If you’re looking for a loan but are out of work or don’t have a regular paycheck, you may be wondering how you’ll be able to borrow the money you need. The bank may be unwilling to lend you anything and although payday lenders may still be able to help, the amount you can borrow will be limited by your monthly income. Fortunately there’s another option that can give you the money you need – even if you’re out of work or self-employed.
How Can I Prove My Income if I Don’t Have a Regular Paycheck?
There may be any number of reasons why you’ve found yourself in the position of not having any pay slips to prove your income. For example:
- You’re out of work
- You’re self-employed
- You’re seasonally employed
- You’re about to start a new job
- You get paid in cash
While any one of these reasons might seem like a deal breaker, the reality is that you might still be able to get the money you need. Each lender will have their own guidelines, but there may be some flexibility in terms of the proof of income you’ll be asked to provide.
For example, if you’re out of work, you may be able to provide proof of unemployment benefit payments or award letters. If you’re self-employed or a seasonal worker, you could provide bank statements, or even tax records, to prove your income. Lastly, if you’re about to start a new job or get paid in cash, many lenders are willing to accept a letter of employment from your employer.
Typically, if you’re able to prove your Year-to-Date (YTD) earnings or confirmation that you earn a specific amount in a 12 month period, most lenders will be willing to work with you.
What Are My Loan Options if I Don’t Have a Regular Paycheck?
As we know, the bank more than likely won’t be willing to lend you the money if you’re not receiving a regular, steady paycheck. They’ll see it as being too much risk and you’ll be forced to consider other alternatives.
A payday lender might be willing to help you out, but there are two potential problems. Firstly, since you’re borrowing money against your next paycheck, you won’t be able to borrow more than a percentage of how much you typically get paid with each check.
Secondly, these types of loans are meant to be a short term solution to a temporary cash flow problem as you’ll be expected to pay them back within a few weeks, or a month at most.
As a result of both these issues, you’ll probably find you’re unable to borrow more than several hundred dollars at a time – and if you need more time to repay the loan, you could find yourself paying more than you bargained for.
If you need more money, you might consider an unsecured personal loan. Many lenders may be willing to accept different forms of income and could potentially lend you thousands, but there’s a catch: you’ll probably need a great credit score of 700 or more. So what are your options if you need money but you’re not receiving a regular paycheck or your credit isn’t the greatest? An auto title loan could be the solution you’re looking for.
What is an Auto Title Loan and How Do They Work?
An auto title loan works by allowing you to use your car as collateral for a loan.1 The amount you could borrow will depend upon the value of your car, so if your car is worth enough, you could potentially borrow thousands of dollars. As an added bonus, since you’re using your car as collateral, your credit is not a large factor in the decision making process.
Once you’ve signed the paperwork and received your money, the lender will apply a lien to your vehicle. This means that, as a lienholder, they have a stake in your vehicle. It doesn’t mean they own it, but if your insurance pays out any money in the event your car is written off, the lienholder is entitled to be paid first.
It also means that if you’re unable to make your payments, the lienholder is entitled to repossess and sell your vehicle to recover their money. As this isn’t something anyone wants (including the lienholder) it’s always advisable to contact your lender if you have any financial hardship. Many lenders will do what they can to help, as it can be expensive and inconvenient to repossess and then sell a vehicle.
How a ChoiceCash Auto Title Loan, Serviced by LoanMart, Can Help
A ChoiceCash Auto Title Loan, serviced by LoanMart, stands apart from the others in several important ways. The principle – using your car as collateral to borrow money – remains the same, but a ChoiceCash Auto Title Loan can also help you to save money too.2
When you make your monthly payments on time, the annual interest rate on your loan can be reduced – and so are your monthly payments. 2 As a result, you can put the money back into your pocket or save it for when you really need it. Continue to make your payments on time, and they can continue to go down with your payments being nearly halved over the lifetime of the loan. 2
As an added bonus, if you need emergency funds in the future, a ChoiceCash Auto Title loan gives you the ability to potentially borrow more. 1 As long as you and your vehicle continue to meet the criteria, you may be eligible for extra cash – and at the same low rate of interest you’ve earned on your existing loan.
How Can I Apply for a ChoiceCash Auto Title Loan?
To get started, you only need to call (855) 914 2945 toll-free or visit www.choicecash.com. After answering a few questions about your situation and your vehicle, you’ll find out if you’re pre-qualified for a loan. The whole process takes just a few minutes and you could have your money in 24 hours or less. 1
Your loan specialist will detail the documents you need, but you’ll only need to provide one of the following as proof of income:
- Pay Stubs – as long as they show Year-to-Date (YTD) earnings
- Bank Statements – regular bank statements, or even PayPal account statements
- Government Award Letters – if you’re receiving benefits, you can still apply for a loan
- Verification of Employment – a letter from your employer and verbal verification by your loan specialist
A quick and easy application process, flexible proof of income requirements, your money available in hours, plus payments that go down and the possibility of borrowing more in the future. 1 With all these great benefits, it’s not hard to see why a ChoiceCash Auto Title Loan, serviced by LoanMart, is the preferred lending solution for borrowers everywhere!