Get a Car Title Loan in California
If you are either in the midst or on the verge of a financial emergency, you might be wondering what your options are. Whether your debt has gotten out of control, you are facing unforeseen medical expenses, or your business is in dire need of an injection of cash, you are going to want to get cash as fast and as easy as possible. True Financial provide car title loans in california online in a quick and easy way.
Unfortunately, the speed and ease at which you can get access to the funds you need are heavily dependent on your credit score. If you do not have a very strong credit score, you may soon find that your options are quite limited indeed.
So, where can you turn? One of the places many Americans decided to turn when they need cash fast is car title loans. So, what are auto title loans, how can you get one, and what do you stand to gain and lose if you take one out?
Continue reading to find out.
Getting a Car Title Loan California
Whether or not you’ve ever heard of a car title loan, it is important to get all the facts before you decide to take one out. So, let’s go over exactly what they are. To put it simply, a car title loan is a type of secure short-term loan that you take out based on the value of your car and the equity you have in your car. Typically, in order to qualify for a car title loan, you must have a lien-free title on your car, and your car must have a value of at least $2,500. On top of that, you will most likely have to provide things such as a government issued ID and proof of income. You will also have to either allow your car to under go an in-person evaluation, or send pictures or videos online so that a prospective lender can determine your car’s value when comparing lenders.
While your car has to be worth a certain amount in order to qualify, you shouldn’t expect to get that amount for your loan if you are approved. Typically, car title loans are worth anywhere between 30 percent and 50 percent of the actual value of the car. We’ll break down why in just a few paragraphs.
Finally, car title loans are typically short-term. That means that your payment period may be as short as a couple weeks to a month. While there are definitely lenders that offer longer payment terms that can last six to 18 months, the shorter term options are most definitely the norm. A short term doesn’t mean the loans are cheap, however. In fact, car title loans typically come with pretty high interest rates. Annual percentage rates for car title loans can be as high as 300 percent. While it is unlikely that you will have to roll over your loan for an entire year, it is possible. Also, that 300 percent APR means that if your title loan is due in just a month, you will still owe 25 percent in interest alone. That means that if you take out a car title loan worth $1000, you will have to pay $1250 by the end of your loan.
If you are wondering why you haven’t heard about credit score checks, don’t worry, it’s not a typo. Because car title loans are tied to the value of your vehicle, the vast majority of car title lenders require no credit check throughout the entire application process. It can be incredibly useful if you have poor credit. In fact, car title loans can actually help you improve your credit. If you are interested in having your loan work to improve your credit, just make sure that the lender you are considering working with reports to the major credit report bureaus. If they do, you will have the added benefit of showing future lenders that you borrowed correctly.
At this point you may be wondering what the catch is. As you may have guessed, the secured aspect of car title loans refers to your car. If you are unable to pay off your loan and default on it, your lender has the option to repossess your car and sell it in order to recoup the losses they accrued by lending to you.
You have a lot of options when it comes to avoiding repossession including rolling over your loan to another month, but that will lead to added interest fees and possibly even more fees to pay due to rolling over your loan. That can lead to a dangerous spiral of debt that could ultimately lead to you not only losing your car, but owing money on top of that. It can get pretty dicey if you are not responsible with your title loan. That’s why it’s important to know exactly what you are going to be expected to owe, what you can afford, and if it’s the right choice for you.
Other things to keep in mind are what to look for when you are choosing the right title lender for you. Here are some things to pay attention to.
- Years of business: This will tell you how experienced a given lender is in the industry. The longer a company has been in business, the better the chances that they will be good to work with.
- Interest rates: this is pretty self explanatory. The interest rates will determine how much you are paying to take out the loan. Even a percentage point one way or the other can end up saving or costing you hundreds or even thousands of dollars depending on the value of your loan and the length of your payment term.
- Customer testimonials: This is a good way to figure out if a lender you are considering has a good reputation amongst former customers. That can help shine a light on what you can expect your experience to be like.
