Title Loan Requirements: What you Do and Don’t Need

Published on: 15 June 2018 Last Updated on: 06 October 2020
Loan Requirements

A title loan is a type of a loan where an asset is given to act as collateral, popularized because of two main reasons:

  • When determining your qualifications, title loans don’t put your credit rating into consideration.
  • Title loans get approved very quickly for loan amounts of as little as $ 100.

This makes title loans some of the most convenient and efficient options in the lending market.

The Breakdown of A Title Loan :

Title Loan

A car title loan is the most common type of title loan. It’s a case where you as a potential borrower, you are obliged to be in possession of car outright and sign the title over to an auto loan title company.  The loan company will allow you up to 25% of the value of the car to the borrower and then retain the car’s title as collateral in case you breach the repayment agreement.

It’s worth noting that the amount you want to borrow must always be put into consideration. The value of your car or the commonly called – equity in the value will set the limit of the amount of money you can borrow.  If your car has a high value, so will be your title loan.

The lenders will in most cases lend you money they are sure they can get it back easily if they were to sell your car in case you default the payment.

With car title loans, there are no prepayment penalties, so it’s okay and not costly if you want to pay off your loan earlier.

Be Careful of Rolling Over :

 A lot of title loan cases end up in rolling over. This means that you decide to prolong your payment by another 30-day loan. The disadvantage of rolling over with your title loan is that it gets very expensive and every time you extend the loan you are penalized for new loan fees. There are cases where the process of extending a car title loan is controlled by the law.

Unlike the interest rates that you usually pay on credit cards, title loans have a very high cost despite the fact that there are laws that limit the interest rates. You, therefore, end up paying back more money than you actually borrowed.

The Risk of Losing Your Car :

Getting a car title loan sounds so good but there is always a big problem which is the risk of losing your car to your lenders. This happens in the event that you can’t pay back your lender. Your car will then become their possession and they sell it to get back their share of the money that they lend to you.

Car title loans are different from bank loans, typically they have easier requirements. Here are the key dos and don’ts you need to know to apply for a title loan.

What You Do Need To Apply FOR A Title Loan :

 You will need the following before going for a title loan:

  • Vehicle title with your name
  • Valid driver’s license
  • Proof income
  • Proof of residence

These requirements will be qualified in the following manner:

Vehicle Title with Your Name :

Vehicle Title

 Since the title loan is being given to you, the title of your car must be in your name, and lien-free or something close to lien free. What’s a lien-free car title? It simply means that you have total ownership of the car; it’s completely paid off with no outstanding balances or loans against it. Certifying that your vehicle is lien-free is important because the amount of money you are given on the loan is on the basis of the value of your vehicle at the time of application.

A Valid Driver’s License :

A Valid Driver’s License

 For proper verification of your identity, your valid driver’s license is required. In addition, the names on the form of identification must match the name on the title of the vehicle in order to issue the loan.

Proof of Income :

The companies that give you loans don’t necessarily depend solely on credit scores. Rather, you will be asked to show your proof of income like:

Paystubs

Bank statements

Monthly allowances such as retirement accounts

With proof of income, you basically tell the lender how much you can afford to pay back.

Proof of Residence :

Since title loans aren’t given to every region, you just have to prove your current residence and also certify that you have been an ongoing resident of your current residential area for the past two years.  This same requirement is still used to verify your identity.

What You Don’t Need To Apply For the Loan :

 There are so many misconceptions about what you need to apply for a title loan. Mostly, you might think that you need:

  • A good credit score
  • A bank account
  • A high-paying job

However, contrary to popular belief, none of these requirements are essential anywhere when applying for a title loan.

A Good Credit Score :

 You don’t need a perfect credit score for you to get a title loan.  A good credit score doesn’t necessarily prove your eligibility for a loan.

A Bank Account :

A Bank Account

 Are you worried that you don’t have a bank account? You don’t need to be. You will be provided with a check for your loan amount without having to give your account number from you.

A High-paying Job :

 This is one of the most popular misconceptions that is among many people. There are flexible payment options for a realistic repayment schedule and the amount you’ll feel comfortable accepting.

With the right kind of documents, you can easily get a title loan. You do not need to have a high-paying job, a good credit score nor even a bank account. All you need is a clean car title and the right kind of financier willing to lend you the money.

