Car Title Loans (What You Need to Know)
If you are often facing financial burdens, or you find yourself in situations where you need to access quick money that can save you from financial embarrassments, getting a title loan will be a wise decision. Whether you are new to the concept of title loans, or you have heard about car/vehicle title loans already and wanted to get the details about it, this guide will be very helpful.
You may have gotten to that point where there is no other option; be it getting a loan to start a business, seeing yourself through school or settling some other personal issues, then, a car title loan is the answer.
There are several types of loan systems. They include; open-ended loans, closed-ended loans, secured loans and unsecured loans. A secured loan involves giving up an asset as collateral. Much like if you take any mortgage, collateral secures the mortgage. The lender might also take ownership of the collateral in a case where the borrower defaults.
A car title loan is an example of a secured loan where you get a loan by offering the title to your car or vehicle to the lender or the car title loan company as collateral. By getting this loan, you are permitting the loan company to place a lien on your car or vehicle. This makes your lender the “lien holder” That is, temporary surrendering the document showing ownership of your car to a title loan company in exchange for a specific loan amount.
You retrieve the car title and regain ownership of your car when you repay the borrowed loan amount in full. In other words, the loan agency removes the lien on your car or vehicle when you repay the loan, and the title returns to you. It is important to note that auto title loans are not limited to cars only. In fact, you can also use the titles of your other vehicles such as SUVs, motorcycles, trucks, and vans as collateral.
Online title loans are quick to obtain and easily accessible. The primary criterion is if you have a car that will qualify you for your requested loan with the title loan company. Online title loans are your means of rescue in times of critical needs that grants you access to funds based on your available asset – your car or vehicle. You can use your pink slip to apply for a loan, and you will be able to get the funds the same day that apply.
What about Banks?
Getting a loan from conventional lenders like banks and credit unions can be a very stressful and tedious adventure. If you approach a credit union or bank for a personal loan, they will take you through a rigorous paperwork and at one point; they will tell you that you are not entitled to the loan.
There are several reasons why this is the case;
- The traditional banks and credit union are credit-based lenders. Unfortunately, your credit score may be the major determinant for you to qualify for a loan.
- For a bank or credit union to give you a loan that is unsecured, your credit has to be perfect. You’ll meet with the bank representative or loan officer to discuss your financial needs, then you will know whether you are a good candidate for the loan.
- The traditional banks do not do asset-based lending unless they are financing your house. Then, they consider your house as the asset.
- Their policies are strict, and their conditions are stringent. For example, to obtain a loan from a conventional lender, your credit records must be perfect. Most times, this is a high standard to meet.
It is a different story altogether with online title loans. Car title loans were set up to solve this stress of accessing loans from banks and credit unions. Car title loans are a way to get a short-term loan quickly. On like getting a loan from conventional lenders like banks or credit unions, a car title loan is a simple, quick and stress-free way of getting money for any life occurrence, need or emergency.
What exactly is a Car Title Loan?
A car title loan (which is also referred to as “title loan,” “pink slip loan,” “auto title loan” or “vehicle title loan”) is a short-term loan where the borrower offers his or her car title as collateral. It is a form of a secured loan. But, on like the conventional secured loans, you do not give up your car. On the contrary, you still keep possession of your car as long as you do not fail to keep up with the agreed terms.
What this means is that you temporary give up the ownership of the car (that is your car or vehicle title) to the title loan firm until you fully pay back the loan. The process is mild and involves fewer rigors to acquire compared to traditional lenders like banks and credit unions.
The value of the car determines the amount of loan to be given to you and your capability to pay back the loan at the stipulated time as contained in the agreement during the time of securing the loan. However, you must own the car outright, or there must be enough equity on the car for you to be entitled to get a car title loan.
One of the possessions owned by most people today is a car. It is interesting to know that your vehicle or car can rescue you at the time of critical financial needs or when you are running out of cash. Car title loans are typically short-term loans and are the ideal solution for people with bad or no credit worth. Car title loans with Car Title Loans California start at $2,500 and up based on the vehicle value and the income of the individual.
History of Car Title Loans
Studies by the Center for Responsible Lending and Consumer Federation of America show that a new market opened up in the financial world in the early 1990s. That new market was called Title Loans. Title loans are a form of unsecured loans. And an example of an unsecured loan is the Payday Loan. Individuals with poor credits, as well as individuals who may not have easy access to borrowing money when in desperate need began to enjoy the brand new opportunity.
