Title loans are one of the fastest loan options available, along with payday loans and other short-term loans with high interest rates. But it’s typically more difficult to get a loan when you don’t have a job, because the lender will want to see proof of income. Otherwise, they’ll worry that you won’t be able to pay back what you borrow.
There are ways that you can get a title loan with no job. Here are your options and what you’ll need to keep in mind to avoid financial troubles later.
Apply in a State that Doesn’t Require Proof of Income for Title Loans
With title loans, it’s important to understand that they work very differently depending on what state you’re in. Each state sets its own title loan laws, and these state laws can affect the application requirements for a title loan.
Title loans aren’t legal in every state. In the states where title loans are legal, it’s actually rare for the law to require lenders to get proof of income. In most states, the lender will only need to check your ID to verify that you’re at least 18 years old, inspect your car and get your car title from you. They return the car title once you pay off the title loan.
There are a select few states where the law requires lenders to check every prospective borrower’s income and verify that they will be able to pay back what they borrow.
If you’re in either a state where title loans are illegal or a state where title loan companies need to get proof of income, you can always go to a state with more relaxed title loan laws. There aren’t any laws requiring you to get a title loan in your state.
Prove Your Income in Another Way
Crossing state lines could be a big inconvenience depending on where you live. If you’re trying to get a title loan with no job but you are making money, you can also find an alternative method to prove your income.
The easiest option would be to print your banking statements for the last few months and show that to the lender. Even in states that require income verification, that income doesn’t need to be from a job. If you’re a freelancer or you run your own business and can prove that you’re making money from it, then you can still get a title loan.
You don’t need to show the lender your banking records if you want to keep that private. Other options include showing them your PayPal account or copies of checks from your clients. Any record that shows how much you’re making over a specific time period will work.
The Application Process
The application process for a title loan doesn’t take long. All you need to do is go to the lender’s office with the required documentation. If income verification is necessary, bring something to prove how much money you make.
You’ll go in, show the lender your ID, and then fill out your loan paperwork. You’ll also provide income verification, if necessary. The lender will briefly inspect your car and get your car title from you. After that, they’ll issue the loan. The entire process may not even take you an hour.
Staying Safe with Title Loans
There are plenty of situations when title loans are a helpful option, but these loans can also lead to a cycle of debt if you’re not careful. Remember that these are short-term loans, and in most states, lenders will set terms of just 30 days. If you can’t pay off your loan on the due date, you’ll need to roll it over, which is a term for extending your loan. This costs you more in interest and fees.
You should always have a plan regarding how you will pay back your title loan. If you have no job, a title loan can help you get by, but you’ll be in a more difficult situation if you fail to pay it back in time. Plan ahead now to avoid greater financial troubles later.