Read Also :

 

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Bankruptcy Myths

Debunking 7 Notorious Bankruptcy Myths

Bankruptcy is a serious step in anyone’s life and can have serious consequences. However, in many cases, bankruptcy is the only way out for some and can bring about the much-needed change as it helps them get rid of old debts. Understanding how bankruptcy affects you is key when deciding whether to file for bankruptcy with the help of experienced attorneys such as the BK Lawyers. People often turn to familiar people who have been through the same thing or try to find answers regarding bankruptcy on the internet. And while in some cases this might provide the answers they seek, in others, it may bring a lot of misinformation. There’s no reason to turn to unreliable sources for advice when in most cases bankruptcy attorneys don’t charge the initial consultation during which they can provide answers to all the questions you may have about the process. Therefore, we recommend consulting an experienced attorney before consulting the internet. To help you better understand bankruptcy, we are going to debunk some of the most common myths. You Can’t Travel Overseas after Filing : Many people believe filing for bankruptcy prevents you from traveling overseas. However, the truth is that a trustee will let you travel overseas as long as you make the required payments and provide the required information. You’ll also need to provide financial information regarding the trip, for example, who’s financing it, where you’re traveling, etc. Filing for Bankruptcy Costs a Lot : As we mentioned, the initial bankruptcy consultation is usually free. Reliable sources you can consult about bankruptcy include trustees, insolvency experts, and AFSA. You’ll Love Everything : One of the most common myths is that filing for bankruptcy means you’ll lose all your assets in order to pay off your debt. Depending on the debt, you may be allowed to keep a lot of assets including your household items, furniture, and appliances. You may keep a significant portion of your balance to cover the costs of living. In some cases, you may be allowed to keep your vehicles to a certain value, as well as tools of the trade. However, most people worry about losing their home. And even if your home has to be sold to cover your debts, you may arrange to purchase it from the bankruptcy trustee. Your Earning Will be Limited : There are no limits to your earning when you file for bankruptcy. However, if you earn more than a certain level you’ll need to make some contributions every year during the period of bankruptcy. The Debts you leave off the Bankruptcy Form are Not Included : When filing for bankruptcy you need to submit a form listing all your assets and debts. This form is called a Statement of Affairs form. Leaving information out of this form is considered an offense for which you may be criminally prosecuted. While you need to fill out the form as precisely as possible, leaving out a debt unintentionally will not affect whether that debt will be included in the bankruptcy. You Have to File for Bankruptcy if You Can’t Pay Your Debts : There are other ways to cover your debts, but in most cases, bankruptcy is the most effective one. Bankruptcy has a minimal impact on your finances if you’re not able to cover your debts through selling assets and earnings. IF you have a higher income or have reasons to avoid bankruptcy (if you’re a CEO) you can refinance your home, arrange a debt agreement or make informal arrangements to cover the debt. You’ll Never Get a Loan Again : While your bankruptcy is recorded in the credit report seven years after filing and it’s recorded in the NPII, there are still ways to help people with bankruptcy get back on their feet. Credit providers are willing to assist individuals who filed for bankruptcy to get a loan despite that.

READ MOREDetails
Tax Attorneys

What Skills Do Alex Mitchell & His Team of Tax Attorneys Offer?

