Are you interested in seeing how much money you can access with a title loan? Many borrowers turn to these equity loans because they can't qualify for traditional lending offers or they want to avoid dealing with the lengthy requirements of personal loans. But what about the requirements for car title loans? You likely know it takes far less time and work to qualify, but what's needed? Let's get right to the details of what you need to get same day cash for your vehicle!

 

What Are The Requirements For A Title Loan

The basic requirements for a title loan are simple. Applicants must own a vehicle and prove the title is in their name. The car's title must show you as the sole owner, and you can't have any liens or other loans attached to the pink slip. Applicants must also provide proof of income and residency to show the lender they can make the monthly payments.

Besides those main documents listed above, you may need to verify a few less common things. These can include having a valid driver's license, proof of current vehicle registration, and car insurance, and some title loan lenders may request proof that the vehicle is fully operational. Even if the car has some mechanical issues, that may be ok. But you will still need to inspect the vehicle to show its value matches the current resale amount. Remember, all title loan companies have specific requirements besides the industry standard qualifications outlined above.

 

Why Title Loan Requirements Are Less Than Other Loans

Title loans are considered a type of secured personal loan because they use collateral – the title of your car – to secure the borrowed amount. This means title loans typically have fewer and less strict qualifying criteria than traditional personal or unsecured loans that lack the security of a car or truck. For example, conventional lending options like banks and credit unions often need good credit scores and lengthy applications before loan approval. With title loans, your credit score isn't always considered when underwriting the lending terms. You can usually get same-day or next-day cash.

While title loans may be a quick and easy solution for accessing funds, they come with higher interest rates than traditional lending options. The tradeoff comes when comparing an unsecured loan and online title loan requirements. You have far fewer requirements during the underwriting process and don't need good credit.

 

 

Other Lesser Known Requirements For Title Loans

What else should you expect if you have all those boxes checked but still face the prospect of not getting approved? There are a few other things a lender may want to see before signing off on your application, including a vehicle inspection accident report. You may face a scenario where you need to install a GPS tracking device on your vehicle. GPS tracking is not common; in some states, these devices are outlawed, but it's not unheard of and something to consider for loan amounts over $10,000. Lastly, some companies may require some type of credit check to verify your personal information or look for severe credit issues. Even though title loans are commonly advertised as not requiring a credit check, a lender may still want to verify your credit history and look for recent defaults.

Ultimately, the requirements for a title loan are far less than what you would see from an unsecured lender because your car acts as collateral. Your lender knows they can repossess the vehicle if you ever default on the payments, making it much easier to underwrite a title loan.

 

Tips To Deal With The Current Requirements For An Auto Title Loan

Save time and hassle by working with a company that knows precisely what you need to get approved. Here are some tips we've put together to make things as easy as possible when it comes to title loan requirements:

 

• Have a car titled in your name with no cosigners or lienholders. This is the main requirement with any car title loan provider. We need a paid off vehicle to use as collateral for the loan.
• Have proof of income, such as pay stubs or bank statements. We need proof you can repay the loan.
• Compare title loan lenders to get the best deal possible. Some companies offering car title loans in Atlanta or Albuquerque may have fewer requirements and require less documentation than what we typically see from lenders offering California title loans.
• Only borrow what you can afford to pay back. Don't take out a loan that you can't pay back! Avoid repossession by limiting your loan amount and paying more than what's required monthly.

 

I Understand The Current Lending Requirements - How To Apply

Once you know what you need for a title loan, you can quickly get pre-approval and determine the best repayment terms. Gather all the necessary documents and apply with Highway Title Loans online or call 877-433-5454, and we will contact you to finalize the underwriting of your loan!