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Things You Will Need for a Title Loan

A title loan is a secured loan that uses your vehicle as collateral. To get a title loan, you’ll need a clear (or lien-free) title to your vehicle and meet the lender’s minimum eligibility requirements. This means you must outrightly own the vehicle and have no outstanding loans or liens against it.

Here are six must-have items to get your car title loan approved:

Original and Clear Vehicle Title

If a client defaults on their title loan, the lender retains the right to repossess and sell the vehicle to recoup their losses. To do that, they must have an original title of your car, truck, or motorcycle. Think of it as assuring you honor your end of the bargain.

The title must be in your name and free from liens or loans. It shouldn’t be mutilated, altered, or defaced in any way. Make sure it’s clean, legible, and properly signed. If not, you’ll have to apply for a new one from your local Department of Motor Vehicles (DMV).

Government-issued Identification

To qualify for any loan in the United States, you must be above 18 years old and prove you’re a U.S. citizen or permanent resident. That means having a valid form of identification, such as a state-issued driver’s license, passport, or military ID. 

The identification document helps confirm your identity and verify that you’re of legal age to enter a loan agreement. 

Proof of Residency

Proof of residency helps the lender verify that you’re a resident of the state or locality where you’re applying for the loan. They can make informed decisions, avoid potential fraud, and verify compliance with your state’s laws and regulations. 

A recent utility bill, a bank statement, or a rental agreement should help prove your residency. Most lenders will accept either a physical copy or a scanned document.

Vehicle Insurance Proof

You must have vehicle insurance in many states to get a title loan. The lender wants to make sure the vehicle is protected in case of an accident or other damage.

If you don’t have vehicle insurance, you may still get a title loan, but you may have to pay a higher interest rate or put up additional collateral. In some cases, you may not be able to get a loan at all.

Make sure the insurance policy is up to date and in your name. If you don’t have insurance, the lender may require you to purchase it before they give you the loan.

Proof of Loan Repayment Capability

Proof of ability to pay in car title loans doesn’t necessarily imply having a steady source of income. The lender simply wants to assess your capacity to repay the loan.

You can prepare recent pay stubs, bank statements, or any other documents that can help demonstrate your financial ability. These documents will help you show your ability to pay and stick to your payment plan, which boosts your chances of being approved.

Working Copies of the Vehicle’s Keys

A lender may ask for a working copy of the vehicle keys as collateral. This requirement is in place to protect the lender if you default on the loan. The keys provide them access to your truck or motorcycle if you fail to clear your loan.

Most lenders will ask for an original key, not a copy, and it must be in good working condition. Once you’ve settled your loan, they’ll return the key to you.

Apply For a Car Title Loan From a Reliable Company

Title loans can be an excellent way to access cash if you don’t have time to wait for a traditional loan. It’s a good option if you need money fast and have collateral for the loan. Make sure you research to find a reputable lender and be aware of the risks involved. Simply create a checklist and then convert it in scannable code to quickly access it. 


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