Requirements that You Must Meet to Get an Auto Title Loan
A car title loan is one of the quickest and hassle-free ways to get money for emergencies. Unlike the normal bank loans, the lenders of car title loans in Tallahassee do not take you through rigorous processes such as having to get guarantors and credit checks.
The loans are structured to be repaid within 30 days, which means if well-managed, they will not create a long time financial liability on your part.
However, it is important to understand the requirements that you are supposed to meet to get these loans because there are people who fail to meet them and end up missing out on loans or facing complications with the repayments. Here, is what you need to know about car title loans.
Proof of vehicle ownership
Your car will be acting as collateral for this loan. This means that you have to prove to the lender that you won the vehicle. The DMV issues certificates of vehicle ownership upon registration and this is the document which the lender will be looking for as proof of ownership.
In case for some reason you are unable to get this certificate, which proves that you own the vehicle, there are some lenders that will allow you to borrow against the vehicle’s equity, but only in some states.
Proof of monthly income
The idea is to get the money to deal with the emergency and then give it back within a stipulated period, which in most cases, is 30 days. Proof of employment includes paystubs from your current employer.
Note that these must be recent. In case you do not have current paystubs, there are bank records which are acceptable to lenders. You just need to speak to the lenders and get the documents in order to prove that you are employed and capable of repaying the car loan.
A government issued ID
This is the document that the lender will use as proof of identity. Government issues IDs include Driver’s Licenses, State ID card, Passport and similar documents.
Normally, the lender will ask to retain a copy of the ID, and they will verify the details against the relevant databases to ascertain their authenticity, especially the SSN number.
The personal details on the government issued ID must therefore agree with the details used to get the vehicle certificate.
Proof of vehicle insurance
This is a requirement that depends on the amount of money that you want to borrow. If you are looking for more than $2500, most lenders will want to know that the asset being used as collateral is insured.
This is an important requirement because, during the period of time that you will be repaying the loan, you will be allowed to use your car for your normal errands, which means that there is the risk of getting into accidents and losing the vehicle. The insurance information assures the lender that their money will be repaid, regardless of what happens to you.
Normal bank loans usually require that you give a number of guarantors before they can assess your credit scores and offer you money. The role of the guarantor in a normal loan extends to even making the payments in case you default, which is why they are vetted.
This requirement is different when dealing with car title loans. The references the lenders require are simply people who know you. When supplying the references, you will be required to give details such as their address and a home or work telephone number where they can be contacted.
It is recommended to have your list of references when you make your first visit to the lenders. This will make it easier for the lenders to do their background check and make a decision on the approval.
You will also need to attach personal phone numbers and other documents which act as proof of residence. These will be verified by the lender because they want to make sure they can locate you.
The secret to getting approval is ensuring that the details you give are as accurate as possible. These are the requirements that you have to meet to get a car title loan. Car title loans lenders have become so efficient that it is now possible to make the application through online sources and then complete the process later.
An important tip is to make sure that you are able to make the payments on time as this will minimize the problems that you could possibly run into with the repayment process.