What is a Car Title Loan?
Cat Title Loan is a type of loan that requires the borrower to provide the vehicle title as collateral for the loan. Since Loans can be secured and unsecured, you should be aware that a Title Loan is a secured type of financing. As a rule, it is borrowers with bad credit who use secured loans, since they give lenders more guarantees that the person will pay off the loan on time. However, you must understand that a Car Title Loan has some risks. If you are unable to repay the loan on time, the lender may sell your collateral in order to pay off the loan debt.
How much can I get with a Car Title Loan?
The loan amount often depends on how much your car costs. Experts pay attention to factors such as brand, mileage, car cost, and more. Typically, you can get up to 50% of the value of your car.
Do I need to have income to get a Car Title Loan?
Oftentimes, title lenders want to see that the borrowers have a regular income. In this way, they get a kind of guarantee that the loan will be paid off on time. If the borrower has no income, the lender cannot be sure that he has the money to repay the loan. Thus, the loan application is unlikely to be approved.
However, please note that traditional jobs are not the only ones that qualify as a source of income. There are many other types of payments, such as government benefits, investments, under the table income, trust fund, and more.
Also note that there are lenders who do not care if you have an income or not. It is enough for them that you provide the car as collateral. Thus, it may be more difficult, but you can find a lender who will provide you with a loan without proof of income.
How to get a Car Title Loan with no income verification?
If you cannot provide proof of income, you need to prove to the lender that you can make regular monthly payments. Consider the following factors to help you increase your chances:
• Credit history. If you have a good credit history, this will show lenders that you have previously paid your payments on time and can repay a loan.
• Utility and rental payments. You can show the lender a long repayment history and prove to them that you are making regular payments and can handle the loan debt.
• Bank Statements. Your bank statements contain information about the money you receive. Thus, you can show that you receive some kind of income, payments from the state an so on.
• Requirements. Review the eligibility criteria of the selected lender and make sure you meet them. It will help you increase your chances of being approved.