The trend grew rapidly since individuals or borrowers could use their car titles to secure loans, gaining access to cash they can use to settle pressing needs and emergencies. Due to the high-interest rates imposed by lenders on borrowers, as well as some other unforeseen circumstances, borrowers faced the risk of losing their cars or vehicles when they default on their payments.
As lending and borrowing activities continued to increase throughout the 1990s and into the early 2000s, the market for individuals with poor credit ratings dropped drastically. The drop gave rise to an alternative form of loan systems of which the car title loan became the remedy to this need.
This development allowed individuals with bad credit but who own a car or vehicle to have a way of accessing cash whenever they need it. Car title loans are now available both in physical offices and online services. In recent times, online title loans are one of the ways you can get fast access to cash when you are in need of financial help or when you have a financial emergency. Car title loans are easy to get and are always within your reach if you have a car that will qualify you.
Though some states continue to vote on legislation allowing or disallowing title loans, about 20 states allow title loans in one form or another. These states are California, Alabama, Arizona, Ohio, Delaware, Georgia, South Carolina, Idaho, Illinois, Kansas, Louisiana, Mississippi, Missouri, Nevada, New Mexico, South Dakota, Tennessee, Texas, Utah, Virginia, and Wisconsin.
How Does Car Title Loans Work?
It is very simple. You would approach a car title loan company with your car and title and apply for a loan. Although these applications available online, the company would still need to inspect your car; check the year, make, model and condition of the car. This information will enable the loan firm to determine the loan amount you are entitled to and also to determine what the resale value of the car might be.
In general, the lender assesses your car and lets you borrow a percentage of the value. No background checks on credit or employment are done. In fact, you do not need excellent credit to get a car title loan. Most title loan lenders will not check your credit at all. Also, you do not need to be employed to be qualified for a car title loan. We will check your credit, but the loan will be based on your asset.
The title loan agency will only ask to hold onto the title until you pay back the loan. You might qualify for a loan up to 85 perfect of the total wholesale value of the car. Then the agency will document the title to the vehicle, place a lien on it, and hand over the money to you. The loan repayment plan is based on the set loan limit. You pay back the loan plus interests within the period agreed, and then reclaim your title, lien-free.
Car Title Loans California offers you the opportunity to go through this entire loan process online. In many cases, a car title loan can be processed in as little as an hour, but with car title loans California, you get done with the process within a few minutes. Processing an auto title loan takes much less time than a traditional loan from a bank because of the lack of credit checks and other paperwork.
How Do I Qualify for a Car Title Loan?
Once you own a car outright or you have enough equity on your car, you are already halfway through the entire process. Car title loans California will find out how much your car your car is worth and how much it will qualify you to access with us, then we carry out the rest of the approval process. You can use your pink slip to get a loan. And with car title loans California, you will be able to get your the funds the same day that you apply, within minutes.
Here’s how Car Title Loans California works;
- We will need you to complete a full application. This can be done online or over the phone, depending on which method is most convenient for you
- We will do a credit check with Experian. Do not worry if you have bad credit. We work with bad credit all of the time. This is what makes us stand out.
- We will need to see your proof of income. As we are not concerned about your credit, we do need to know that you will be able to keep up with the title loan payments. Your bank statements or your pay stubs will satisfy this requirement.
- Your proof of your residence is required. A utility bill in your name going to your home address will work. If you do not have that, we will need some mail going to your home address in your name.
- We will need to see photos of the car. We will need to see the front, back, and side of the car. We will need to see the overall condition of the car before we set up your appointment.
- We will also need a photo of the odometer, so we can verify the miles on the vehicle.
- We will need to have 5 personal references. We will need the full names, address and phone numbers of all five people.
- We need to contact your insurance company. We will add our names to the policy as the loss payee. If you do not have insurance, you can get a quote, and we can pay it from the title loan proceeds.
If you are in search of better ways to get fast loans which you can use to solve urgent and pressing needs, car title loans California is your one-stop option. At car title loans California, we look out for your convenience. The process with us is straightforward and stress-free; fill our online application form to find out the cars worth and then we can see how much money we can give you.
