There are many lending options available in Kentucky—one option being car title loans. Car title loans are often sought out for their speed, flexible eligibility requirements, and ease. They work by using the borrower’s vehicle title as collateral against the loan. When inquiring for a title loan in Kentucky, just like other kinds of lending, there are going to be a few documents required.
Here is more information on the documents a person will need to get title loans in Columbus or in Kentucky, along with details of a unique kind of title loan available for Kentucky residents—title loans serviced by LoanMart1!
What Are the General Documents a Car Title Loan Lender Will Ask For?
Here is a list of the documents that most title loan lenders in Kentucky will ask to see:
- A photo ID (driver’s license, state ID, or passport)
- The vehicle’s title
- Proof of income (pay stubs or bank statements)
- Proof of residence (mail or lease/mortgage information)
- Some type of car inspection
- Other documents may be requested for clarification of information
Most lenders will have a general inquiry process for their title loans, which will require these documents at some point—so it is best to have them handy.
Why Do Car Title Loan Lenders Need All These Documents in Kentucky?
It isn’t too surprising that car title loan lenders will likely need these documents, since money is involved.
Here are some details as to how lenders use these documents:
1. Verification of the Applicant’s Identity
Knowing the identity of the applicant is extremely important for a title loan lender. Car title loan lenders have to make sure that you are who you say you are. By verifying your identity, lenders may be able to qualify you for a loan and you can receive emergency funding.
2. Verification of Vehicle Ownership
Another important factor that lenders must verify is the vehicle’s ownership. The sole owner of the vehicle must be the applicant. Verification of ownership allows a lender to legally place a lien on the vehicle for the duration of the loan. You must legally own the vehicle to use it as collateral for funding.
3. Verification of An Applicant’s Ability to Repay the Loan
When trying to figure out the title loan amount and monthly repayment terms, a lender will have to get an accurate picture of what the borrower’s finances look like. This will help them figure out how much funding the borrower could comfortably repay, along with how much the monthly loan payment should be.
Looking through all these reasons as to why title loan lenders need documentation, it becomes apparent that lenders wish to protect themselves from legal trouble. They have to be extra diligent about this, because title loans are already considered high-risk for the lender.
Will There Be a Credit Check Involved with a Title Loan?
With title loans, a credit check may be necessary. However, most loans only require a soft inquiry to apply. This means that an individual’s credit usually will not be affected. But once a loan agreement is made, a hard inquiry typically must be made.
Why Choose a Title Loan Serviced by LoanMart for Funding in Kentucky?
A title loan serviced by LoanMart is a unique type of car title loan. It offers flexible, easy, fast funding that many people expect with title loans1.
However, title loans serviced by LoanMart come with a few additional perks:
Competitive Interest Rates
Title loans serviced by LoanMart offer highly competitive interest rates, especially when compared to other similar funding types.
With a title loan serviced by LoanMart, a borrower can get years to pay back their loan. Along with that, the loan can be repaid early without fees or penalties.
Transparency Throughout the Process
There are no hidden fees or bulk payments at the end of the loan to worry about. A borrower will know exactly what they are signing up for before they sign their loan documents.
Title Loans Serviced by LoanMart in Kentucky
To approve you for funding, title loans serviced by LoanMart need certain documents to verify your identity, your car details, and your income1. Getting started with a title loan serviced by LoanMart in Kentucky is simple, as an inquiry process can be started online1!