Title Loan Requirements
What are Car Title Loans?
Have you ever wondered what car title loans are and if one could help you out of a financial crisis?
Car title loans are secured loans that take lien-free car titles as collateral against loans. They’re specifically designed for people who have poor credit. Most credit establishments, like banks and credit unions, rely on your credit score to determine whether or not you’re a safe risk for a loan. Car title loan lenders don’t check credit scores at all. They know if you don’t pay your loan back, they have the legal right to seize your vehicle and sell it.
Title lenders accept clean titles to nearly any form of transportation, including cars, motorcycles, commercial vehicles, boats and RVs. They hold the title to the vehicle for the duration of your loan. Some lenders also ask for an extra set of keys and require you to pay for emergency roadside assistance. Once you repay your loan in full, they’ll return your title to you.
What are the Requirements for Getting a Title Loan?
The exact requirements vary slightly depending on the state you’re getting a title loan in. In general, though, many of the requirements are the same:
- that you are at least 18
- have a photo id
- have proof of income
- own the title to a vehicle in your own name
Most title lenders won’t approve a loan for you if you still owe money on your vehicle or if the vehicle is in someone else’s name. Some companies claim that you can get an entirely online loan, but the truth is you must visit a location to submit the original title, sign your application and have your vehicle inspected by an employee.
Why Title Loans Will Work for You
What are the merits of car title loans? They’re easy to get. You don’t need good credit. In fact, you don’t need to have a job. As long as you have some form of regular income, many places will approve you.