Whether you need money to pay for medical emergencies, urgent home repairs, rent, or other immediate expenses, there are numerous unplanned scenarios that warrant the need for extra funds. However, not everyone is able to set aside money for such instances; this is why secured loans from us here at Car Title Loans California can be a better option for immediate financial needs.
Also called secure title loans, these types of loans are the best way to obtain the funds you need in less time compared to getting a cash loan from conventional lending institutions.
Banks and other lending companies have loan procedures that can take up to two days before an application is approved. However, this waiting time can be too long if you have an urgent situation that needs a quick solution.
At Car Title Loan California we want you to understand your car title loan before you enter into it. Below, we’ll tell you some title loan secrets that other lenders won’t tell you—like how to save hundreds of dollars on your car title loan.
What is a car title loan?
A car title loan is a secured loan based on the equity in your car done under the California Finance Lenders Law. This means that you will pledge your auto as collateral against which we will make the loan. Car Title loan California will be put on your vehicle’s title as a lien holder at the DMV.
A car title loan is an installment loan that is repaid via regular, monthly payments in our case. Your loan will not have prepayment penalties.
Are there other names for car title loans?
Yes. There are several other names for car title loans including:
- pink slip loans (because the informal name for a car’s title in California is a pink slip);
- auto title loans (because auto is short for automobile and another name for car);
- automobile title loans (just the longer name for auto);
- car equity loans (because the amount you can borrow is based on the equity you have in your vehicle);
- auto equity loans (the reason should be obvious by now);
- cash for car title loans (because you receive cash for putting the lender on the car’s title as a lien holder);
- title loans (just drops the car or auto in front because they are the most common type of title loan);
- auto collateral loans (because your automobile is put up as collateral for the loan); and
- title loans with bad credit (because a car title loan can be issued if you have bad credit because your car is the collateral for the loan).
What is equity?
Equity is simply the market value of your car minus what you owe on it. You will not have to give any personal information or contact information to qualify your car!
What is collateral?
Collateral is an asset (something of value to others) that you allow a lender to have a claim on, if you do not repay a loan. Your car is the collateral for a car title loan.
How does interest work on a car title loan?
For car title loans, the type of interest on your loan is known as “simple interest”. This means that interest is charged on the amount you owe on the loan (the “outstanding balance”) every day until the loan is repaid. Every loan payment is used first to pay any account charges due (such as late fees, bounced check charges, and others), then to pay interest due, and then, if any money is left, to pay down the outstanding balance.
If you make every loan payment exactly on time as shown in the payment schedule disclosed in your loan agreement, your payments will add up to the Total of Payments shown in the Truth-In-Lending Disclosure.
Here’s the big secret about making car title loan payments early: If you make a loan payment early, the interest portion due from that payment will be lower than normal because you are paying back that payment’s share of the outstanding balance sooner than normal (you save interest because it is calculated on a daily basis; so the fewer days you borrow the money, the less interest you owe). We use the rest of the normal interest part of the payment as an additional amount to pay down your outstanding balance along with the normal amount included in your payment. So, early payments pay back the outstanding balance faster than on-time payments. If you make early payments often enough, you will pay off your loan early and you will pay less in actual Finance Charge than shown in the Truth-In-Lending Disclosure, possibly saving hundreds of dollars.
If you make a loan payment late, the interest you owe increases every day your payment is late. This means that a late payment will not include enough money to cover both the interest and that payment’s part of the outstanding balance due. Because interest is taken out of each payment before the outstanding balance is paid, a late payment will not have enough money in it to pay down the normal amount of the outstanding balance. In some cases, your late payment may not pay down any of the outstanding balance and the interest you owe may be more than your total payment. As a result of late payments, you may end up paying more than the Finance Charge shown in the Truth-In-Lending Disclosure. This means that the loan will end up costing you more than originally planned.
If you ask us, we will calculate the daily interest due in dollars per day on your outstanding balance. This will let you know exactly how much you will save by paying early or how much you are losing by paying late. This daily interest charge in dollars changes depending on your outstanding balance.
