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How to get a title loan with no proof of income
It's possible get a title loan without money coming in — but is it your best option?
Like other types of short-term loans, how auto title loans work varies by state. Some might require you to show you have a job or receive benefits, while others might allow lenders to not consider your income at all. But taking out a title loan without income is risky — it’s expensive and you could lose your car.
Can I get a title loan with no income?
Maybe, depending on where you live and who you borrow from. Some states require title loan providers to verify that you have enough money coming in to pay off your loan. Others might not require proof of income, but limit how much you can borrow to a percentage of your income.
Even if your state doesn’t require lenders to ask for proof of income, many reputable lenders still do. Make sure you can qualify before you apply.
How to get a title loan with no income in 4 steps
When you’ve considered the alternatives and decided a title loan is the best option for you — even without verifiable income — follow these steps to find financing:
Step 1: Consider all possible sources of income
Unemployed? Don’t have a verifiable salary? You still might have income. Title lenders often consider any regular money coming in as income, including:
- Pensions
- Social Security
- Alimony
- Child support
- Disability benefits
- Unemployment benefits
- Other welfare benefits
As long as you receive money each month and have the receipts to prove it, you have income.
Step 2: Check your state’s laws
If you don’t have any verifiable income, make sure it’s legal for title lenders to offer you a loan without verifying your income.
If it’s illegal, title loans aren’t an option for you right now — working with an illegitimate lender can expose you to predatory practices and typically make it difficult for you to take legal action if something goes wrong.
Step 3: Compare lenders
Look for lenders that don’t require employment or income before comparing APRs and loan terms. If it’s unclear whether or not you can qualify, reach out to customer service.
Before applying, check to make sure your lender is licensed to lend in your state if it’s required.
Step 4: Apply for the loan
While you can often get started on your title loan application online, most lenders require you to drive your vehicle to a storefront to have it inspected and sign your loan documents. Once you get to your local branch, you can typically get your money in around 30 minutes.
Compare auto title loans
Check that you meet the minimum requirements of the lender before applying.
Updated September 20th, 2019
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3 risks to consider before you apply
Applying for a title loan when you don’t have proof of income can be risky for a few reasons:
- Sky-high rates. Lenders that have few or no requirements tend to offer higher rates and fees than lenders that are more difficult to qualify with.
- Could lose your car. If you can’t pay back your loan within a certain amount of time, your lender has the right to repossess your car.
- Cycle of debt. A Consumer Financial Protection Bureau (CFPB) study found that only one in eight single-payment title loan borrowers were able to pay back their loan without reborrowing. If you can’t, interest and fees will quickly add up — making your loan even more difficult to pay back.
4 alternatives to title loans if you have no income
Don’t have money coming in? Consider these alternatives first before taking out a title loan:
- Take on a side gig. There are some unexpected ways to make extra cash that take minimal time or effort — like selling your photos instead of posting them on Instagram.
- Consider credit counseling. Credit counseling agencies can help you get back on track by offering free one-on-one sessions and financial well-being workshops. You can find a government-approved agency near you on the Department of Justice’s website.
- Apply for a job. Some lenders are willing to work with borrowers that have a job offer or a contract showing that they’ll have a steady income in the near future.
- Consider local resources. If you’re struggling to cover basic expenses, your local government might have programs that can help out with these costs without taking on debt.
Bottom line
While you could get a title loan when you don’t have verifiable income, it’s not always the best idea. Before comparing lenders, make sure you’ve considered all possible sources of income — and the alternatives.
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