The answer to the question, “Can I get a title loan if I am unemployed?” is simply that it depends. You may be able to find a lender who is willing to accept unemployment insurance as proof of income.5 But, keep in mind that most lenders do not.
The first thing you have to do is get up the courage and ask during your loan inquiry. A title loan agent will be more than happy to answer all of your questions and walk you through the process.5
Let’s address this issue from another perspective… your ability to pay back the loan. We know the pressure is strong when you are sitting with a pressing financial problem. You are scrambling to find ANY solution that will work. But when applying for a title loan, you will typically need to provide proof of your ability to make loan payments. When getting a car title loan if you are unemployed, the answer is usually that it can be possible to verify your income without a traditional job. But you still need to have evidence of your ability to handle loan payments.
Whether you have unemployment insurance or another type of non traditional income, such as SSI, you may be able to present that during your loan inquiry if your title lender is willing to work with you. Call 855-561-5626 to learn more about applying for title loans while unemployed!5
Can I Get a Loan When I Don’t Have a Job?
When you’re in a real financial jam where you need a significant amount of funds in a hurry, you may turn to a car title loan. However, if you do not have a job, you might be wondering if any lender will accept you as a borrower. After all, they will want you to be able to show that you can pay back the money that you borrow from them. Through Max Cash® Title Loans, you may be able to connect to a loan despite not having a job. You must provide proof that you have an alternative source of income, however. Acceptable documents besides pay stubs typically include proof of Social Security Income, bank statements, benefits letters, or worker’s compensation award letters.5
How Much Can I Get Through a Title Loan if I’m Unemployed With No Job?
When it comes to getting a car title loan through Max Cash Title Loans, you can still qualify even if you do not have a traditional form of employment. The important thing is that you can show an acceptable document that proves you can pay the loan proceeds.5
Your eligibility for a title loan, along with your loan amount, will be primarily determined by your income and the value of your vehicle. If you qualify for a title loan while unemployed or without a traditional job, you can usually access up to 50% of your car’s value. Keep in mind that a lender will usually use your income to determine how much you can realistically afford to pay, however.1 5
Alternative Forms of Income
Just because you do not have a traditional job in a cubicle does not mean that you will not qualify for a car title loan from one of the many reputable lenders that we work with.5 Although this is not an all-inclusive list, many lenders will accept the following forms of alternative income:
Annuity Payments
Something that people often do is invest funds into an annuity, which is a lump sum of money that becomes a form of steady income for a set amount of time. Usually, folks who invest in annuities use them as a means to fund their retirement. However, the funds can also be used for other purposes as well.
Worker’s Compensation
In jobs that are based on manual labor, it is fairly common for an employee to receive injury while on the job. When such an injury does occur, they may receive worker’s compensation from their employer paid to them in order to keep their finances out of the red while they get better. Because this is a wage provided by your employer, it is considered a valid method of showing that they have a steady source of income coming to them.
Settlement/Court-ordered Award
During a lawsuit, an individual may rather avoid going through a drawn-out court hearing. In a settlement, the parties agree to resolve the matter outside of the court room, which typically involves the defendant paying a sum of money or providing some other form of compensation to the plaintiff. The settlement may be paid in monthly increments over time.
If you do not manage to reach a settlement however, the court will order the defendant you are suing pay an award to you. This often happens after you have managed to prove they did what you are suing them for. The funds awarded to you can sometimes be divided into scheduled payments – like it is a source of regular income. Showing proof of these payments also counts when it comes to approval for a car title loan.5
Social Security Benefits
Sooner or later, it is time for you to retire. For most folks, Social Security and retirement benefits from the state along with any pension/401k plans they put funds into will kick in during retirement. some title lenders will accept proof of these sources of income during your loan inquiry.5
How Can I Show Proof of Income for a Car Title Loan with No Job?
While many people do believe that showing a recent pay stub is the only way to show proof of income, it’s not the only way. There are actually a number of different things you can use to prove that you can pay your loan back. For example:
- Worker’s Compensation Award Letter
- Social Security Statements
- Disability Award Letter
- Settlement Statements
- Alimony Agreement Letter
- Child Support Agreement Letter
What Do I Need to Get a Car Title Loan While Unemployed?
