There are a lot of ways to get yourself the cash you need to make a large purchase or cover a financial crisis, but your options can become increasingly slim if your credit score isn’t up to snuff.
Luckily, there are options available to those with even the worst credit scores. One of those options include car title loans. But what is required for a car title loan and how do you get one? The answer is actually quite straight forward.
Before we go into what you need to get a car title loan, let’s go over what they truly are.
Car title loans are a form of secured loan that is based off of the value of your car and equity you have in your car. If you are looking to get a car title loan, simply search online and find the best title lenders in your area.
When you start your application process, your car title lender will evaluate your car and give offer you a loan based off of the value of your car. Your loan will not be worth the total value of your car, however. Car title loans are typically worth somewhere between 30 percent and 50 percent of the total value of your loan.
When you take out a loan, you will also be given a payment term in which you have to pay back your loan in full. Car title loans are generally short-term and their typically last anywhere between two weeks and a month.
The answer to this question depends heavily on which lending company you end up going with. Some companies have specific requirements. Overall, you can expect to be asked to provide information on the following list.
- You must be at least 18 years old
- You must be able to provide a government issued ID.
- There must be no liens on the vehicle you are borrowing against.
- You must own the vehicle outright.
- You must have the original title of the vehicle.
If you think this information sounds really easy to provide, you’d be right. Car title loans are famously easy to get, which is what makes them so popular, and also what makes them so dangerous.
While you might be ready to jump online or jump into your car and star applying for a car title loan, you should know that some lenders are far stricter in terms of the documentation they require before they approve you for a car title loan.
One other thing that you might need in order to get a car title loan is a proof of income. If you do not have a job, have no fear. You can use things such as disability, pensions, a retirement fund, social security, or unemployment benefits can also serve as a proof of income.
Car Title Loans in California
If you are living in California and are interested in taking out a car title loan, chances are good that you are concerned with learning exactly what the rules and laws regarding title loans in California are!
Title loans are only available in about half of the states in America. If you are interested in taking out a car title loan in California, you’re in luck! California is one of the states that title loans are allowed in. That being said, there are some fairly strict laws regarding auto title loans in California so that the state government can be sure that people like you who are interested in taking out car collateral loans are protected.
In California, state law requires that the minimum amount borrowers can be offered in exchange for their car’s title is $2,500. That means that the state law is making sure that you won’t be getting a loan worth just hundreds of dollars with a massive interest rate attached to ensure that you end having to pay more than you borrowed1
Similar to other types of same-day or fast cash loans, title loans in California are known to come with pretty high interest rates.
Typically, a lender will either apply a flat rate that you will owe to take out your loan in order to close the account, or even more likely a lender will simply apply an interest rate attached to the loan. That means that the larger your loan, the more money you will owe. The national average for interest rates of title loans is around 24 percent. That means that if you take out a loan worth $5,000, you will be expected to pay $1,250 on top of the $5,000 you owe to pay off your debt in full!
It can be quite the pricey transaction to make, and you need to think about whether or not you can truly afford a car title loan before you take on out to avoid increased interest rates, repossession, and more.
One great aspect about title loans in California is that if a title lender is planning on applying any further charges and fees such as a processing fee or administrative charge, they are legally required to let you know before you agree to terms.
That means that there will be no hidden fees that you have to worry about. Considering the amount of money that may be at stake, it is good to know that lenders are not only incentivized to treat their customers well thanks to online reviews and customer testimonials, but also because it is state law for them to do so.
Now that you know what is expected from you in order to take out a car title loan in California, and now that you know the specific rules and laws that apply to title lenders in California, it is up to you to decide whether or not a title loan is right for you.
If you are facing a cash emergency and need a cash for car loan ASAP, TitlePlan is here to help. Simply contact us either online or by phone and we will make it our No. 1 priority to get you the cash you need when you need it!