What Do You Need for a Title Loan? The Requirements Explained

what do you need for a title loan car loans

Believe it or not, more than 78 percent of the workforce lives paycheck to paycheck and struggles to make ends meet. If you’re one of them, you know that loans can help you cover those unexpected expenses when they pop up between pay periods.

However, you don’t have to head to the bank and deal with a lengthy application process when you need money fast. You just need to choose the right type of loan.

Car title loans are a great way to help you get money quickly without going to a bank, but the requirements for those loans are distinctly different. If you’ve been asking “what do you need for a title loan?” this is what you need to know.


Proof of Ownership

You can only get a title loan for a car that you own outright. This means you’ll need to present proof of ownership before you can apply for the loan in the first place.

If you have a copy of your original title, bring that with you to the appointment. Keep in mind that the title must have your full name listed as the owner. If you’ve misplaced or lost the title, you’ll need to request a replacement from your local Department of Motor Vehicles.

If you’re not the sole owner of the car, you’ll need the other owner to authorize the application for the loan. Remember, the car is your collateral and if you fail to repay the loan in full, the lender can take possession of the car. The other owner needs to be okay with this risk before the lender can issue you the money.

It also won’t hurt to give your car a little TLC before you bring it to the lender. Remember, the nicer the car looks, the more it’s worth, and the more you’ll be able to get from the lender.


A Valid Government-Issued ID

You’ll need to show a valid government-issued photo ID like a driver’s license, passport, or state identification card to be able to complete the application. This is one of the most important car title loan requirements to keep in mind.

If you don’t have an ID, the lender won’t be able to verify whether you’re the owner of the car. They also need to verify that you’re over the age of 18 and can legally sign all documentation before giving you the money.

If you’re under 18, you won’t be able to get a title loan even if you own the car outright.


Current Registration for the Car

One of the most common auto title loan requirements lenders expect you to provide when you apply is proof of current registration. If the car is not registered, call ahead to your preferred title loan company and see if they’ll still consider your application.

If not, you’ll need to apply for registration and obtain proof of that registration before you can get a loan.

Keep in mind that this requirement varies from lender to lender and is only legally required in certain states. That said, it’s always best to keep your car registered each year.


A Current Auto Insurance Policy

Your car should also be fully insured according to the state’s minimum insurance requirements. If you don’t have the policy in place, your application for a title loan may get denied outright.

If you’re not sure if your insurance policy is still current, call your insurance agent. They’ll be able to review your current coverage and make sure it meets the state’s requirements before you head to the title loan company.


Proof of Residence

Unfortunately, you’re only able to apply for a title loan in the state where you live. Title lenders will ask you to provide proof of residence for your application before they consider you for the loan.

Before you leave your house, make sure you have a piece of mail your name and current address clearly printed. This could be anything from a utility bill to a bank statement you received at the end of the month.

As long as it’s recent and shows that you use the address as your primary residence, you’re in good shape.


Bank Statements and Proof of Income

Before you can qualify for the loan, title loan companies often ask that you provide proof of income. This shows them that you’re able to make the minimum payments once you receive the money.

You don’t have to be currently employed to qualify, but you do need to receive a steady amount of money each month. If a friend or relative gives you money to help you make ends meet, this may be enough to satisfy the requirements.

Bring a recent bank statement, paystub, or wage statement from your employer to the lender when you apply.


Don’t Be Afraid to Shop Around

When you’re trying to find a title loan company to give you the money you need quickly, avoid settling on the first lender you find. It’s always best to shop around and compare quotes from several lenders.

By shopping around, you’ll also be able to compare requirements and choose a lender that you’re confident you can work with. Don’t be afraid to take your time.

Ask each lender you speak with for clarification on the loan’s terms. It’s okay to be blunt. Don’t hesitate to ask “how do title loans work?” when you’re considering applying for one. If the lender can’t explain the process, they’re not worth working with.


Know You Know the Answer to “What Do You Need for a Title Loan?”

If you’ve been scouring the internet for answers to, “what do you need for a title loan?” this guide should help. Keep these requirements in mind when you start looking for car title loan lenders.

Remember that the exact requirements may vary from lender to lender. Always find out exactly what documents you need to provide before you fill out your application. This will save you the frustration of having your application denied or delaying the car title loan process.

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