What Are The Different Types Of Documents Required To Secure A Car Title Loan?Fast Action Finance
Car title loans, otherwise referred to as simply ‘title loans’ or ‘auto equity loans’, are loans that allow you to attend to financial-related emergencies using your car as your collateral. The loanable amount is computed based on your car’s equity and your car, even if it is your collateral, remains in your possession. This loan will guarantee giving you some fast cash to bridge income gaps but of course, you have to be reminded too that there are certain documents required for you to be able to secure it. Amongst these documentary requirements are the following.
Documents pertaining to residency
Title loans are not always available in all places all over the world. The lender will always check on your residency requirements just to check if your locality does allow for securing auto equity loans. Apart from helping lenders know whether you are qualified for a loan based on where you are living, these documents will likewise help them verify your identity and capacity to pay. What are examples of these documents? You may ask. This will include utility bills, phone bills, house deed or in some cases a lease statement coming from your landlord if you are renting a home.
Documents for identification
Like residency documents, identification documents are crucial when securing a car title loan. In this case, you will then be required to present either your Social Security number or driver’s licence so the company can verify your identity. In some instances, though, you may actually own a vehicle but are not yet given the licensed to drive at the moment. For this type of situation, you must present other valid proof of identity like passports or military identification for the lender to make use of for verification purposes.
Documents for your vehicle
If there is yet another set of documents crucial to securing a car title loan then that will be no less than your vehicle documents. Your vehicle documents should show that you are indeed the owner of the vehicle and that are no existing liens on that car of yours. In this case, the lender will ask you both the vehicle registration and title. In some instances, loan companies will also request documents showing proof of insurance. This will be a sort of protection on their part in case the car gets stolen or will be damaged for the period with which your loan is enforced with them. For those of you who may have had previous liens on your car, make sure that the lien is released before applying for a title loan. In line with this, you are expected to provide proof that the lien has been released by the most recent lienholder.
Documents of your finances
Never fret if a lender will ask you for necessary financial documents before granting you a car title loan. They will use this to assess your capabilities of paying off the loan. Of course, these lenders want to make sure you can afford the payment terms. In this case, you will be required to present your pay-stubs if you are a wage earner. Bank statements, tax records and other business documents will be required for self-employed borrowers.
Do not worry if you are unemployed and you feel like you are not eligible for the loan. You can be granted the loan provided that you have statements coming from your locale’s department of social services. If you are retired, you simply have to present your SSA, pension or retirement account statement. In short, whatever your status in life is at the moment, you can be entitled to a car title loan with the help of some financial documents that your chosen loan company will require.
Documents presenting reference information
Yes, your lender will require you to have references too. You may need about two to five references as these people will be used by the lender to ascertain not just your capability to repay the amount you will borrow out of a car title loan but also your character. References are not immediately contacted by some lenders but they can make use of their help in case you default on payment. It will be good to have a mix of both professional and personal references on your list. Specify their names together with their phone numbers and how you are related to them.
These are but some of the documentary requirements when securing car title loans. Documents may vary from one company to the other. It will pay to ask what else will be required before you can secure such types of loans. You can also ask about anything related to car title loans which do not necessarily pertain to the documents these loan companies will require. Feel free to voice out your concerns before signing up the contract.