In general, car title loans California assesses your car and lets you borrow a percentage of the value. We do not carry out any background checks on your credit or employment status. In fact, you do not need excellent credit to get a car title loan with us. We will check your credit, and you do not need to be employed to be qualified for a car title loan with us, but you will need to have proof of income. And if your question is “do I get to keep my car?” the answer is YES! You keep your car while repaying the loan.
The Inspection Process
Since your car title is the collateral for the loan, an inspection is a sure way of ensuring that you receive the maximum amount from a car title loan. A car or vehicle inspection may eventually reveal a higher value, hence, qualifying you for more cash. No doubts this extra cash might help to provide what you need to get through that financial dilemma.
When you approach a financial institution, lender or title loan company for a car title loan, inspections are commonly required to ensure and establish some facts about the car. Some of the facts to establish during inspection activities are the roadworthiness of the car, the proof of ownership of the vehicle, and if you have active insurance policy titled in your name. A lot of other factors determine if your car will likely be worth more or less. For example, if you have some aftermarket additions to the car, then the car will be valued more and could qualify for more money.
The inspection exercise will check if there are any visible dents on the car, such as; scratches, broken glass, scraps, broken lights, and much more. Also, the inspection will check to discover if any bodywork has been carried out on the car. Lenders also carry out physical inspections on cars or vehicles to ascertain if the cars have once been involved in accidents or if it has been modified in any way. And if yes, are those modifications according to the code and specs? All these details count during the inspection process.
The Problem with Skipping Physical Vehicle Inspection Process
Setting up a date for your car or vehicle inspection may seem like such a huge inconvenience task, but you cannot neglect its importance. A vehicle inspection is how you maximize the loan amount you could receive. You may apply for a small loan amount, thinking your car or vehicle is not worth much, yet, the inspection process may reveal a higher value, hence, qualifying you for more cash.
It is normal for many folks out there to prefer to skip this process not because they don’t have the car but due to many other reasons such as:
- Their tight schedule; not having the chance to drive the car to a particular place and waiting for the whole process to be carried out and completed,
- Unavailability of inspection locations within their reach or close to their home for the process to take place
- The unwillingness to deal with the title loan firm in person.
- The car may be unavailable, probably because it is in the body shop, at the mechanic’s store, or the car is in the impound yard.
Getting a title loan without your car or vehicle present for inspection is almost impossible. However, at car title loans California, the process is simpler and more straightforward. We will need full photographs of the car. These pictures will show the overall body condition of your car. We will always want to do the physical inspection on the car through our representative. As the lender, we want to make sure that the collateral is in good order and that there are no significant damages to your car or vehicle.
It is worth mentioning here that when you are seeking a title loan online with us, you must provide the accurate legal details or information. You cannot falsify information about your vehicle as the provided details will be processed and verified at the loan center. Any discrepancies discovered in your provided information as contrary to the data from our car title loan calculator and your application denied automatically.
A car that has never involved in an accident and its body is in good condition has the higher chances of getting a substantial amount of a title loan; while the one that has been involved in many accidents and having poor roadworthiness may be denied for a title loan or just qualify for a lower amount.
Your overall vehicle conditions determine the possibility of getting not only your title loan approved but also the amount of money you will receive. If you want to take full advantage of every opportunity from your car for title loan application, do the following every time:
- Always drive safely. Be a defensive driver and not an offensive driver.
- Ensure you carry out proper and routine maintenance of your car or vehicle.
- Avoid reckless driving, over-speeding or anything that can subject you to have an accident and could cause damage or a permanent dent in your car.
Advantages of Choosing Car Title Loans California
Anyone can benefit from getting a car title loan. A car title loan can significantly improve the life of anyone with a poor credit history. Below are a few other reasons that would convince you into opting for car title loan California;
- Free and straightforward application process: The application process is incredibly free and simple and can be done online or over the phone. Unlike traditional lenders and other title loan agencies, the application process also eliminates too many documentations and sticks to the basics, which are; identification, car title and sometimes, proof of residency.
- Quick Approval: Once you have provided all of the information required during the application process, our representative will work swiftly, and unlike another financial institution, your funding could be available as quickly as the next business day.
- Terms and charges: Though the repayment length may seem scary, do not be worried. You will be allowed to pay back your loan as early as you would like without accruing any penalty charges.
