What documents do I need for a title loan?

When you're in a pinch for cash, a title loan might seem like a viable option to help get you through a tough financial spot. However, as with any financial decision, it's essential to be prepared and understand what you're getting into. Knowing what documents you need for a title loan is the first step towards making an informed decision on getting a title loan. It's very important to keep in mind title loans can have interest rates as high as 291% and get you stuck in a cycle of debt.

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Documents you might need to get a title loan

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1. Your Vehicle's Clear Title - This is the most crucial document. A clear title means the vehicle is paid off and has no liens against it. The title must be in your name, as this shows you have the authority to use the vehicle as collateral. If the title is not clear or in your name, you'll need to address those issues before seeking a title loan.
2. Government-Issued Identification - You will need a government-issued ID, such as a driver's license or a state ID card, which confirms your identity and matches the name on the title. Make sure your identification is current and valid.
3. Proof of Residence - Lenders often require proof of residence to ensure they can contact you if needed. A utility bill, lease agreement, or mortgage statement in your name should suffice.
4. Vehicle Registration - The car registration must be current and in your name. It shows the lender that the vehicle is legally registered to drive on public roads.
5. Vehicle Insurance - Most title loan companies will ask for proof of insurance. This is to ensure that the vehicle, which serves as the loan collateral, is protected in case of an accident.
6. Proof of Income - While you won't necessarily need to be employed, you should provide evidence of a steady income. This can include recent pay stubs, Social Security or disability benefits, or other documents that prove you have the means to repay the loan.
7. Pictures of Your Vehicle - sometimes, with online title loan applications, you may be asked to provide pictures of your car from different angles, including the interior, the odometer, and the VIN number.

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Every lender is different, and some may require additional documentation. The above checklist covers the general documents you'll likely need when applying for a title loan.

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Remember, it's imperative to borrow responsibly, ensuring you fully understand the terms of a loan and your ability to repay it. As tempting as it is to go for quick cash, make a considered decision.

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Compare the cost of Yendo versus a traditional title loan

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The Yendo Car Secured Credit Card

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That's right, you can use your car, much like you might do with a title loan, to access up to $10,000 in credit using your car title. A Yendo credit card means ongoing access to money, generally a lower rate that is also fixed, ability to use it anywhere Mastercard is accepted and the flexibility to use it as you wish.

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Features & benefits

• Credit limit - access up to $10,000 in credit, our average credit limits are $4,4000
• App - the Yendo app let's you manage your account, wherever you are. Track spending, make payments all on your phone
• Virtual card - access a portion of your credit limit prior to getting your physical card in the mail with the Yendo virtual card. You can continue to use your virtual card even after your physical card arrives as well
• Cash advances - ability to do cash advances on your card
• Credit limit increases - we periodically check customer accounts and offer up credit limit increases, so the limit you start with might not be the limit you end up with
• Unlimited cashback rewards - 1.5% unlimited cashback on eligible purchases when enrolled in Autopay
• Credit building - with responsible usage, you can not only have access to ongoing credit, but also build your credit for potential future financial options

Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.