Car Title Loans With No Income Verification

Michael Collins
May 17, 2021

Do you need a source of quick cash but have a bad credit score? If so, a car title loan might be an option you should think about. 

However, car titles usually have many more requirements for borrowers than smaller loans would. One such requirement might be an income verification, which is basically the lender making sure you have a source of income that will help you be able to pay the title loan off. But what if you don’t have a source of income? Can you still get car title loans with no income verification? Keep reading and you’ll find out! 

What is a Car Title Loan? 

Before we get into car title loans with no income verification, it is important to understand what a car title loan actually is. 

A car title loan is a loan that requires you, the borrower, to use your car as collateral for a loan. Two main types of loans exist: secured loans and unsecured loans. Unsecured loans are loans that do not require the borrower to put up collateral for the loan. These loans are riskier for lenders and are less risky for borrowers. 

On the other hand, secured loans require the borrower to put something up for collateral. Common secured loans are car loans and mortgages, which require the borrower to use their car or their house as collateral. If they fail to pay back the loan, the lender can take whatever the borrower put up for collateral, like a car or a house. As you can see, secured loans are riskier for borrowers and are less risky for lenders.

A title loan is a secured loan. In a title loan, you temporarily give up the title of your car in exchange for the cash from the loan. When the loan is paid off, you get your car title back. If you fail to pay back your car title loan, a traditional lender has the ability to legally take the title of your car from you, which means you lose your car. Unfortunately, these loans are pretty difficult to pay back, which causes many people to have to forfeit their cars. 

Title loans are generally used by people with poor credit scores. Individuals with better credit scores are often regarded as “safer” investments by lenders while individuals with bad credit scores are regarded as “risky.” To let someone with a bad credit score get a loan, a lender might require the borrower to use their car title as collateral for the loan.

Risks of Car Title Loans

As you might be able to see, car title loans are extremely risky for borrowers. Cars are often extremely important parts of our lives. We rely on them to go to work, get groceries, and to get just about anywhere. If you rely on your car, having to live without one might be an extremely difficult and burdensome thing. 

Car title loans may not give you more cash than your car is worth, but they still might require you to give up your car title. Think about it; you get a $2,500 car title loan but your car is worth $5,000. If you fail to pay back your loan, you not only lose your car but you’ve forfeited about $2,500 in value as well. 

Oftentimes, car title loans are expensive and must be paid back in a relatively short period of time. This makes paying these loans very difficult. If you can’t pay back one of these difficult loans, you will lose your car. As you can see, car title loans can be extremely dangerous and problematic and can pose a huge risk for any borrower that wants to get one. 

Need cash? Avoid the loan sharks and let Possible help. 

Download

Do I Need Income for a Car Title Loan?

Most lenders will want to see that their borrowers have a source of income. A source of income is not just a job, however. There are many sources of income other than jobs, such as government benefits, payouts from investments, and others. Whatever the source of income is, lenders will like to see that this income is substantial and is regular. 

If borrowers have a source of income, this shows lenders that they have the means to be able to pay back their loans or credit cards. If they do not have a source of income, lenders will be unsure if the borrower will be able to pay off the loan and they will likely not approve the borrower. 

However, not every lender requires borrowers to have a source of income. One such loan is a car title loan. While many lenders will require a source of income for their borrowers, not every car title loan lender will require that the borrower has a source of income.

Many of the lenders are satisfied with using your car title as collateral, and they will not necessarily need to see income documentation. For some of these lenders, they don’t exactly care if you have a source of income. If you default on their loan, they will simply be able to take your car and sell it; oftentimes for thousands of dollars. Lenders like these will allow their borrowers to get their car title loans without income verification. 

How Much Money Can I Get from a Car Title Loan?

The amount of money you can get from your car title loan mostly depends on how much your car is worth. Remember that lenders can take your car if you fail to pay back your car title loan. As such, lenders will generally favor more expensive cars. If you have a car worth $5,000, you will be able to get a larger car title loan than if your car is worth $2,000. 

How to Get a Car Title Loan With No Proof of Income

Having proof of income can be difficult. For one, you may not have a job that provides you a steady source of income. You may be an independent contractor or a gig-economy worker that gets paid in very irregular intervals and in very different amounts. If this rings true for you, you might get your loan application denied even if you are making money. 