- Payment plan: Car title loans California work with customers to come up with a payment schedule that will benefit both parties. However, it is of utmost importance to maintain punctual and regular payments after securing the money you need. Technology has made this simple by providing several ways that you can pay your title loan back. Isn’t this great?
How Can I Enjoy the Maximum Benefit From a Car Title Loan?
A car title loan is a clear case of using what you have to get what you want, and it is important to choose the best title loan agency. You want to make sure that the auto agency will be able to give you the maximum loan amount on your title. Thus, getting the most money and at the lowest interest rate should be the most important thing on your mind.
Car title loans California can do both. With our title loan program, we will give you the most money, at the lowest interest rate and with no prepayment penalties. Car title loans California gives you a means to pull the cash you need out of your car. It is quick, efficient, and can provide you with the money you need in a short time.
To get the most out your car title loan, you first have to approach the right lending institution and apply to the right institution. Highlighted below are a few tips that can help you get the maximum benefit from a car title loan;
- Choose the right car: How much cash do you need? Remember that the loan value depends heavily on how much the resale value of the car or vehicle you are using for collateral. So, if you have more than one car in your possession, choose the right one that can get you access to a substantial loan value.
- Make sure your car is sound and in good shape. The condition of your car determines its value, and the value of the car determines the loan amount you are entitled. If your car is damaged or out of shape in any form, there is that possibility that the worth of your car will drop. The worth of the vehicle determines the amount of money that can be granted to you, and this will be done by looking at the Kelly Blue Book.
- During the inspection, the odometer and engine will be checked. The millage of your car will also be checked. If your car has a Salvaged Title, it could lower the value or worth in half. This is because most of the parts for salvaged title cars are not from the original specs.
- Inform us if you added any cool features like an up-to-date digital stereo system or high-grade wheels to your car. Else, we will assume you have the basic package. An upgraded package sometimes improves the value of the car.
- To fast track the loan acquisition process, ensure that the car history and information are accurate. Car title loan request could be turned down if the information you provided is not consistent with our data after inspection.
- Repayment plans: Your ease and capability to repay your loan is also a big determinant factor for the amount you can take out. Before you enter into any agreement, ensure you ask about the lender’s repayment plans. Car Title Loans California offers various affordable and convenient plans that allow you to repay your loan quicker and at an affordable interest.
- Maintain your payment plans: After selecting your repayment plans, ensure you stick to it without fail to avoid build up interest. You can be smarter with your repayment plan by paying more each month to finish up the repayment in time.
Ensure you find out what will happen to your car after you lender grants you the loan. Many car title loan institutions would grant you title loan but will not allow you to use your car within the period of repayment. Do well to confirm this before applying for a car title loan.
However, Car Title Loans California allows you to drive and use your vehicle while you repay your loan. This policy is one of the attributes that make us stand out.
Criticisms about Car Title Loans and Why they Don’t Hold
Sam Gilford, a spokesperson for the Consumer Financial Protection Bureau said that “In our research on auto title loans, we found that many products may be marketed for a short-term financial emergency, but the long-term cost of the loan can often make a bad situation worse” Insinuating that car title loans can be dangerous on the long run.
Some other critic (Nerdwallet) also regarded a car title loans as payday loans’ bully brother, stating some “not so valid” points about title loan lenders that they;
- Don’t check credit.
- Don’t have to require proof of income.
- Require that the car is owned outright.
- Provide loans worth 40% or less of the car’s value.
- Can require that borrowers leave a key or install a GPS tracker or a remote immobilizer.
Similarly, CNN posted an article on why car title loans are a bad idea, pointing out high-interest rates as the biggest issue with getting a car title loan. The article also listed rolling over and repossession as the major reason why a car title loan is a bad idea.
All of these assertions are incorrect. In fact, they are vague and baseless. With car title loans California, you get the best title loan experience ever. Majority of our clients have enjoyed a positive experience with us and payments have also been very convenient for them. This is because of the efficiency of our title loan policies. Once the information you provided us is correct and authentic, then you have nothing to worry.
Remember that at car title loans California, we verify your income. This verification is for us to be certain that your income can support the loan, and that you can keep up repayments without any stress or inconvenience. With us, your credit score is never a deciding factor, though we do credit checks. Instead, your ability to repay the loan is the major defining factor in getting your loan. We have no pre-payment penalties and you can pay off your loan at any time.
