they will accept as proof of your income.

Proof of Auto Insurance

Because your vehicle is used as collateral, the title loan company will want to make sure it is protected by auto insurance coverage. For this reason, you should be prepared to submit proof of auto insurance when you apply for a title loan.

The auto insurance policy must be active and must cover the vehicle you are planning to use as collateral for your title loan.

Vehicle Inspection

Because your vehicle is used as collateral, the title loan company needs 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, the title loan company may ask you to bring it in for an inspection. Some title loan companies, however, may send an inspector to your home or workplace to make the process more convenient for you. There are also title loan companies that allow applicants to submit photos of their vehicle in lieu of an inspection. Talk to your lender to learn more about their valuation process.

Regardless of the valuation process, the title loan company will calculate your vehicle’s resale value based on many factors, including its make, model, year, condition, mileage, and trim level.

You cannot borrow more than your vehicle is worth, which is why figuring out your car’s resale value is so important.

Co-Signer (Optional)

If you don’t meet the eligibility requirements on your own, you may want to consider adding a co-signer to your title loan application. The person who co-signs your application will not receive any of the title loan money. By adding their name, they are simply agreeing to repay your loan in the event you fail to do so.

Adding a co-signer with good credit can make it easier for you to get approved for a title loan. Even if you qualify for a title loan on your own, adding a co-signer could help you secure better terms. For example, a co-signer might help you qualify for a lower interest rate, which will save you a significant amount of money.

Conclusion

Now you know the ins and outs about what you will need to take out a title loan. If you’re ready to secure the fast cash you need, call 1-800-227-8485 to start the title loan application process!