No matter your tax debt issues, bankruptcy filing concerns, or estate planning inquiries, hiring the appropriate tax attorney will help guide your decisions and plans. Choosing the ideal representative depends upon your specific needs. Tax experts typically work within law firms, accounting firms, or as solo practitioners and specialize in particular areas such as estate, international, or business taxes. Specialties Tax attorneys combine legal knowledge and accounting expertise to assist their clients with complex tax matters. They may work with individuals, business entities, and governments on tax matters - representing individuals in new legislation interpretation or longstanding tax law application cases or representing people facing tax controversies. Tax attorneys can save their clients money by filing returns early or taking advantage of deductions to reduce taxes; they can also appeal court decisions or simply help prepare wills and trusts documents. Before hiring a tax attorney, seek references from past clients as they will give an accurate sense of their abilities, professionalism, and personality. Once your options have been narrowed down further, find out how much their services cost per hour; some offer flat fees while others bill by the hour. Experience Tax attorneys possess expertise in handling various situations and keeping up-to-date on federal and state laws that change frequently, making this one of the most rewarding areas of law practice. You can click the link: https://www.ncdor.gov/2022-tax-law-changes to learn more about local taxes. Tax attorneys serve a diverse clientele, from individuals and small- and large-sized businesses, nonprofits, government agencies, educational institutions, and health care organizations. Some work as in-house counsel for corporations, providing advice on structuring business transactions effectively while managing tax liabilities and adhering to regulations. Tax attorneys offer much more than tax advice and planning services; they also assist clients with disputes with the Internal Revenue Service (IRS) related to taxes. If you are facing an IRS dispute, look for a Raleigh, NC tax attorney with extensive experience handling audits, payments, collections, and negotiations with this government agency, as this allows them to help protect clients against liens, wage garnishment, or property seizures by the IRS. This can help make the process easier. Finding an experienced tax attorney may seem like a daunting task, but asking around can help. Start by speaking to friends, family, and coworkers if any have used one in the past and reading reviews online as well as checking client feedback. Once your options are narrowed down it's important that the person you hire is both experienced and affordable - avoid firms demanding full payments upfront as these might use high-pressure sales tactics and should be avoided at all costs. If you're investing a significant sum, a tax attorney can provide guidance and advice to minimize your tax liabilities while investing wisely so your money grows over time - this advice is especially vital if you're new to investing or have received substantial inheritance or lottery winnings. Tax attorneys can also be invaluable resources when it comes to estate planning. They can advise you on how best to legally transfer assets between generations while minimizing tax payments, as well as help create trusts so your estate doesn't become subject to taxation upon your death. Communication Skills Tax attorneys possess specialized skills that are invaluable for those in need, whether filing their taxes on time, appealing court decisions, or saving businesses money on taxes. Their strong communication abilities allow them to guide clients through difficult financial circumstances effectively. Once licensed, tax lawyers can specialize in multiple fields including corporate tax law, estate planning, and federal income tax. Additionally, they may act as legislative assistants or serve on the staff of congressional committees dealing with tax issues. Many taxpayers require assistance when it comes to navigating the complex IRS codes and procedures or facing legal matters like criminal tax investigations and tax evasion charges. You can visit this site to learn more about tax evasion. Working with an experienced tax professional is often invaluable in terms of saving both time and money by preventing expensive legal penalties from accruing quickly while solving their issues efficiently. CPAs or enrolled agents may offer less extensive help, while tax attorneys possess greater training in dispute resolution and must abide by attorney-client privilege to safeguard confidential information provided to them. Tax attorneys provide assistance for various tax matters, such as audit representation, reducing fines and penalties, and lifting wage garnishments or bank levies. They can also aid small businesses with payroll tax matters and self-employment taxes as well as provide guidance for issues that might impact future growth of their businesses, such as international tax law or securities offerings. Analytical Skills Tax attorneys must possess strong analytical abilities in order to assess complex legal codes, accounting records, and financial data in order to select the most beneficial plans for their clients. Tax attorneys also perform research and analysis on any new laws or changes that might impact tax law, providing advice about their impact on individuals or corporations they advise - another way they help clarify things for their clients and customers. Assuming someone is looking to establish a new business, they may have many questions regarding how the law might impact it. A tax attorney can offer guidance regarding various options and ways in which an entity might be set up in order to minimize taxes and penalties. Tax lawyers also provide services related to mergers and acquisitions to determine how these will be taxed, represent clients in tax disputes with the IRS, assist individuals in managing their own tax obligations using deductions and credits, as well as advise on international taxation issues pertaining to how countries tax their citizens and businesses. There are many situations and circumstances where a tax attorney can come in handy. Whether you are a business owner, have received a sizeable inheritance, or are facing legal repercussions for past taxation mistakes, a tax attorney is trained and ready to help you through. Read Also: Tax Implications For Independent Event Planners The 5 Best Places to Sell Taxidermy Mounts 6 Ways to Stay Sales Tax Compliant

READ MOREDetails
credit card

Here’s Why The Airtel Axis Credit Card Is The Perfect Credit Card For You!

