Know the Documents You Must Have for a Title Loan
A title loan allows someone to apply for a loan and submit their car title as the guarantee. The good thing about title loans is that the borrower can use the car while paying for the loan. In an event where one is unable to pay off the loan, the lender will then sell the vehicle to recover the loan funds.
It is important to note that only the vehicle’s owner can secure a loan using its title as collateral. With that in mind, the following are the various kinds of documents required to get title loans, according to Provo’s Utah Money Center.
The lending company will need your social security number and driver’s license. This is a mandatory requirement as it is the most legally accepted way to prove your identity. A valid passport or a national identity card can also come in handy for someone who owns a car but does not have a driver’s license yet.
Not all states offer title loans. Therefore, residency documents will help verify that you live in a state that permits them. This could be anything from a receipt from your landlord to electricity and phone bills.
You will need to convince the title loan company that you are financially stable. Documents such as monthly pay slips, bank statements, and tax records act as proof of your financial stability. If you are retired, you can produce documents such as retirement account statements or pension.
These include vehicle registration and title. These will confirm that there is no existing lien. It is also to show that you rightfully own the car. The lender also needs to see that the vehicle is fully insured.
Your references will help the lender decide whether you are eligible for a loan, based on your character. If you are unable to pay off the loan and the lender cannot reach you, they will contact your references. Ensure you give at least three reliable references.
A title loan could be just what you need to meet that urgent financial requirement. If you have a vehicle and its requirements, go ahead and bridge that financial gap.