Any time you apply for a loan, your lender is going to ask you to provide some form of documentation. While every lender might ask you to submit slightly different items, there are some that almost every lender is likely to ask for. So which documents are you most likely to need for an auto title loan?
What Are Some of the Documents a Lender Might Ask For?
Before a lender can finalize the title loan, they’ll need to verify a few things with you and will typically ask you for the following documents:
- Proof of income
- Proof of vehicle ownership
- Vehicle photos
- Proof of address
- Photo ID
What Proof of Income Will Lenders Accept?
No matter what kind of loan you apply for, the lender will always ask you for proof of income. The reason for this is twofold: firstly, they’ll want to make sure you can afford the monthly payments and, secondly, it’s to confirm you’re earning the amount you specified on your application.
If lenders didn’t verify income, they’d be relying on the honesty of the borrower and leaving themselves open to fraud.
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Pay stubs are almost certainly accepted by every lender, but you may not have pay stubs they can submit. This could be for a number of reasons:
- You’re paid in cash
- You’ve just started a new job
- You’re out of work
- You’re unable to work
If your employer pays you in cash, the chances are you deposit your pay directly into your bank account. In that case, your lender will likely accept bank statements as proof of income.
Just started a new job? Depending on your lender, they might accept a letter of employment from your employer. The letter should state your salary, pay frequency, be printed on company paper and include the contact information for either the HR department.
Alternatively, the lender might also be willing to call your employer to verify your employment and your salary.
It can be tough to get a loan when you’re out of work, but many lenders are accepting unemployment benefits as proof of income.
Similarly, if you’re unable to work and you’re receiving social security benefits, your lender could still be in a position to help you. In this situation, many will accept government award letters as proof of income, but it’s often a good idea to speak to your lender first.
What Vehicle Documents Are Required?
When it comes to title loans, the most important thing to prove is that you own the vehicle you’re using as collateral. To do this, you’ll need to show the lender your name is on the vehicle title as the owner. Unfortunately, this is where things can get a little complicated.
If you’re listed as the sole owner of the vehicle, then there’s potentially no problem. However, if there are two names on the title then it depends upon what appears between the two names.
For example, if the word OR appears there, it means either owner could obtain an auto title loan without needing the permission of the other.
If, however, the title has AND between the names then either both owners would need to be on the auto title loan, or else the person trying to borrow the money would need to become the sole owner.
Lastly, if / appears between the two names then its meaning can vary from state to state and you’d need to consult with the lender on the next steps.
Besides proof of ownership, you’ll also need to show the vehicle is in good, running condition. Some lenders might require you to drive to a physical location, while others will allow you to submit pictures (or even a video) instead.
The lender will need to see all four sides, plus the odometer and the VIN. They’re looking for any major physical damage and they’ll need an accurate odometer reading to verify the mileage given during the application is correct. The photo of the VIN is compared to the VIN on the title to ensure they match up.
What Other Documents Will a Title Loan Lender Ask For?
Besides verification of your income and the vehicle, the lender will probably ask for a few other documents.
For starters, you’ll need to provide a proof of address, like a utility bill. It needs to have your name and physical address, and not a PO Box number. This is so the lender can verify you live at the address you gave for the application.
Lenders also typically ask for a photo ID. Many will ask for a government-issued ID, while others might not be so stringent. Either way, you could easily use your driver’s license, so this isn’t usually a problem.
Lastly, your lender may also ask you to provide some references. These are typically friends and family who know you, but don’t worry, they won’t be contacted during the application process. In fact, they might not be contacted at all, as the lender will only call them if they’re unable to reach you.
Many borrowers will be able to easily provide any or all of the documents requested by the lender, but should you have any questions, speak to the lender to find out if they can be flexible.
Which Auto Title Loan is Best For Me?
Shopping around for an auto title loan can be a laborious process, especially if you’re not sure where to start. Fortunately, there’s one option that makes it quick and easy to get the money you need – and there are financial benefits to be had even as you’re making your payments.2
With a regular loan, you borrow the money and then you make your monthly payments until the loan has been repaid in full. Once the money’s gone, you’re left with the repayments, which remain the same regardless of the outstanding principal balance.
With a ChoiceCash Auto Title Loan, serviced by LoanMart, you can get the money you need within 24 hours and then potentially start saving money when you make your payments.1 2
Here’s how it works: when you make your monthly payment on time, the annual interest rate on your loan can be automatically dropped.2 When that happens, your payments are reduced too.2 This allows you to save a little extra every month.2 You could see your payments nearly halved over the lifetime of the loan.2
If you’re able to repay the money sooner, that’s no problem as you’re welcome to pay off the loan at any time with no prepayment penalties or fees.2
Also, if you find yourself in a tight financial spot later on, you can even potentially borrow more at a later date.1 2 Unlike other loans, you can keep the same low interest rate you’ve worked hard for on your existing loan AND continue to save money by making your payments on-time and reducing your payments every month.2
Even the application process is easier than other loans. Documents can be submitted online via a secure website, via email or even via SMS text message. The entire process can be completed without ever leaving the comfort of your own home!1