When you’re in a financial crisis, it can be a tough time. This is when you start to look at some of your assets, trying to figure out which ones you can quickly offload. But that isn’t the only move you can make, as you can get a title loan against your car. A title loan is also known as the pink slip loan – there’s no difference if you have heard one or the other. There are a number of requirements for a title loan that you need to fulfill. Of course, the lender has to come and inspect the car first before making any determination. You need additional documents to get the loan, and they include.
1. Original Title Showing Ownership
When the lender asks for this, they expect to see the original title of the car. And the car’s title should be sole ownership of the vehicle. When it is shared ownership for the car, unless the other party agrees to it, you can’t get the loan.
At times, it is also unlikely to get a loan with a shared-ownership title, even if the other party agrees to it.
After giving the pink slip, you then need to produce a government-issued ID that matches the slip. Every name on your ID should match the one that is on the car title. It goes further to prove that you have ownership of the car.
3. Proof of Residence
For proof of residence, you’ll need to give the bank utility bills. You can also provide other proof of residency if you have any. They need to match the name that is on the title and the ID you have provided.
4. Vehicle Registration
You have registered the car; if not, you need to ensure that the vehicle is registered under your name. The lender will expect you to provide the car’s registration, and it should match your name.
5. Proof of Insurance
Insurance cover on a property is critical in securing a loan. The requirements with regards to documents are the provision of insurance. And the insurance needs to be valid, so ensure you have renewed your if it had expired.
6. Proof of Ability to Pay the Loan
The bank will also require to see some of your pay stamps and even bank statements. With that, they can prove that you have the means to pay the loan. You need to have at least a six months bank statement to get the loan.
The lender will also ask you to provide references when they can’t reach you. Here, you’ll have to produce the names and phone numbers of two references. The lender may also ask you to provide the addresses of the references.
All the documents you provide here have to be valid as they will be confirmed before the loan issuance.
8. Copies of the Car Key
You don’t only need to prove the keys for the car; you also have to give all the working copies of the car keys. This provides the bank with some assurance as they can easily pick it up from anywhere.
There are several documents that you need to provide before you can get a title loan. You need to have valid ones before you can apply for the loan. These are the relevant documents to have in order if you want to take up a title loan.
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