The state defines how any type of loan works, including the auto title one. In some of them, you’ll need to prove you have a steady income, while in others no such requirement is posed. Still, you should have a payment plan in order, or you risk losing your vehicle.
Is It Possible to Get a Title Loan Without an Income
It all depends on your place of residence and a loan provider. In some states, it is required by law from a lender to make sure you have enough money to pay off your debt. In others, the proof of income might not be needed but the amount of your loan is actually based on how much you earn.
Even if it is not required by the state, most of the trustworthy and reputable providers might ask you for proof of income, so make sure you have one before applying. If your credit score is bad, check out Bad Credit Loans in Montana.
What to Do if You Have No Income
Firstly you need to of course consider other options, but if you think that a title loan is the best fit for you, follow the below steps to get the best out of the situation:
- Think carefully whether you really have no sources of income. Being unemployed does not equal having to income. There are still pensions, social security and disability benefits, child support and alimony payments, and other welfare. The main requirement is that you get money each month.
- Get to know the law. Is it legal in your state for the title lenders to provide a $3,600 loan without income verification? If it is not – don’t try to work around the legislation, as this would put you at the big risk.
- If it is legal, compare a couple of different lenders to see which one offers the lowest APRs and better terms. Don’t forget to check if each one of them is licensed in your state.
- Make sure you qualify.
- Submit an application – whether online or in person. Keep in mind though that you will still have to provide your car for inspection even if you’ve started applying online.
- Sign the documents and get the cash
Things to consider before applying for a title loan
To not get into the vicious cycle of debt when you have to take out more and more loans to pay off the previous one, think about the alternative ways to get the money you need. Those can be:
- Charities, non-profit and government-funded organizations that can help you with the basic expenses, like food, shelter, medical emergencies, etc.
- Try to extend your payments. Talk to your landlord or your creditor and negotiate other, better terms, so you can have time to get your finances together and pay off your bills or debts in full.
- Consider taking on another job, getting a side gig, or signing up for an additional shift at your main place of work.
- Ask your supervisor for an early paycheck or a bonus.
- Ask a friend or a relative for financial help.
- Visit Bad Credit Loans in Nevada to get better rates.
Also, don’t forget to think about the risks you’re exposing yourself to when taking out a loan:
- The fewer requirements a particular lender has, the higher their rates are.
- When you use your car as collateral it is possible you might lose it in the case of default.
That is why we recommend to plan and budget very wisely so you avoid getting a title loan, and in the case you do, you surely can pay it back without damaging your financial situation even further.