Despite our best efforts to budget wisely, save smartly and spend consciously, most of us will experience at least one period of time in our lives where money is a little difficult to come by. Maybe it’s the ebb and flow of the economy. Maybe it comes at a time of unemployment. Maybe there is an unforeseen circumstance that puts our bottom line a little behind where we’d like it to be. Regardless of the situation, the good news is that there are myriad ways out of this predicament and many avenues to travel down when you need cash as quickly as possible.

One such route is an auto title loan, also known as a car loan or auto equity loan. With this type of lending arrangement, you will essentially put your vehicle up as collateral on a loan. In return, your lender will analyze the amount of equity you have built into the car to determine the loan amount that you are eligible to receive.

While the deal sounds similar to one you would sign for at a pawn shop, where your personal goods are also used as collateral, the difference between an auto title loan and a pawn shop loan is that you don’t have to leave your vehicle with the lender in the interim while you’re using the money. Rather, you can continue driving your car in the meantime. The catch? If you default on any of your payments, your lender could seize your vehicle, selling it to get those lost funds back.

If this sounds like an arrangement you’re interested in, there are several steps you’ll need to complete before walking away with your new loan. It’s important to gather the needed information before you walk into a lender’s office so you are as prepared as possible. To that end, here are a few important papers you’ll need to bring along.

1. Your Identification Documentation

This is an important step in any lending process, but arguably even more so when you’re applying for an auto title loan. Why? The lender will need to verify that you are indeed the owner of the vehicle in question. You’ll need to bring along your driver’s license, along with your social security number to confirm that you are who you say you are.

What if you legally own a vehicle but are unable to drive it? In that case, you can still receive an auto title loan. You’ll just need to supply the lender with your state-issued identification card. You can also use a military ID or even a passport to fulfill this requirement.

2. Proof of Residency

While most cities and states will allow auto title loans, some do not and it’s important to ensure that you live in a locale where they are permitted. To prove your residency, you’ll need to bring your lender some form of bill sent to your home that includes your name on it. This is usually a utility bill or a phone bill. You should also bring with you a copy of your property deed if you own your home. If you rent, a signed statement from your landlord is usually sufficient.

3. Evidence of Financial Responsibility

Ultimately, a loan is intended to be a temporary break-fix that helps to fill short-term gaps in income. Your lender will still want evidence that you are financially responsible despite the setback that is catalyzing the loan request. This helps to assure the lender that you will be able to pay back the loaned money on time and in full. To this end, you should come equipped with bank statements and at least a month’s worth of pay stubs. If you are self-employed, bring along the last two years’ tax returns as well as other related business documents.

In the event that you are currently unemployed, you are still eligible for a car title loan. In lieu of income or tax documentation, you will need to bring an official letter from the local Department of Social Services or Social Security office. Retired applicants can show statements from their pensions, IRA retirement accounts or Social Security accounts.

4. Proof of Vehicle Ownership

Again, you will need to provide evidence that you are the owner of the automobile you plan to put up as collateral. You will need to show the vehicle title and registration and show that there are no current liens against it. In addition, bring along proof of auto insurance so the lending agency can verify that the car is covered for the duration of the loan terms. This is important, as a lost or stolen car is less valuable than the one that was put up as collateral in the beginning and as such, these events significantly change and in many cases negate the terms of the loan.

5. Personal References

Although these are not required by every lender, it never hurts to have around two to three letters of recommendation from personal or professional references. While some lenders will contact these persons ahead of approving you for a loan, most will keep these documents and only access or use them if needed. For instance, if you enter into a loan agreement, accept payment and then disappear without paying the loan back, your lender may use your contacts to reach you and determine a path forward.

Applying for an Automobile Title Loan with Confidence

As you move forward in your journey toward financial freedom, working hand-in-hand with lenders can be a great way to get back on your financial feet, reclaim some independence and pursue a more steady means of income. Yet, as with any financial agreement, it’s important to understand the terms clearly before signing on the dotted line. Before you walk away with your car keys and more money in your pocket, take the time to ask your lender plenty of questions and ensure you’re clear on what you’re expected to do. Having the right paperwork in place is a great first step and one that will put you that much closer to driving away in a new, brighter direction.