Title Loan Requirements

March 16, 2017
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When we say title loans, an individual without too much experience in the field might immediately connect the term to cars. That’s perfectly ok since car title loans are the most common type of title loans after all. Just be aware that pretty much any title is good as collateral in title loans. These loans are also called “title pawns” in some states, which does a much better job at explaining the service in question. So, title loans can be secured by your house, apartment, land, valuables, various vehicles, and so on.  

Having cleared that out, title loans do have requirements, just as any other type of funding for profit. The companies offering them have somewhat more lenient demands than other borrowing institutions, but there’s still a procedure to go through and we’ll prepare you for all of it.  

Title Loan Requirements


One of the most painful aspects of loans is struggling to collect all the paperwork. Be that as it may, here are all the documents required for application: 

  • Identification documents  You’ll have to provide a valid driver’s license and your social security number so that the title loan company of your choice can verify your identity. If you own a car title but are not licensed to drive, the companies will accept your state-issued ID card, passport or military identification. 
  • Residency documents  Some countries do not allow title loans, so you’ll have to prove that your state laws allow them. These documents will also help verify your identity. Residency documents include a house deed, a statement from your landlord or a lease. You’ll also have to provide a recent phone or utility bill.
  • Financial documents  In addition to having collateral for the title loan in question, you’ll still have to prove that you can make the monthly payments in time. Wage earners will have to provide 1-4 weeks’ worth of pay stubs and self-employed borrowers will be required to provide 1-3 years of business financial documents, tax records, and bank statements. Retired borrowers provide SSA, pension or retirement account statements. 
  • Vehicle documents  You’ll have to prove that you’re the rightful owner of the vehicle and that it’s currently lien-free. Moreover, the companies will require proof of insurance. If your car was released from a previous lien, you’ll also have to provide the release paperwork. 
  • Reference information  Most companies will demand at least two references, but this number can go up to five. References are testimonials of your general character and the ability to handle monthly payments. The companies usually won’t contact your references unless you default and they can’t find you. 

Other Requirements

Title loans also include a list of non-bureaucratic demands: 

  • You have to be at least 18 years of age; 
  • Some companies will allow you to keep driving the vehicle, some will take it until the lien is released;
  • Some lenders will ask you for the copy of the keys and your personal ID; 
  • There’s even a possibility of installing a GPS chip in order to be able to track the vehicle at all times; 
  • Furthermore, some of these devices will have an option of disabling the car remotely.

One of the best news a borrower with some bad decisions in the past can hear is the fact that title loans do not care about your credit rating. As long as you can make the monthly payments and the resale value of your vehicle is high enough, you have nothing to worry about.