CAR TITLE LOAN
REQUIREMENTS TO KNOW

Title Loan Requirements – What’s Needed To Get Approved

– A clear vehicle title with proof of ownership: This is the main requirement for a title loan. Your car’s title must generally be lien-free. However, some lenders allow loans even with an existing loan if there’s enough equity. In these cases, they’ll typically pay off your current lender and add that amount to your loan balance.

– A verifiable income source: Most title loan providers want to see that you have sufficient money coming in monthly.

– Identity verification: As with any other secured or unsecured loan, you must show proof of identity with a passport, driver’s license, or government ID card.

We will get into other secondary documents and paperwork that may be required. Still, the items listed above will be needed with nearly every title loan company you apply with. There may be situations where you borrow a low amount of cash or still owe a bit of money to the original lender, but those are outliers. Most title loans will require proof of ownership equity, identity, and income, and once you meet those requirements, you will be well on your way to getting pre-approved for a loan of $2,500 or more.

Documents & Paperwork Required For A Car Title Loan

Once you know what’s required for a title loan, the next step is to determine exactly what documents are needed. Let’s break down the documents that most licensed lenders require.

– Vehicle Ownership Paperwork: Your car’s title must list you as the current owner, and in most cases, there can’t be any lienholders, cosigners, or other claimants on the pink slip.

– Government-Issued ID: Depending on the state, you may also need proof of residency.

– Proof of Income: We can verify income through bank statements or pay stubs from your employer. That way, we know you can afford the monthly payments.

– Insurance Documents: Most title loan companies require proof of current insurance coverage to ensure they’ll be paid if the car is damaged or totaled. Sometimes, you may need to supplement the current insurance coverage with gap insurance that pays out the vehicle’s market value.

– Vehicle Registration: You must provide documentation from the DMV showing your car is registered for the current year.

In addition to the documents mentioned above, your vehicle will likely need to be inspected at a lending location or at a location of your choice. Your lender wants to know that the car has enough equity and is worth the current resale amount. In addition, they’ll check the vehicle for physical damage and other mechanical issues. The inspection should take one hour or less and involves a visual inspection of the vehicle and confirmation of the VIN and odometer reading.

If you still owe a small amount on your vehicle, you won’t have the certificate of title. However, in certain scenarios, some lenders may still work with you depending on the remaining balance and your vehicle’s equity.

Applying For A Car Title Loan – How To Get Started

Find a local title loan provider – For example, Premier Title Loans can connect you with a company that offers fast funding in most states, with the option to get cash in person or send it straight by ACH to your checking account. Some customers would instead apply with a local company, and that’s no problem. Premier Title Loans offers pre-approval with online title loans across more than 30 states, and the first step is determining your state’s lending limits and requirements.

Gather your documents – As discussed in the title loan requirements section, you’ll need certain documents when you start the online application process. All licensed lenders require these documents, and it will be difficult to get approved without a clean, clear vehicle title and proof of income.

Loan underwriting and processing – The last step before you sign your documents and add the lender as a lienholder to your vehicle is underwriting your loan application. This process typically takes a few hours.

What Else To Know About The Essential Title Loan Requirements

As mentioned above, the main requirements for online title loans include proving vehicle ownership, equity, identity, and income. Those requirements are essential because title loan lenders use them to assess applicants’ ability to repay the loan and to ensure there’s sufficient collateral available in the event of default. Here are some other things title loan applicants should know when reviewing the Premier Title Loans lending requirements:

– You must have the vehicle title in your possession and hand over the pink slip to the lender. No company will offer a loan if you don’t have the vehicle or the car’s title.

– Your lender must be added as a lienholder on your car’s title, and they ultimately have first rights to the vehicle for the life of the loan. Unlike a title pawn that uses a vehicle as collateral, a title loan adds the lender to the car’s title. Before the cash is sent to your bank account, your lender will be added as a lienholder on the certificate of title. Depending on your state, this will be done electronically or through an in-person DMV visit.

– Most auto title loans are issued for anywhere from one to 48 months, depending on your state’s regulations. Remember, the quicker the loan term, the less interest you’ll pay. Repayment terms of three years or more make it difficult to pay off your loan, as interest accrues monthly.

– Your vehicle can be repossessed if you don’t make your monthly payments. Title loan repossession laws protect you in most states, and many states require that lenders provide notice before your vehicle is repossessed. In some states, you may have the right to redeem your vehicle by catching up on past-due payments, even after the vehicle has been repossessed. Nonetheless, contact your lender if you risk defaulting on a title loan and try to work out a repayment plan.

– Title loans have high interest rates that can exceed 100%, and in some states, approaches 200%. Review your state’s rates and lending restrictions on our title loan state disclosures page before applying.

Loan amounts and title loan requirements vary by state, so it may be best to speak with us for an individual consultation. Feel free to contact Premier Title Loans to learn more about our lending requirements or to start an application. Call us at 800-250-6279 to see what you need to qualify.