Title loans are a secured installment loan that helps the qualified borrowers get advantageous benefits, making repayment easier and more affordable. But some people question whether they can get it without proof of income or not. Fortunately, if you are currently unemployed and think that you are not eligible for the same, you might be wrong. Even if you don’t receive a paycheck, you can qualify due to access to consistent income.
During financially rough times, you find yourself needing fast cash to meet all your ends. For that, you even think of loans. But many lending institutions require you to show up with proof of income to qualify. But they ignore the fact that you seek financial help the most when you have no steady income.
That’s when title loans kick in and can prove useful. They help you be eligible even if you are not earning. Here’s what you need to know about that.
Just as you prove you are getting money from other sources such as welfare, disability, unemployment benefits, worker’s compensation, pensions, alimony, investment income, court settlement payments, inheritance, retirement income, severance pay, and side projects like rideshare driving or selling items online; you may still qualify for a title loan, keeping Pay Stubs and bank statements aside.
But without a steady income, you may only qualify for an amount one-half or less of your car’s value. So, be wary of that. On a positive note, that makes it easier for you to repay the money and bolsters some leverage to negotiate a lenient repayment plan.
DOCUMENTS YOU NEED TO SHOW
Bank Statements a Proof of Income
Perhaps, you have been diligently saving some money. So, show recent statements to the loan agent as proof of your ability to repay the principal along with interest. Though, instead of using the entire funds to take care of that costly bill, inquire for title loans and pay in small installments.
You may be pleased to know that you can use alternative incomes to get this advance. But for that, you will be asked for other paperwork. Typically, the additional documents needed for title loans encompass:
- Car Title
This is the second main qualifying factor that will help you get a lead. Just have your car title in your name and show up with the proof to the lender. If the car is not registered in your name, simply request a title transfer.
A state-issued photo identification card is necessary to obtain any loan. Thus, show a state ID, driver’s license, passport, or whatever that is issued by the government to you.
- Proof of Residence
Proof of residence is an essential document for getting an advance. Anything from house deeds, rental agreements, and utility bills to credit card statements can help you get through the process with ease.
Along with the aforementioned documentation, the financial institution will ask you to provide a professional or personal reference to get approved for a loan.
Inquiry Process When You Have No Evidence of Income
Financial crises hit you when you least expect them. Title loans are the safest and the easiest means of finance during emergencies. But with no evidence of income, it is quite tricky to get them.
Know that you still have a chance to get this lending. Inquire for the same from the reputed institutions, and you will know. Generally, the process is streamlined for convenience; and to get started; you are only required to provide basic information about yourself and your car.
The Final Thoughts
But how do title loans work in the first place? This is an important concept that you should understand to avoid possible scams. Since it is a matter of a loan, you better brush up on all the facts revolving around it before keeping your car title as collateral.