Having no income does not automatically disqualify you for an auto title loan. The large issue with this is that many title loan lenders require some sort of income or verification of income. An auto title loan can be an alternative funding option that allows an individual to borrow money based on the equity of their vehicle even if they are unemployed. Using the title to a vehicle as collateral can help the borrower get cash quicker and easier than going to a traditional bank in most cases. If you are currently unemployed, don’t worry! You may still be able to qualify for an auto title loan.5 If you still receive a form of alternative income or have access to savings, you could be deemed eligible!
Why is Income Important When Applying for a Loan?
Proof of income shows that a prospective borrower has a steady income and will therefore be able to make monthly payments on time. A lender likely does not want to lend to you if you are unable to make consistent payments.
What Qualifies As Income For An Auto Title Loan?
These are ten types of documents a lender can ask a borrower to provide as proof of income.
- Unemployment Documentation
- Pay stubs
- Bank statements
- Tax returns
- W2 form
- 1099 form
- Employer Letter
- Disability Insurance
- Pension Distribution Statement
- Court-Ordered Payments
How Do You Prove That You’re Unemployed?
If you receive a form of alternative income, such as pension income, you do not always need to prove that you are unemployed during the application process for a car title loan. However, individuals can request an unemployment verification letter from their former employer to apply for unemployment benefits or programs through their state or federal agencies. If you are unemployed, some lenders can ask for a verification letter.5 You may not think it is possible to get a title loan while unemployed, but it is! As long as you have a form of alternative, steady income, you can still potentially apply for the cash you need.5
What Are The Auto Title Loan Requirements?
For the pre-approval process with Max Cash Title Loans, you may need to provide an alternative proof of income, proof of residency, a driver’s license as well as a couple of other things for example:
- Free and Clear Vehicle Title
- Three references not related to you
- Insurance (some states require this but not all)
- Social Security or ITIN
- Pictures of your car (all 4 sides including VIN and Odometer)
How Much Cash Can I Get?
Loan officers are professionals who are trained to problem solve with their clients to come up with an agreement that will be most manageable for everyone. That is what title loan officers are there for. Your loan officer and you can decide which payment schedule will be the best one for you based on your financial situation. Max Cash Title Loans is ready to help you get funded!1,5
Benefits of An Auto Title Loan
There are many benefits to getting an auto title loan using one of the best brokers around. Getting a great deal on an auto title loan by going through Max Cash can help you:
- Pay for a down payment for a family home
- Pay for unexpected medical expenses
- Pay for immediate home repairs
- Help you catch up on your finances and much more!
Repaying The Auto Title Loan
If you don’t have income, how will you pay your loan? Title loans can offer flexible requirements when an individual has emergency bills or other expenses.1 If you are without a job, but you still have a reliable way to pay back the loan, you could be approved for a title loan!1 Aside from a traditional paycheck, you could use other forms of income to qualify for an auto title loan.
Let’s just say you have a history with the bank. If you have money saved in the bank that shows enough to cover the repayment of the title loan, you could potentially use those statements as proof of income.
Pay My Loan As Fast As Possible
The tips below may help you pay off your auto title loan in a shorter amount of time and could save you money on interest.
Rounding up your scheduled payments to the nearest $10, $20, $50, or even $100-dollar increment.
- Make One Big Lump Sum Payment Each Year
- Don’t Miss Any Loan Payments
- Make more frequent payments
What Are My Income Options if I am Unemployed?
Are you currently not working? Here are a few examples of alternative income you can provide during the inquiry process:
Retirement and Social Security Benefits
One of the ways you can provide proof of income is through the benefit verification letter. This letter will let the lender know that you are receiving some type of payment and could pay back the loan in the future. Retirement income is beneficial to people that can’t provide a traditional paystub and are currently not working.
If you are a receiver of Social Security benefits, these may qualify for proof of income as well.
If you own property and make passive income through investments, simply bring in the bank or applicable statements as proof of income. This can also potentially count as income for lenders.
Don’t Wait to Apply for a Car Title Loan Online
When you go with Max Cash Title Loans, you’ll be working with a company that sets you up for success. Not only will your lender most likely give you a FREE quote when you’re approved, but they can also create a payment plan just for you. Using convenient terms and competitive rates⁴, they can make a payment plan that works for your unique lifestyle. A car title loan can be easy when you work with qualified and experienced car title loan agents. You can call us or even text us at 855-561-5626, we are waiting by the phone to help you!