Why You Should Choose Car Title Loans California
There are many title loan companies out there, but only a few can be trusted to offer the best and safest title loan. Many title loan firms may pretend to provide you with loans, but in the long run, you discover that they are trying to phish into your private information so they can scam you.
Out of the numerous title loan institutions in California, Car Title Loans California has been singled out to be the most trusted and reliable car title loan lender. When you apply to Car Title Loans California for a car title loan, you get a quote, and you get funded the same day with stress-free verification process within the states of California.
Below are the attributes that have given Car Title Loans California an edge over their competitors in the institution:
- Car Title Loans California has an easy application process with the fastest approval times to fund you in minutes and on the same day.
- You are at the liberty of using the money you receive from us for whatever you want.
- Unlike other vehicle identity loan firms, Car Title Loans California allows you to keep and drive your car while you are repaying your loan.
- We offer the highest value for your vehicle compare to our peers in the industry (up to $50,000).
- There are no prepayment penalties or hidden fees. You are free to pay off your loan as you want, not to cause a burden on you.
- Car Title Loans California is equipped with experienced and committed staffs and officers to process your loan promptly.
- Our customer service representatives are well mannered to handle your inquiries and available to answer any of your questions.
- Concerning your vehicle’s title, we will use the Kelly Blue Book (KBB) to see the wholesale value of your car.
- Proof of insurance coverage: We will verify your coverage, and we will add our name to the policy.
- Driver’s license: We will need a copy of your valid driver license.
- Proof of residency: We will need proof of residence; you can supply us with a utility bill in your name going to your home address.
- Proof of monthly income: We will need to verify with your bank statements or paycheck stub that you will be able to afford your title loan payments with us.
- Pictures of vehicle: We will need photographs of the front, side, back, and interior of the car. We will also need a photograph of the odometer.
- List of 6 references, 1 being a family member
How High is our Interest Rate?
Auto title-backed loans interest rates vary among lenders. It is typical for an auto title loan agency to give you a monthly interest rate. With car title loans California, you get a very low-interest rate, compared to what other title loan agencies can offer. The better part of the deal is that with us, there are no hidden fees or charges. You only payback whatever you borrow. Also, don’t hesitate to negotiate with us. Your convenience is what we protect.
Is there a pre-payment penalty?
No. Car title loans California does not charge any pre-payment penalty. We rather encourage you to pay off your title loans sooner if possible.
What Happens When My Car Breaks Down?
Come clean and relay the information to us. This is the best approach as we will agree with you on a common ground concerning repayments that will be convenient for you.
What If I Decide To Sell My Car?
You can decide to put up your car for sale; however, the proceeds from the sales must first be used to pay off the outstanding title loan so that you can be able to retrieve the title which you will issue to the buyer.
What is the Maximum Loan Amount I can Get?
It will interest you to know that at car title loans California, we offer you between $2,500 and $50,000. So, it is excellent for unexpected expenses. Remember, the value of the loan also depends on the value of the car. Therefore, the more your car is worth, the bigger the loan you can receive.
How Do I Get My Title Back?
We have integrity. Car title loans California will surely return your title immediately after you pay back the full amount due on your account. It is a guarantee!
Car title loans guarantee a sure way to get quick funding whenever you are broke or in need of money to handle a critical need. If you are stuck or constrained due to lack of cash, and you are not sure of where or how to get the money, you can take out a car title loan to ease your way through. Just be sure that you are going to have the money to pay back, then, you can apply with your car title and get a loan as quick as possible. It does not matter if you don’t have great credit. Car title loans California can help.
At car title loans California, we will get you more money than any other lender. We will get you lower payments than any other lender. We will get you a no pre-payment penalty title loan. We also will hold your pink slip while you continue to drive your car until you pay up the loan.
Get funds from $2,510 to $50,000 and receive approval in minutes. So, whether the problem is a bad credit or no credit at all, we’ve got you covered. You can get your loan request grated on the same day and still keep driving your car. It is fast, easy and convenient, with no hassle process whatsoever.
Title loans with car title loans California are quick and prompt. It is just four (4) steps;
- Get approved
- Provide the necessary documents, and
- Get Paid
For more information, you can visit our pages.
All of our loans are made pursuant to the California Finance Lenders License, so you know you are dealing with an established lender.
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