If you’re in need of quick cash and are on the wrong side of the credit score range, you might find yourself unfruitfully searching for personal loans. One option available to you, no matter what your credit score is, is a car title loan. That is, as long as you own your car outright. If you do, you might be asking yourself, “How can I get a loan with my car title?” Luckily, the answer is quite simply.
Find out how you can get a loan with your car title from a local or online loan shop quickly and easily. Getting yourself a car title loan can be broken down into five simple steps.
Apply for a title loan online or at a title loan shop
The first step to getting a title loan is applying for one. You can apply for car title loans online, or at a title loan shop. While online applications are probably easiest, you might be able to get your cash in hand quicker at a title loan ship because your car, the documents you need to secure the loan, and the money will all be in the same place. It can easily be a one-trip job that can take under an hour.
Many of the biggest lenders are open seven days a week and work on extended hours. Car title loans want to make things as quick and efficient as possible to make sure that you get your money when you need it.
Receive a pre-approval estimate
After you apply for the loan or title loan refinance, but before you are approved, you can expect to receive an approved loan amount from the title loan shop you are working with. The value of your loan will be based on the value of your car and the equity that you have in your car.
As mentioned previously, car title loans are certainly available to potential borrowers even if they have bed credit. If you are asking, “Can I get a loan with my car title even if I have bad credit,” the answer is a resounding yes. When it comes to your credit score potentially getting in the way of taking out a loan, do not hesitate if you have poor credit or even a past bankruptcy.
Car title loans are basically made for people with bad credit. That’s because car title loans are – as previously mentioned – based on the value of your car first, not your borrowing history. Title loan shops are willing to work with any potential borrowers as long as they have a lien-free car title and can prove that they will be able to pay back the loan within the given payment term.
Some documents you will need to apply for a loan
After your potential lender gives you a pre-approved estimate, you are going to need to gather the documents necessary to getting final approval. These are the things you can expect to have to produce:
- Your car title in your name. If you can’t find it, many title loan shops will help you find it. If the title is in someone else’s name, or has multiple names on it, you could even get help on that.
- A valid driver’s license or government issued ID.
- Proof of residence. Typically, a utility bill will work just fine.
- Proof of income. This is so that your lender can dictate whether or not you will be able to pay back your loan within the payment term. If you are not currently employed, you can prove your income by providing documents related to self-employment, retirement, disability, or social security. You can even use proof of under-the-table employment in some cases.
What is my car worth?
Now you’re going to have to get into the nitty gritty of the actual value of your car. If the title shop you are working with allows you to apply completely online, you’re going to have to take pictures of your car to send over. Make sure to make your car look good, but also be honest. If there are nicks and dings, you might as well be upfront about them. If the title shop you are working with wants you to bring your car in for an in-person inspection, do not be wary. That is quite common as well.
Whether the inspection is done in-person or by photographs, the title shop is simply looking to equate the value of your car. One thing to keep in mind at this point in the car title loan process is that the loan you are eventually offered will not equal the actual value of your car. Typically, title loan ships will offer you a loan that is equal anywhere between 25 percent and 50 percent of your car’s total value.
The recent for this is because in the event of a default on the loan, your lender will need to sell your car to make up for the money they have lost in the loan. They will not be looking for the best price, but the easiest sale. That means they will likely be selling well below market value.
Same Day Cash Car Title Loans in California
Getting the cash is obviously the funnest part of the car title loan process. Depending on the title loan shop that you are working with, you will either have to go to their brick and mortar office to retrieve your loan, or you will receive a direct transfer to your account.
Typically, same-day loans are possible when it comes to title loans. That is one of the primary benefits of this type of loan – truly fast cash!
Now that you’ve got your cash in hand, make sure to start making money and saving so that you can pay back your loan before your payment term ends. Depending on the length of your term, you may be expected to pay back the loan plus the interest you accrue over the life of your loan within the month.
You should also find out whether or not your lender charges pre-payment fees.
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