Airtel Axis Credit Card has been gaining immense popularity lately, mainly due to its attractive features, such as welcome benefits, cashback offers, and so on.  With these features, it has undoubtedly become an irresistible choice for many people.  Let us understand its key elements in detail below: Read it and know what this is a best buy credit card. 1. Cashback Benefits Well, this has to be the best. Airtel Axis Credit cards provide several cashback benefits to its customers. They are as follows:  No.SpendsCashback1For regular utility bill payments, for instance, electricity, gas, and so on through Airtel Thanks10%2Airtel mobile with broadband facilities, DTH, wifi bill payments via Airtel Thanks25%3Preferred merchants10%4Other spends and merchants1% Note: Cashback will not be applicable on fuel spends, EMI transactions, wallet loading transitions, purchases converted to EMI, jewelry purchases, rental payments, and so on.  2. Welcome Benefits It includes an Amazon voucher worth Rs. 500. Claim the welcome benefit by following the instructions mentioned below: Head straight to www. amazon.in/addgiftcard Submit the code of the gift card Press ‘Add to Your Balance’  With these steps, one can quite easily add the gift card amount to their account.  In addition to this, you need to keep the following terms and conditions in mind as well: Every customer needs to make the first transaction within 30 days If a user ends up canceling, refunding, or choosing a cash transaction, they will not be eligible to receive the welcome benefits of Airtel Thanks Axis Credit cards The welcome voucher will be applicable for cards that have been charged with a joining fee of Rs. 500 and taxes on their Airtel Axis Bank Credit card The voucher will be sent to the registered mobile number or email ID within the first 30 days of meeting the requirements.  Related: 5 Smart Ways to Boost your Credit Score 3. Complimentary Lounge Access The Airtel Axis Bank Lounge Access Program is based on the following entry types (rules of the program): Entry Type 1: The eligible cardholder does not have to pay any fee (exceptional than just a nominal swipe with the fee of Rs. 2 for the Visa facility and Rs. 25 for Mastercard options). Entry Type 2: The eligible cardholders need to pay a particular amount that will be displayed at the Participating Airport Lounge.  The eligible cards have to be authenticated at the entry point by simply swiping a transaction for a small fee. The lounge access program will be applicable only till 31st August 2025. 4. Fuel Surcharge Waiver Another great thing about having an Airtel Axis Credit Card is the fuel surcharge waiver. So, come, let’s find out more about them in detail below:  1% fuel surcharge waiver on the purchase of fuel at every fuel station across our country It is valid on transactions between Rs. 400 and Rs. 4,000. However, the maximum benefit will be offered up to Rs. 500 per statement The users will not receive a refund on GST charges on fuel surcharges.  These key features make an Airtel Axis Credit card an exciting option for everyone. So, what are you waiting for? Get the card in these few steps mentioned below:  Step one: Open the Airtel Thanks app and head straight to the ‘Shop’ section.  Step two: Click on the ‘Airtel Axis Bank’ option. In doing so, you will be able to view a screen showing the benefits of your smartphone  Step three: Scroll down below to tick the checkbox of ‘Terms and Conditions’  Step four: Once done, select ‘Check eligibility’  Step five: Then, follow the instructions as shown on the screen and submit your PAN Card details in the app  Step six: Fill out your basic information  Step seven: Enter the data about your employment  Step eight: Enter your residential details  Step nine: Complete the verification process,  To sum up, an Airtel Axis Credit card is a great option for everybody. So, get one today and make the most of its attractive features. Also, install the Airtel Thanks App through the Android Play store or iOs app store, as it is one of the best recharge and bill payment apps that enable simplified online payments within minutes. Conclusion: When you are planning to have a credit card, there are certain types of things that you must analyze first? What are the credit limit and the security aspects of the cards? Usually, credit cards are always giving a better financial advantage. That means you will get the privilege of paying after actually buying the products. But my suggestion is when you get any credit cards, always go for the security options. As secure credit cards give you better safety and security even when you are facing card thefts. And Airtel axis credit cards are among the best, most secure cards. Additionals Ultimate Guide On Green Card Renewal How to Dispute an Error on Your Credit Report How To Replace Your Social Security Card Online Using Short-Term Loans to Help Rebuild Your Credit Score

READ MOREDetails