You may wonder, are title loans without proof of income possible?
Unfortunately, the answer is “no,” but there’s a catch.
You can get a title loan without a job if you have proof of income. That’s because employment and income verification aren’t the same thing. With title loans, you may be a good candidate if you have consistent income, whereas bank loans require you to have a traditional job in most cases.
The fact that you don’t need a job allows more people to get title loans as long as they have proof of income.
Types of Income Title Loan Lenders Allow
There are many types of income lenders allow for car title loans, including:
- Part-time income
- Side hustle income
- Passive income
- Social Security or disability income
- Severance pay
- Tax returns
- Court ordered monetary settlement
The key is to have official proof of the income. For example, if you are on disability, you could provide your disability insurance award letter to prove your income. The same applies to a worker’s compensation award letter or Social Security benefits.
You may qualify for a title loan if you can prove consistent receipt of the income.
Can I Get a Title Loan While Unemployed?
Title lenders typically allow you to get a title loan if you are unemployed, as long as you have other proof of income. Lenders typically ask applicants for proof of consistent income, not proof of employment, so it doesn’t disqualify you if you’re out of a job.
Good to know: Don’t apply for a title loan if you aren’t sure you can repay it. For example, if you’re unemployed and your current income source is short-term, don’t risk losing your car.
Qualification Requirements For a Title Loan Without Proof of Income
To qualify for a title loan without proof of employment, you need the following:
- Proof of ownership of a vehicle without any liens
- Proof of consistent income from a source other than a job
- Proof of residency
- Proof of insurance (if applicable)
Required Documents to Get a Car Title Loan
To get final approval on a title loan, you must provide the following:
- Statements from your bank account, retirement fund, or award letter
- A copy of your title with your name on it
- Pictures of the vehicle’s interior, exterior, and odometer
- A copy of your car insurance and registration (where required)
- Government-issued ID
Benefits of Title Loans Without a Job
When you need money, an auto title loan can provide the necessary funds quickly. Here are some benefits of a title loan without a job.
Access to Fast Cash
If you’re experiencing an emergency, time is of the essence. Fortunately, title loans fund fast, sometimes as soon as the same day, or the next business day. The key to getting funds fast is to provide the necessary documentation as quickly as possible for the lender to evaluate and approve.
Retain Your Car
Dealing with financial difficulties often means giving up collateral in exchange for the funds, but not with title loans. You can keep and drive your car, even after receiving the funds. The only thing you cannot do is sell the car until you pay the title loan in full.
Bad Credit is Acceptable
Most traditional loans require average-to-good credit; if you don’t have it, they decline your loan request. On the other hand, title loans don’t focus on credit scores, which means borrowers with bad credit may still qualify. Instead of focusing on credit scores, title lenders focus on the vehicle’s value and the borrower’s ability to repay the loan.
How Much Can I Borrow Using a Title Loan Without a Job?
How much you can borrow using a title loan depends on many factors, including:
- Your ability to repay the loan
- The vehicle’s value and amount of equity
Most lenders allow loans of $500 to $50,000, but each borrower may receive a different amount.
What Happens to My Car When I Borrow a Title Loan?
You keep your car when you borrow a title loan, but remember, it is the loan’s collateral. This means if you don’t follow the loan agreement, the lender can repossess your vehicle. It’s imperative that you make your payments on time, and if you can’t, contact your title lender to determine your options to avoid losing your car.
Final Thoughts
Title loans without proof of income aren’t legit, but title loans without proof of employment are a possibility. The key is to prove to the lender (and yourself) that you can afford to repay the loan. While loans with no income aren’t possible, you can get title loans without a job, just be careful not to risk vehicle repossession by not repaying the loan as agreed.
If you think a title loan is the best option for you to handle your financial emergency, apply here and get an answer about your eligibility quickly.