If you do not have proof of a source of income or your lender does not approve your source of income, you will need to show your lender that you are trustworthy in other ways so that they will not deny your loan application. Here are some of the best ways to do that:

  • Credit History: If you have a long history of successfully making payments on all your loans and all your credit cards, your credit history will show this. If you have a good credit history, it  will look very good in the eyes of the lenders. It will show them you have a history of making payments and can be trusted to make payments on the car title loan. If this is the case, you can provide your credit history to the lenders to show that you can be trusted with a car title loan. 
  • Bank Statements: Your bank statement shows important information about the status of your bank account, such as the balance as well as any money that is coming in and out of the account. If you have a bank account that is seeing a steady flow of cash, few expenses, and a healthy balance, your lender may be happy about this and approve your loan. 
  • Utility and Rent Payments: Showing your lender a history of your rent and utility payments can be a great way to show that you can be trusted to make payments. By showing your lender a lengthy history of payments that are made in full and on time, you can show your lender that their money will also be paid back in full and on time. 
  • Pay Stubs: If you have a job but your lender doesn’t accept it as a source of income, you may need to provide your pay stubs from the job. Showing these to your lender will show that you are in fact getting paid and are making enough money to be able to pay off the loan. This does not apply to you as much if you do not have a job. 

Can I Qualify for a Car Title Loan with a Bad Credit Score?

As we discussed before, car title loans are most often used for people with bad credit scores. Using your car title as collateral for your loan greatly lowers the risk for lenders and they are more willing to lend to people with worse credit scores as a result. 

While you can qualify for a car title loan with a bad credit score, you will not necessarily be automatically approved for your car title loan. Many lenders have a credit score requirement that their borrowers must meet. If your credit score is below this threshold, you could find yourself getting your car title loan application denied. 

Some car title loan lenders may not even check your credit at all. Some lenders promise to never do a credit pull, which saves you from getting a knock on your score from a hard inquiry and allows you to get a car title loan whatever your credit score. 

Pros and Cons of Car Title Loans with No Income Verification

Car title loans can be difficult to understand. While we hope we cleared some of the air for you, you may still be wondering whether you should get a car title loan or not. Let’s take a look at some of the pros and cons of car title loans so you can properly make an informed decision about car title loans. 

Pros

  • No income verification: Not having to prove your income to get a car title loan can be huge. For one, you may not have a job or a source of income that other lenders with income requirements would allow you to use. Second, you may not even have a source of income in the first place. While you shouldn’t get one of these loans without a way to pay it off, not having to prove your income can make it easier to get the loan. 
  • Get your money quickly: Many lenders that offer a car or auto title loan can give you your money pretty quickly. If you need to make an unexpected payment or make an emergency expense, this can be a nice feature. As long as you come prepared with your car title, many of these lenders can get you your money in the same day. 

Cons

  • Expensive: Car title loans are relatively expensive compared to other loans. Since they are often reserved for borrowers with low credit scores, the interest rates on these loans tends to be very difficult. An interest rate may also come with other fees that can make the total expenses be fairly high. Since your car is at risk if you can’t pay off the loan, the cost of the loans makes it extra risky. 
  • Difficult to pay back: Along with the high costs of the loans, car title loans often have to be repaid relatively quickly. This makes them even harder to pay back. If you cannot get your car loan and turn around and pay the high expenses back relatively quickly, you will lose your car. The difficulty of these loans paired with the risk of losing your car makes these loans some of the most risky loans. 
  • Can lose your car: The main and obvious disadvantage of these loans is that you lose your car if you cannot pay the loan back. Chances are, you use your car to get to work and do about a million other things. Losing your car can be disastrous for you. As such, you are better off getting a loan with less risk that is easier to pay off, like a credit builder loan with Possible Finance. Credit builder loans with Possible Finance do not require a credit check and are paid back in four installments, which makes the loans much easier to pay off. Download the Possible app and get the money you need today. 

Michael Collins

Michael has a passion for writing and has since brought that passion to Possible. He enjoys reading everything there is to know about film, sports, and finance. His studies in college allow him to be on the forefront of business knowledge so he can better inform his readers.

Sign up for our newsletter