Were you recently laid off by your employer and haven’t yet found a new position? Or have you been searching for months and the unemployment benefits have stopped? Either way, you may find yourself in a financial bind and in need of fast cash.
If you’ve tried to seek funding from brick and mortar banks and credit unions, they probably denied your application.
Fortunately, you may be able to qualify for an auto title loan online without a job or source of income.
Finding a Title Loan Lender With No Job or Income
No job or income? No problem. You can still get approved for a title loan through some lenders. To get started with the application process, you’ll need:
- The original title to your vehicle. It must be free of any liens or you will not qualify for a loan. The title will serve as collateral for the loan. And if you are unable to pay it off, the lender will be able to cut their losses.
- Government-issued photo identification. Regardless of the lender, you will need to provide a valid form of photo id to establish your identity.
The next step is completing the application and submitting it to the lender for review.
But before they can issue a loan decision, the lender will need to appraise your vehicle to determine how much it’s worth. This is also the figure the lender will use to decide how much they’re willing to lend you. (Remember: the lender won’t have concrete proof of your cash on hand, so this is an integral step in the loan review process).
Upon approval, you’ll be on your way with the cash you need to cover those unexpected expenses or financial emergencies.
How No Job or Income Title Loans Differ From Personal Loans
There are several key differences between personal loans and no job or income title loans you should keep in mind when researching your options:
- No credit check: Because no job or income title loans are secured by your vehicle, the lender is not concerned with creditworthiness. If you’re a credit risk, their losses will be limited by repossessing and selling your vehicle. But traditional lenders have no choice but to rely on your creditworthiness. This helps determine if you’re a good risk and the likelihood you’ll default on the loan.
- No income verification: Most traditional lenders also analyze your income to determine if you can afford to repay the loan. But income is irrelevant to this type of title loan as the lender is only concerned with the collateral.
- Cosigner not required: In most instances, traditional lenders will require you to have a cosigner to guarantee the loan before approving your application. “Having a co-signer on your loan gives your lender additional assurance that the loan will be repaid,” notes the Consumer Financial Protection Bureau (CFPB). But with a no job or income title loan, a cosigner isn’t required.
- Higher interest rates: Unfortunately, no job or income title loans come with higher interest rates. According to FTC.gov, the rates can go well into three-digits. Reasoning: these loans cater to the subprime market and are more risky for lenders than unsecured loans offered by traditional lenders to those who are good credit risks.
How Long Does It Take to Apply?
Loan application review times vary by lender. But it shouldn’t take more than a few hours to get approved and have immediate access to the cash you need.
How Much Can Money Can You Get?
It varies by the lender as each has their own loan minimums and limits. “On average, these loans are for $100 to $5,500. But they can be for $50,000 or more from some lenders,” notes FTC.gov.
How Long Does It Take to Pay Off a Loan?
The repayment period depends on the amount of the loan. In most instances, it will span between 15 and 30 days. But some lenders will give you six months or more to make payments if the loan is for a larger amount.
Are No Job or Income Title Loans Good or Bad?
There has been much debate regarding if no job or income title loans are a worthwhile option to retrieve cash. As with most no credit check loans, interest rates are exorbitant.
This makes payments much higher and could end up costing you a fortune over time. Even worse, your finances can take a tumble if you’re forced to keep rolling the loan over month after month. (Rollovers equate to more interest and fees).
So, be sure to read the fine print before applying so you’ll understand exactly what you’re getting yourself into or you might be applying to a debt relief program soon.
Most importantly, doing your homework could help you dodge a bullet and search for better options elsewhere. Plus, you won’t have to worry about getting your car repossessed if you default on the loan.