Having cash for all of your purchases is almost impossible, and when we are making a big buy, we don’t always have enough money for the investment. When we need to buy a new car, a new home, or when we choose to make remodeling from scratch, we usually need more than just a couple of thousand dollars. In those cases, we usually need financial support from a lender, and as you already know, there are a lot of types of loans and mortgages that you can choose between to get the funds that you want, for the investment you want to make. Title loans are one of the most popular ones, and they come with a number of benefits. On the same note, you should know that this type of borrowing needs to be backed up with collateral. More often than not, the collateral is the thing that you are purchasing. This usually is the vehicle that you want to buy, or you can use the collateral to get cash. In this 2022 guide, we are going to tell you more about the rules when it comes to this type of mortgage, and we will tell you if you can get a title loan without proof of income.
Source: corporatefinanceinstitute.com
Requirements
The first thing we are going to tell you is what the requirements are to be able to get these funds from a lender. You should know that every person who applies for a loan must be at least 18 years old and they need to have a valid ID to prove their age.
The next thing that is required is for you to be the sole owner of the collateral that you want to use for the funds. As we previously mentioned, the collateral is usually a vehicle, so it must be registered in your name, and you must be the owner of it if you want to be able to put it as a guaranty for the funds. Once again, you will need to provide the proper documentation, and the name on your ID must match the name that is put on the vehicle’s ownership details and registration of the car.
The same goes for real estate, even though this type of guarantee is not that frequently used with title loans. If you want to put your home as collateral, you must be the owner of the house, or the original owner must be the one applying for the funds.
Lastly, in most cases, you will need to provide proof of income and to show the lender that you will be able to make the monthly payments and that you are a secure and trustworthy person to give the funding to. However, this is not always the case, and now we are going to talk about if it is possible to get that funding without showing that you are employed.
Source: easyknock.com
Can you get one without proof and income
Now let’s talk about the way this funding works, and about title loans. As we mentioned before, in some cases, you won’t need to show proof of income to get this type of funding.
First, let’s see all the different types of income that are accepted by lenders. Many people believe that you can only get approved if you are employed, but this is not actually the case. Every person that has some type of source of income, can apply for funding, and chances are, they are going to get accepted.
The type of funding can include payouts from investments, any type of government funding, and even financial supports or scholarships. As long as you get some type of funding every month, that counts as income.
On websites like atlantatitlepawn.com, you can see that with the right lender, you can get a lot of benefits of the title loans, and you don’t have to go through all the time-consuming processes in order to get approved for this type of funding.
So, as you can see, most of the lenders will ask you for some type of proof of income or funding, if you want to be able to apply for the title loan. Nevertheless, there are those that will allow you to get the funds without showing proof of income. Note that this is only done when it comes to smaller loans and when your collateral is enough to show the lender that you will either pay out the loan, or they will get the full ownership of the goods that you put a guarantee.
According to title pawn companies, the main thing that you need to do is find a trustworthy lender that is going to provide great customer support, that will be there to help you with your specific case, and that will be willing to accept various payment types that fit your needs and possibilities.
Source: carsforyourhelp.com
Benefits and drawbacks
When it comes to the advantages and disadvantages of this type of funding, you should know that the biggest benefit is that you will be able to get your funding fast without having to bother with lengthy processes that will require a lot of energy. You will get everything done really quickly and you will get the funding when you need it. You won’t have to wait weeks or even months to know if you have been approved for funding, and you will be able to purchase the goods you want as soon as possible. There is no credit check when it comes to this funding, and you will still be keeping your collateral until you pay the cashback.
There are not too many disadvantages of the process, and the biggest problem that people have with them is that they are short-term, and the cash should be paid back within a few weeks or a few months. The interest rate starts pretty low, but the longer it takes you to pay the funds back, the bigger the interest is going to be. You need to be careful on when and why you use these fundings, as they can seem like they are the way out for every problem and you may start using them too often.
As you can see, you don’t have to provide proof of income with every lender that you collaborate with, but more often than not, this will be required. Talk to the lender about the options you have, and what would be the best for your needs.