How do you calculate my loan payments?
We calculate your loan payments so that you will repay your loan in substantially equal payments over the term of the loan. This means that, if you make your loan payments on time, you will not face a “balloon payment” (a single larger payment that would pay off your loan outstanding balance, interest, and other charges) due at the end of your loan.
Annual Percentage Rate
The Annual Percentage Rate (APR) is a calculated rate and not the interest rate of your loan (it is the loan’s interest rate that determines the amount of interest you pay on the loan). In addition to interest, the APR takes into account certain Prepaid Finance Charges, such as an Administration Fee, and the Amount Financed. The APR is calculated by spreading the Prepaid Finance Charges over the life of the loan; this results in an APR that is higher than the interest rate shown in your loan agreement.
Prepaid Finance Charges
Prepaid Finance Charges are defined by the Federal Reserve Board, must be paid by the time the loan ends, and are calculated into the APR. These charges include the Administration Fee for your loan. Prepaid Finance Charges are found in the Itemization of the Amount Financed box in your loan agreement.
The Finance Charge includes the total amount of interest that you would pay if all payments are made on-time for the full loan term and the Prepaid Finance Charges.
The Amount Financed is the amount of money given to you plus the Department of Motor Vehicle fees and any money paid to others on your behalf (such as paying off an existing loan on your car). The Federal Reserve Board requires that Prepaid Finance Charges are not included in the Amount Financed. The Amount Financed is the loan amount used in the calculation of the APR.
Total of Payments
The Total of Payments is the total amount of principal and Finance Charges that you would pay if all payments were made on-time for the full loan term. It is the number of payments multiplied by the payment amount.
The Payment Schedule shows the number of monthly payments due over the life of the loan, the amount due for each payment, and the date the first payment is due.We understand you have financial problems, and hundreds of other problems, arise in every person’s life at one point or another. Don’t just depend on your loved ones to help you, consult with a professional lending institution that will provide you with an alternative to an unsecured loan from a bank or high interest online lender. Should these situations ever arise in your life, and we are certain that they will, remember that you have a self-sufficient method to helping yourself and using your car as collateral for a low-interest, hassle-free, customized loan. Feel free to search online for some of our reviews, and see for yourself, firsthand why we are the best when it comes to obtaining an online car title loan.Our high customer retention rate tells us that we are doing right by our clients each and every day and we are constantly consulting amongst each other even more ways to further benefit your experience here at Car Title Loans California.If you’re searching for peace of mind and a quick way to obtain the funding that you need to achieve goals of consolidating debt to a lower interest, buying yourself something nice, or even looking to start a small micro business where you need the initial funds to get up and running. We started this business with the simple purpose; to provide high-quality, customized, low interest loans that will benefit both parties, not just the lender. If you have a clear car title, a valid form of identification, and the will to successfully acquire funds, for whatever reason that may be, then you have come to the right place. We take a lot of pride in calling ourselves the most honorable title loan lender across the United States and we have been in business for decades. We have seen other lenders fail where we have initially succeeded which tells us that our proven methods continue to work even in today’s ever-changing economy.
Quit letting debt ruin your life! Debt is the number one reason marriages do not succeed, relationships fail, and business partnerships suffer as well. When someone has debt attached to their name that they’re unable to control such as variable interest loans, it becomes a burden on everyone around them. Do not let out of control interest loans that you have taken out in the past affect you anymore. Consolidate all of those small credit cards, put some cash in your pocket, and get back on track with the things that are really important.
The best thing about Title Loans California is that we don’t demand you come to us with perfect credit. We are able to accommodate most of everyone that walks through our door or fills out a convenient online application through our website.
Why choose us? Because we are…
- The highest rated professional online lender in the United States
- We offer the lowest interest in our industry
- We do not require a perfect credit
- We accept more make and models than any other lender, online or in-store
- We customize your loan so that you are able to manage it
- We practice the safest lending methods in the industrySo, why are you still waiting for? Stop wallowing in poverty while you can get the cash that can solve your financial troubles using your car. Get in touch with our Car title loan customer service line and get the cash you need today.