Things needed to get a title loan
A title loan is the kind of loan where the borrower puts up his or her car as collateral. It is a safe kind of loan since the lender allows you to pay the loan in different installments while you still own the asset. But, it is good to know that you have to follow the agreements about the loan payment to the letter otherwise your car will be ceased to repay the remaining balance of your loan.
These are the requirements that you need to get a title loan.
The Personal Documents
You need to provide all your identification documents that prove that you own the car at hand. These documents include the car title with all your names and also to determine that you are the one who drives it, you have to present a valid driver’s license as well. Just make sure that you give all necessary documents that prove that you own the car and you are capable o driving one.
Your Residency Documents
Since not all the states that allow this process of getting a loan, you need to prove that you are within the same country and city with the lender for security purposes. Therefore the lenders usually expect you to present your home address, a particular utility bill in your house maybe electricity that has been paid in recent time. You must show your home or land lease documents to verify that you live in that location before you are given a loan.
Provide Your Financial Records
Although you are using title loans to get some financial aid, you still need to prove to the loan lender that you are capable of paying back the money. If you are employed, the charges will be cut depending on the salary you earn per month, and for those who own a business, you have to have been able to pay tax for the last three years. For those who are borrowing money under the social security funds, they ought to provide a letter from the institution. The retired borrowers can provide their pension documents or even your SSA.
The Vehicle Documents
This is another way of proving that you on the vehicle. Therefore provide all the documents about the car. This includes the registration number, with a date and all the processes; you must submit a vehicle title of the same. There has to be an insurance cover for the vehicle as the lender will require it for protection in case the car gets stolen or damaged while in their hands.
The loan lenders will need some proof that you are capable of paying back their money. Therefore they require you to bring along three or more references who can attest that you are capable and you are a trustworthy person.
For those who plan to use their car title as collateral for acquiring a loan, make sure to have the above essential documents since they will be required in the processing of the loan by the lender.