Savings and checking and cards… oh my!
Playing the cash game is often like playing beat the clock. You move money from one account to the next to avoid overdrafts. You try cash advances on credit cards to cover yourself when times are tight.
But what can you do if you’ve exhausted all your accounts and still need cash? That’s when you can turn to your assets. Hold on, we’re not asking you to sell any of your belongings, we’re talking about car title loans.
To simply put, a car title loan is a relatively fast way to get money using your car’s title as collateral. If you’re interested to know how you can get one, let’s take a closer look at the 5 car title loan requirements:
1. You Own a Car
Of course, you must own a car if you plan to get a title loan. This means that the car is registered under your name and it’s your name that shows up on the title.
Still making payments to a lender for your car? That’s okay too!
In many cases, the lender will hold the title for your car and they’ll record their lien on the vehicle. But a title loan can still be taken using the equity you have in the car.
Equity is the difference between the value of your car and what you owe on it. If your car has some equity, you may still be eligible for a title loan. The amount of your loan will be affected by the amount of equity you have in the car.
2. You Have a Valid ID
A valid form of ID, like a driver’s license or state-issued ID card is a must. If you own a car, odds are pretty good that you have a driver’s license to fill this requirement.
But let’s say you don’t have a license but still own a vehicle. For example, you own a car that your adult child uses to drive you around. Then that car is eligible for a title loan as long as the title is in your name.
3. You Have a Monthly Income
You must be able to prove that you can repay your title loan. In order to do that, you’ll need to provide a document showing your monthly income. This might include any of the following:
- Bank statement showing regular direct deposits
- Social security statement
- Unemployment statement
- Tax returns
4. You Have Full Coverage
Most of the title loan lenders ask for full coverage insurance on your vehicle. Adding full coverage to your insurance policy is usually easy to do. Ask your insurance agent or visit their website to do this.
However, this requirement can be only subject to the loan amount.
5. You Have Some References
Do you know someone who would say great things about you? If so, you’re one step closer to getting that car title loan.
Personal references serve several purposes. They allow us to verify that your identity hasn’t been stolen and to verify the information on your application. They also serve as a backup communication in case we can’t reach you.
Here are some good ideas for possible references:
- A relative who doesn’t live with you, like a sibling or cousin.
- Your boss or another coworker who knows you.
- A neighbor or close friend that you speak to often.
Do You Meet the Title Loan Requirements?
If you need cash, a title loan is a great option for you. As long as you meet the title loan requirements, you can get cash in your pocket in just a few minutes. And you’ll find that many title loan lenders have kept the application process very simple so that you can borrow money fast during emergencies. These title loan requirements can vary from one lender to another, so it’s better to do your research before applying for a loan from any lender of your choice.