Title Loan While on Benefits: A Comprehensive Guide for Borrowers

Auto title loans are known to be designed for high approval rates and flexible qualification criteria. With that said, reputable title loan companies usually require that borrowers provide some form of proof of income so that they can confirm the borrowers’ ability to afford a loan. If you are currently receiving income through benefits, you may wonder if you can obtain a title loan while on benefits.

The short answer is Yes! It is possible to get a title loan while receiving benefit income.

Keep reading to find out how you can qualify to borrow against your vehicle while receiving entitlement income.

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Eligibility Criteria for Title Loans While on Benefits

In order to qualify for a loan against your car, truck or SUV, you need to meet the lender’s credit criteria.¹ Besides having sufficient income to afford title loan payments – whether through benefits or other income – eligible applicants need to own a vehicle with sufficient equity, and meet some basic credit criteria which can vary from one loan provider to the next.¹ While title-secured loans usually don’t require a perfect credit score and are available to applicants with bad credit, the basic credit requirements usually include not currently having an active bankruptcy case.

Of course, applicants also need to reside in a state that’s serviced by the respective loan company, and be willing to provide all required documents to finalize the loan.

What Benefits or Entitlements Are Accepted When Applying for a Title Loan?

Many title lenders will accept all types of benefits as income, as long as the applicant can provide documents that allow the lender to verify the income and confirm that the income is expected to be ongoing.¹ While the exact list of acceptable benefits may vary from one loan provider to the next, vehicle title loans serviced by LoanMart may be accessible with the following types of benefit income:¹

• Retirement benefits: receiving Social Security or other types of pension and retirement income can be accepted
• Disability benefits: government disability support can be accepted to show an applicant’s ability to afford monthly title loan payments
• Unemployment benefits: applicants who receive unemployment compensation that is expected to be ongoing may be eligible
• Worker’s compensation: if you are unfortunately injured on the job or have acquired an occupational disease while at work, you may currently receive worker’s compensation. If the worker’s compensation is verifiable and expected to be ongoing, that can count as qualifying income for a vehicle title loan
• Other benefits: If you receive other types of entitlement income from the government, you can qualify as long as your income can be verified and is expected to be ongoing

Does Being on Benefits Affect my Title Loan?

No! With title loans serviced by LoanMart, your title loan application can be reviewed just like any other application – whether you receive government benefits or not. The only difference between an applicant with benefit income compared to an applicant with income from employment or self-employment is that different types of documents would be used to verify the applicant’s income. While applicants who are traditionally employed may provide a picture of their paystub, applicants with benefit income will be asked to provide other legitimate proof of their income, such as benefit statements or recent bank statements showing the deposit of the entitlement payments.¹

If you have questions or concerns about what documents you can use to have your benefit income verified when your loan application is finalized, call us at 855-422-7412 to speak to a friendly loan officer!

What Documents Are Required to Finalize the Loan?

Before a title loan can be finalized, lenders usually required a set of documents to verify the applicant’s identity, income and vehicle ownership.¹ While the exact list of documents can vary by lender and also by applicant, you can expect to need the following to complete a title loan applications while receiving entitlement payments:

• Vehicle Title: the title must be in the name of the applicant, i.e. in the name of the benefit recipient
• Vehicle Pictures: online title loan providers usually accept recent vehicle pictures in lieu of a physical  vehicle inspection
• Proof of Income: for loan applicants with benefit income, this will usually be a benefit statement, benefit letter or recent bank statement showing the incoming entitlement funds
• Proof of Identity: a government-issued picture ID, usually a driver’s license, state ID or passport
• Proof of Address: recent mail, such as a phone bill, utility bill or bank statement

Alternatives to Auto Title Loans While on Benefits

As a recipient of benefit income, handling an unexpected expense can be difficult at times. After all, the government is not a traditional employer that you can approach about getting an advance on your paycheck, or about working overtime to increase your take-home pay. Besides taking out a loan against your vehicle, you can consider some other options to get some extra funds while on benefits. Some of them include:

• Selling household items you don’t need anymore: Unused household items of value can be quickly turned into cash using yard sales or online options like Ebay or Facebook Marketplace.
• Taking up some part-time work: If your personal circumstances allow it, you could take up a part-time job or gig work like driving for Uber, even while receiving benefits.
• Budgeting or reducing some of your expenses: If you’re facing a comparatively small shortfall in your budget, you may be able to handle it by reducing some non-critical expenses. This could include unused or under-used subscriptions. There are several apps that can even help you doing that, such as Rocket Money or Subscription Stopper.
• Other loan options: Title loan providers are not the only type of lenders that accept benefit income when evaluating an applicant’s ability to make loan payments. Depending on your credit history and financial background, you very well may qualify for other loan options such as credit union loans, traditional bank loans or peer-to-peer loans.

Apply Today for a Vehicle Title Loan While on Benefits

Car title loans and truck title loans serviced by LoanMart are available in more than 20 states, including smaller ones like Idaho and Delaware, and large states like Florida, Georgia, and Texas. To apply, simply fill out the online form, or call 855-422-7412 during regular business hours to speak directly with a loan officer.