What to Bring When Applying for a Car Title LoanFast Action Finance
Are you ready to apply for a car title loan? You need the right paperwork to get approved the same day.
Don’t worry. You don’t need to run to the courthouse or the bank. Most of what you need is likely sitting in your filing cabinet already.
Here’s what you need to bring when applying for a car title loan.
Three Types of Documents You Need to Apply for a Car Title Loan
Car title loans¬†don’t require any underwriting or credit checks. Instead, you borrow based on the value of the vehicle and your ability to pay it back.
To that end, you need to¬†bring documents¬†that fall under three categories:
- Proof of identity
- Proof of vehicle ownership
- Proof of residence
As¬†proof of identity, you need to bring your driver’s license as well as two pieces of further identification, including:
- SIN card
- Permanent resident card
- Birth certificate
- Health card
- Firearms acquisition card
- Other government-issued ID
Your names should match on all IDs, and they should all be current. Proof of ID is essential because you can only borrow against a car¬†you own. The lender needs to ensure that you are the full owner of the vehicle.
As proof of vehicle ownership, you need to bring both your vehicle¬†and¬†your original ownership papers and proof of insurance. These papers guarantee that the car is in your name. If the car has a second current owner, then that person also needs to sign-off on the loan.
You should also bring in further documentation demonstrating proof of address. A recent utility bill works. Be sure that it shows the address and a current date.
Additionally, you need to bring your pay stub, if you get one. One or two current paystubs works just fine. Although you don’t need good credit or a full-time job, the lender wants to be confident that you are comfortable paying back the balance of the loan over the loan period. If you are self employed and do not get regular paystubs, this is not a problem. In this case be prepared to show what you do for income.
What Other Items Might I Need?
You may also need to bring a spare key if you have one for the vehicle and a void cheque. If you don’t have cheques anymore, then you will fill out a pre-authorized payment form. Pre-authorized payment forms are very easy to obtain. You can get them from any branch of your bank and in most cases get them online if you use online banking.
Do you want to¬†apply online? Instead of bringing the vehicle in physically, you can send eight high-quality pictures of the car, including:
- Left and right side
- Front and back (including license plate)
- Odometer (not trip meter)
- Front and back interior
- Door VIN
These pictures can be taken with any smartphone and emailed. In addition, the other documentation needed and described above can also be sent in by taking clear pictures with your smartphone.
Finally, if the vehicle isn’t in your name only (meaning there is another name on the registration other than yours), then you need to provide¬†written permission¬†from the other owner. If they don’t give you permission, then they need to sign on as a co-signer on the loan. To get permission from the other person, the lender will provide you guidance.
What if It’s a Company Vehicle?
You¬†can borrow¬†on a company car, but only if you own the company.
You¬†cannot borrow¬†on a company car provided to you by another employer.
If you intend to use your company’s vehicle as collateral, you need to provide extra documentation proving that you own the company. You will need to show your¬†articles of incorporation. In this case, your name must be listed as a director on the articles of incorporation.
Do I Need a Credit Check?
Your credit doesn’t matter. Although you provide your ID, you can still borrow whether your credit is ruined or a work in progress.
You can even get a title loan if you are in an undischarged bankruptcy or a Consumers Proposal as long as your vehicle qualifies for the loan.
If you apply during bankruptcy or Consumers Proposal, you may need to provide additional documents to prove that your vehicle qualifies.
What If I Have a Lien on the Vehicle?
If you have a lien on the title, then you typically do not qualify for a car title loan. In some cases the lender can pay off the current loan on the vehicle and provide you with extra funds. The lender can see if there is a lien in place when you submit your documents.
In some cases, you can apply for another product like a repair loan. However, you need to discuss your case with the lender directly.
How Much Can I Borrow?
You can borrow up to 50 percent of your Black Book value. The maximum loan amount tends to sit at $25,000.
The lender offers you the maximum amount you can borrow, but you are under no obligation to take the full amount. If you are borrowing to pay a bill, you may find it simpler to borrow only as much as you need the first time around.
If you need to borrow for a repair on your vehicle, you can do this in a separate product. Additionally, you don’t need to own the car to apply for it; leased and financed cars also qualify for¬†repair loans.
Also, if you own a movable piece of equipment that can be left with the lender you can borrow this way.
How Quickly Can I Receive My Loan?
As long as you bring all the necessary documents with you, you can receive the funds on the same day you apply.
If you apply online, you will get a response during business hours. You will either hear from the lender by email or by phone, so double-check that all your details are correct before submitting your application.
Questions About Applying for a Car Title Loan?
Applying for a car title loan is easy. Unlike applying for traditional financing, you don’t need to provide stacks of bank statements or paystubs. All you need is proof of ID, proof of ownership, and proof of residence.
If you are facing exceptional circumstances and can’t provide one of these documents, don’t panic. You can talk to the lender in person to learn more about your next steps.
Are you ready to apply for a car title loan?¬†Click here¬†to learn more about how to get such a loan from Fast Action Finance on the same day you apply.