What Are the Qualifications For Getting A Personal Title Loan?

When money is needed quickly, you may not have a lot of options available. Your main concern is to be able to get the money in order to cover the need. A personal title loan may be just the key you need to fill in the shortage of cash gap. The good news is that there are not many qualifications to get one.

The Car’s Title

One of the most important things about getting a title loan is that the title to the car needs to be in your name. You may also be able to use an official notice saying that the lien has been paid. In some cases, it may be possible to get a title loan if you have repaid the car loan by at least 90 percent. If they agree to lend you the money, you will leave your title with them.

Proof of Income

Besides having the car’s title, Investopedia says that you will also need to prove that you have enough income to pay back the loan quickly. Most title loans are for periods of 30 days or less, but some may be longer. If you cannot repay the loan in that period, more interest will be added. Because it is usually added monthly, it can add up very quickly.

To prove your income, you could show your recent pay stubs. Another way could be to present your recent bank account statements.

It is important to remember that the interest on car title loans is often quite high. One option you may have if you cannot meet the payment date is to retake out the loan. When you do this, however, you will be recharged new interest and fees, and this will be added to what you already owe.

An Official ID

It will also be necessary to present an official ID card with your photo on it. This can be a state driver’s license, or some other kind of ID.

An Assessment Will Be Made

If the personal title loan company is interested in lending you the money you are asking for, they will make an assessment of your car. Naturally, they will want to make sure that they could get their money back from the sale of your car if you should default on the payments.

It is likely that the car title lender will ask you for an extra set of your car keys. Some lenders may require a tracking device to be put on your car, and other companies may have different requirements.

A car title loan can be one way to get the money you need if you are not able to use other means. Consumer.gov advises that you make sure that you understand all the terms of the title loan before signing, and do not borrow more than you are sure you can repay.