- 1). Contact the bank or lender you wish to use for the car title loan. Ask what their requirements, policies and procedures are for application.
- 2). Look at websites like Edmunds or other sources like dealerships that can provide you with a written dollar figure for the vehicle you're using based on its model, make and year. The lender may tell you the car is worth a very different amount -- usually less than the value -- so you'll need some documentation to prove the car really is sufficient to back the loan amount for which you'll ask.
- 3). Get personal financial statements and related documents in order -- most lenders don't use credit checks with car title loans, as the loan is secured, but they still typically want to verify who you are and whether you're employed at a job that provides income sufficient to repay the loan. Information you'll need includes your monthly income, such as shown on paystubs, your Social Security number, personal identification, such as a photo ID and current address. You'll also need the car title.
- 4). Make a copy of all documents. You'll need two copies of the car title.
- 5). Make an appointment with the lender to apply for a car title loan.
- 6). Go to your appointment with the copies of all your documents -- keep one copy of the title for your personal records, as you want to have the title information in case the original is lost and you have to ask the DMV for a new one. Fill out the loan application and give the copies of your documents to the lender.
- 7). Go back to the lender once you receive notification your loan application has been approved. Give the lender the original title and complete any paperwork necessary to finalize the loan. With some lenders, the loan approval process takes less than an hour, so you might be able to combine this step with Step 6 and visit the lender only once.
- 8). Contact your local Department of Motor Vehicles or similar agency for your state and make sure they know about the car title loan. Normally, car title loan lenders do this for you once you sign the loan paperwork, but double-check that everything is in order so you can be sure of who has legal claim to the vehicle.
- 9). Get in touch with your insurance company and add the lender to your policy. The lender will want you to do this because they have a financial interest in the vehicle and want to ensure their investment is protected should you get in an accident.
- 10
Make payments on the loan as stipulated in the loan agreement. - 11
Contact the DMV and check that the lien has been removed from your vehicle once you repay the debt. Also contact your insurance company and remove the lender as an added insured.
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