Title loans often come with a high-interest rate and finance charges, so it is important to know what you need to get approved for one. Vehicle title loans are usually done through a state-licensed lender, so make sure to do your research before choosing one.
You will want to have a car that can be used as collateral and must also have the legal right to use the vehicle.
The applicant must live in their residence or pay rent on time each month without paying delinquent taxes. You are also required to be 18 years of age or older, legally employed full-time, self-employed with your business license, an active military service member, or retired from work. Here are the requirements for title loan approval.
Valid Driver’s License
You will need a valid driver’s license to get title loan approval. You cannot change this later on, so make sure it is not expired when you start this process. It does not matter if the license has been suspended or revoked. In some cases, you will be required to file for reinstatement of your license before you can get any loan.
Also, make sure your license is not a photocopy. Licenses in which the picture has been cut out and glued in are also unacceptable, so make sure it is an original license copy. If you have recently changed or updated your name on the license, you might need to resubmit proof of this change with your licensing agency for approval.
Vehicle Title
The applicant will need their vehicle with a clear title to get title loans. The applicant must have full ownership of the vehicle and cannot owe payments on it. If there is a lien on the vehicle, the applicant must have agreed with any co-signers before receiving title loans in Miami.
The vehicle must be in working order to get a title loan. The applicant may also need to provide additional documents, such as their current vehicle registration and proof of insurance. You will use this to prove you have full ownership of the vehicle and take it for a test drive before making a final decision.
Proof of Residence
To get a title loan, you will need to prove that you currently live in the area. This is usually done by showing a phone or utility bill in your name. If you are not currently living at the residence, the applicant may provide two forms of documentation that prove they pay rent independently.
Proof of residence is also required so that the applicant can show where they have been living over the past two years. It is important to have a trustworthy citizen history before applying for any loan.
Proof of Income
You will need to provide proof of your income when you get approved for a title loan. You can do this by providing pay stubs from the previous two months. If this is not an option, the applicant may also provide their tax returns for the last year. Some lenders may allow someone who does not work to get approved if they have another source of income.
Your income will be used to calculate how much you can afford for your monthly payments and the finance charges you will owe at the end. For example, if you have a job that pays $1,500 per month and your finance charges are 12% APR, you will owe $165 for one month.
18 Years Old or Older
Applicants must be at least 18 years old to get title loans. If you are older than this, there may still be options available to get approved. This is something that the lender will look at when processing your application.
Legally Employed Full-Time
The applicant must be legally employed and working full-time to get approved for a title loan. They must have consistent paychecks coming in at least twice a month and submit valid work verification documents if necessary. The earnings must cover both the monthly payments and finance charges.
For those who work at a place that requires you to receive your paychecks by direct deposit, you can use their routing number to verify your account if necessary. This is only required for those who do not have bank statements as proof of income. Most lenders will require that borrowers show that they have been maintaining a checking account for at least three months.
Getting a title loan can provide you with quick cash for an emergency. As long as you have the required documentation, there is no reason why you cannot get one. Getting started online can be a fast process for those interested in seeing if they qualify to help you obtain the money you need.