In addition to proof of income, there are a number of other documents you’ll need to get ahold of before submitting your car title loan paperwork:
- Qualifying Car Title in your name
- Photos of your car (front, back, and sides)
- Government-Issued I.D. (Driver’s License, State I.D., Passport, etc.)
- Proof of Residence (Official pieces of mail)
It’s important to be aware, some car title loan companies don’t accept photos of your car. Instead, they require that borrowers bring their car down to their brick and mortar location to be examined for any major damage, etc. You may be required to present other paperwork as well depending on the lender you work with.
How Does the Lender Decide How Much I Can Borrow With a Car Title Loan?
There are three major things that impact the amount of money you can borrow through a car title loan:1
- Value of your car
- Length of the loan
- Your monthly income
The total market value of your car is determined by assessing things like the mileage, the make and model, the interior and exterior, the age, etc. Lenders use the value of your car to determine the maximum amount of money that they can potentially lend you. The length of your loan determines the size of your monthly payments. And finally, lenders use your monthly income to determine the maximum amount of money you can afford to pay back each month. It’s important to note that some states restrict loan durations. Because this may limit the size of the monthly payment, it can impact loan affordability.1
Are There Hidden Fees Associated With No Job Car Title Loans?
Reputable car title loan lenders don’t put hidden fees in their car title loan agreements.4 This means they shouldn’t include things like prepayment penalties, which punish you for trying to pay your loan back early.3 4 Nor will they subject you to balloon payments, enormous payments at the end of the life of the loan. It’s essential that you read your loan agreement and ask the lender about any points you are unclear on.4
What Will Happen if I Fail to Pay my Title Loan Back?
It’s vital that you contact your lender if you are struggling to pay your loan back. Borrowers who default on their loan run the risk of having their car repossessed. The specifics of how this occurs vary from state to state. But, there are a few basic steps that are consistent. Once a borrower misses sufficient payments to be in default, the lender may send them a right to cure notice, if one is required by law. This informs the borrower that they have a grace period during which they can repay the entire balance of the loan. Once any grace period has expired without an attempt of repayment, the lender may repossess the car.
Once a car has been repossessed by a lender, it normally is auctioned off. Any proceeds are put against the balance of the loan. In some states, after the auction the borrower and lender part ways. That’s not the case in every state however. Some allow lenders to continue to pursue borrowers if the proceeds from the auction don’t cover the balance of the loan.
Can I Obtain a Car Title Loan if I Have Bad Credit? What About No Credit?
Traditional lenders often deny people loans based on their credit scores. Even if they have reliable income! Car title loan lenders don’t turn their noses up at borrowers just because they may have a few hiccups in their credit history. As mentioned previously, car title loan lenders are much more concerned with your ability to pay your loan back and the value of your vehicle.5
Don’t let the fact that you don’t have a job keep you from trying to obtain a loan. A car title loan lender may be able to provide you with the emergency money you need to cover unexpected expenses. Upon final approval, you can potentially receive funds in as little as one business day.5
If you’ve got a qualifying car title in your name, don’t hesitate to reach out to Max Cash Title Loans! We may be able to find the perfect lender to potentially resolve your financial problem! Have more questions? Check out the Max Cash Title Loans FAQ page and see if there’s an answer there!
Can I Obtain a Personal Loan when Unemployed?
When you want to get a loan, most lenders you may consider approaching regardless of the type of loan you want to take out will require you to have some form of stable employment. If you are currently unemployed, you may be out of luck with many kinds of lenders. However, do not fret and think that because you are unemployed, all hope is lost.
Even if you are not presently employed, there are still lenders out there who could still provide you with the emergency funds you need to get through a financial difficulty.5
When applying for a loan, it helps if you have some other form of steady income, such as:
- Court awarded payment/settlement
- Annuity Payments
- Worker’s Compensation
- Social Security benefits
What Kinds of Personal Loans Can I Get if I am Unemployed?
Because you are without any form of steady, regular income, your personal loan options are fairly narrowed. You will more than likely not qualify for an unsecured loan (which are loans that do not require collateral). However, a secured loan like a title loan can be much more flexible than a personal loan. This is because collateral is required to secure the loan. This reduces the risk to lend to someone with bad credit. By providing collateral, the lender would know that even in the event of default, they would still be able to make back the money that they lost. If you want to find a title loan while unemployed or with no job, you’ve come to the right place. Call Max Cash Title Loans at 855-561-5626 today to learn more!5