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Requirements for a Car Title Loan


 

Emergencies are unpredictable, and this means that you may have a financial crisis at any moment without the means of settling it. If such an incident catches you off guard, a car title loan may be what you need. In most cases, a car title loan refers to a title pawn that you can easily apply for and gather a high chance of receiving. This short-term loan, referred to as an "auto title loan," uses the borrower's vehicle as security for the loan sum. Let's find out some of the requirements for a car title loan.

Inspection of the Car

The car needs to be visually inspected for the lenders to decide whether you qualify for the loan or not. The inspection usually takes less than an hour, and it is important to remember that you must have a clear title to your vehicle to qualify for a loan. If you are wondering, how much can I get for a title loan? The answer depends on several factors, including the make and model of your car, its age and condition, and the current market value. Lenders typically offer you 25% to 50% of your car's value as a loan.

 

Personal Documents

Obtaining this loan requires you to have some paperwork like the original title for your car ownership, vehicle registration papers, phone number, and your identification card. Depending on the lender you are getting the loan from, the paperwork they ask for may differ as others may demand the car to get a GPS tracking device.

Proof of Vehicle Insurance

Your car will be collateral for the loan, so the lender will want to ensure it's properly insured in case of an accident. You'll need to provide a copy of your insurance card or policy declaration page when you apply for the loan. In some cases, you may also be required to add the lender to your policy as an additional insured driver.

Proof of Residence

When you want a car title loan, you must have proof of residing in the city where the loans are viable. Although some lenders provide these loans to different people from different cities, evidence of where you live can determine whether you will receive the loan. This way, they know where they can find you in case of anything.

Current Income

Applying for a car title loan might be easy, but it is not viable for jobless individuals. Having evidence of incoming money monthly is one of the modest requests most lenders demand people to comply with. Candidates must have some source of income to be considered, be it stable employment, trust, annuity, or anything else generating their money. This is mandatory as the lenders must ensure you will fulfill your end of the agreement.

 

Most lenders out there are stringent about the people they give loans to, and most do this depending on their credit scores. Those with poor credit scores fail to get the loans, but this is not a necessity with car title loans. With these loans, whether or not you get the loan is solely based on the vehicle's resale value and whether you have the capabilities to pay for the loan.

 

As long as you are above eighteen years old and own a car, you are a step away from getting a car title loan. These loans are reliable and can quickly get you out of a sticky money situation. You can try your luck if you have all the above requirements.

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