Car title loans often require proof of income, however, it is possible to get a title loan without income verification. This does not mean that you can get a title loan with no way to repay the loan.
No Income Verification versus Ability to Repay
There is a difference between no income verification and no way to repay the loan. It is possible to be fully capable of repaying the loan without having to provide verification of income.
Additionally, there is a difference between not having a job and not having any income. It is important to note that most title loan companies will require the borrower to have a means of repaying the loan.
Title lenders use a variety of methods of “income verification”.
Purpose of a Title Loan with no Income Verification
There are a number of reasons for needing a title loan without income verification. The most common is not having the ability to provide verification of income from steady employment (a job).
Not having a job is not the same a not having the ability to repay the loan. In some cases, the vehicle itself can be used as a source of funds to repay the title loan without having to verify income.
How to Get a Title Loan without a Job
It is possible to get a car title loan without a job. The loan is secured by collateral, your vehicle, so not all lenders require proof of income. It is highly recommended that you have a way to repay the loan.
Car title loans are secured loans. This means that if you default on a title loan it can result in repossession.
Just because you have no job currently does not mean you do not have the ability to repay a car title loan. Perhaps the unemployment is temporary.
Maybe there is other income from other means. There also may be funds from the following sources as examples:
- Tax refund,
- Legal settlement,
- Annuity payment
- Pension, or
- Other source of funds.
Car Title Loans with no Proof of Income
To get a car title loan with no proof of income (or verification) you will usually need to provide some evidence of ability to repay the loan. The repayment ability can be from any source and does not need to be from employment. This means you can get a car title loan with no job.
Car Title Loans are Secured Loans
Car title loans are different from payday loans in that they are secured by the collateral in the vehicle. Essentially, you pledge your vehicle as collateral for the loan in exchange for the funds.
If you default on the loan, the lender can repossess the vehicle. Learn more about secured loans: https://www.experian.com/blogs/ask-experian/what-is-a-secured-loan/.
This is what makes it easy to get a no credit check title loan. You do not need to have good credit to get a title loan, but you do need to have some way to repay the loan.
Common Title Loan Income
The most common methods of providing the title loan company with proof of ability to repay the loan typically include regular income from a job, pension, Social Security, or other regular income.
This income is usually steady and on a regular basis such as bi-weekly or monthly.
These are not the only methods. You can still get a title loan even if you do not have regular income. Without the ability to provide proof of regular income you will need a title loan with no income verification.
How to get a Car Title Loan without Income Verification
Car title loans without verifying income form a job are available to borrowers with other means of repaying the loan. Funds to repay the loan can come from any source.
While the ability to repay the loan is most commonly providing with pay statements, these are not necessary. Funds to repay a car title loan can come from any source; not just income from a job.
The ability to repay the title loan can be from any reliable source. Some uncommon sources include:
- Tax Refund
- Legal Settlement
- Other one time payments
As long as you can provide some evidence of being able to repay the loan, many lenders will be able to approve the loan.
Car Title Loan with no Job and no Income
If you are trying to get a car title loan with no income, no job, and no way of repaying the loan, then you will have difficulty. The question you should ask yourself is how do you plan on repaying the loan?
If the answer is you don’t, then you may be better off selling the car. If you get a title loan and make no payments, repossession is likely.
Missing one title loan payment, or making one late title loan payment, is usually not a big problem. Not making any payments at all, however, is a problem that should be avoided.
How to get a Title Loan with no Income and no Job
Can you get a title loan with no job? Yes, it is still possible to get a title loan with no income and no job. You can use future income to repay the loan. Simply inform the lender that this is the case.
The future income needs to be from a reliable source. Usually this source is similar to one of the income sources mentioned above. In rare cases, you can use the vehicle as a back-up source of funding.
This means that if the initial source of funds to repay the title loan falls through for some reason; the back-up plan is the vehicle. You can sell the vehicle to generate the money to repay the title loan. This is preferable to repossession.
Vehicle as a back-up Source of Funds
It is also possible to get a title loan with no income, no job, and no way of repaying the loan. In this case you will need to plan on selling the vehicle.
You can get a title loan if you need immediate cash and want to sell the vehicle privately rather than sell it quickly at a discount.
Make sure to let the lender know that this is the reason you are getting the loan and confirm that they will cooperate with the sale of the vehicle. Then, prepare the vehicle for sale and place an ad.
This allows you to get the immediate cash needed. Then, you can still sell the vehicle at a higher price than if you sold it to a wholesale buyer.
To get an idea of the difference you can use Kelley Blue Book’s estimating tools to figure out the difference between the trade-in value and the private party value.
If you move forward with this type of title loan, make sure that the difference between the trade-in and private party value exceeds the cost of the title loan.
To be safe, assume it may take 60 days to sell the car. Then, use our car title loan calculator to estimate the cost of the title loan.
Can you get a title loan with no job? Yes, car title loans with no income verification and no job are possible. Always make sure to have a means and a plan to repay a title loan, even if repayment will come from the vehicle itself.
Remember that income to repay a car title loan can come from a variety of sources and does not need to be from employment.
As mentioned income can be from an annuity, pension, commissions, tax refund, legal settlement, or any other source. Just make sure to have a plan to repay the loan to avoid losing your vehicle.