When you’re struggling to make ends meet, you need a loan option that can work with you. While many unsecured loan options are available, they do not cater to borrowers without a strong credit history and financial background.
If you are approved for an unsecured loan, you may encounter obstacles, such as high-interest rates and unexpected loan terms. So, where can you turn to find financial relief? A secured loan can often be a better option for those considered subprime borrowers struggling financially.
Typically, you do not need a great credit score to qualify for a car title loan. However, there are specific requirements you must meet. This includes an age requirement, vehicle requirement, and even specific documentation. You may wonder- is it possible to get a title loan with no insurance? Keep reading to learn more about the ins and outs of title loans.
The Necessary Documentation to Apply for a Car Title Loan
When applying for any loan, you will need to provide the lender with a few documents. The required paperwork can be used to verify things like your income, your age, and even your vehicle ownership. Typically, during the application process for a car title loan, you can expect to need:
1. Proof That You Can Repay the Loan:
All lenders want to see that you can repay the loan promptly and without too much difficulty. That is why you must provide a title loan lender proof that you can afford to repay the loan. Pay stubs, bank statements, or a disability check can do this. It just depends on the lender and the type of income you have!
2. Proof of Address in Your State:
While title loans can be a great resource to utilize, they are not available in every state. So, part of the paperwork you must submit must show that you live in the state your car is registered in! You can prove your address through recent utility bills, bank statements, etc.
3. Government or State Issued ID Card:
The convenience of applying online is great, but it also means that someone could apply in your stead. You do not want your identity stolen! That’s why you need to show proof that you are who you say you are during the application process. Use a passport, driver’s license, or even a Real-ID to prove your identity.
There may be other required documentation, but these items are the most significant! If you are going to apply for a title loan, make sure to have these on hand.
What Type of Information Do I Need to Submit to Apply for a Title Loan with No Insurance?
While not all title loan options are created equal in terms of interest rates and terms, most of their applications are similar. Typically, you will submit a prequalification form online. This helps speed up the process and get you to the next step! You’ll likely need to provide the following information through the form:
- Name, Address, Phone Number
- Birth Date and Year
- Year, Make, Model, Style, and Mileage of your car
- Social Security Number or ITIN ( Individual taxpayer identification number)
Applying for a Car Title Loan with No Insurance
But, is car insurance required to apply for a car title loan? While liability coverage is required by law in almost every state, not all vehicle owners have it. This may put you at a disadvantage during the inquiry process for a car title loan, as your vehicle will not be as secured as it could be.
However, you may still be able to qualify for a car title loan with no insurance. It will depend on a few factors, such as your lender and state. Comprehensive coverage is extremely important for a title loan, however. You want to be as protected as possible while paying off your title loan! With a title loan, your vehicle is the collateral for the loan. This means that you are essentially borrowing off your car’s current equity. So, it is advantageous to have insurance and protect your asset! Without insurance, you may be vulnerable if you leverage your vehicle for funding.
Learn more about a ChoiceCash title loan today! Find out if your income and vehicle qualify for funding.