How To Obtain a Car Title Loan in California
Saturday 3rd June, 2017
How To Obtain a Title Loan in California
A title loan is a loan type that involves quick money. Oftentimes, it gives consumers money fast in emergency situations. These types of loans may carry a high interest rate for a short period of time, but can help consumers who need help fast. With a title loan in California, a vehicle is used as collateral. The title loan company such as True Financial keeps this vehicle’s title until the borrower pays back the loan in full.
Typically, this title loan is determined by approximately 50% of the appraised value of the vehicle that is being used by the borrower as collateral. The loan holder will keep the vehicle during the duration of the loan. If the loan is not paid back on time, the loan company, True Financial or otherwise, can take possession of the car and sell it to earn the money back from the default loan.
In California, even a salvaged car can be used in order to obtain a title loan. A salvaged vehicle is one where there is more damaged then the car is worth. However, any vehicle with any monetary value can be used for a title loan. These vehicles can be repaired to be worth a lot more than a title loan, but the loan holder doesn’t have the money to do the repairs. A salvage title is applied to the car when something bad has occurred to the car itself. Many times this will happen due to hurricane or flooding. Most states have different requirements that convert a car to a salvage title when the expense to repair the vehicle is more than 75% of the car’s actual worth. Many vehicles can be repaired and be worth above a title loan amount, which is why companies such as True Financial will accept them as collateral.
To get a title loan with a salvage car title in California, the borrower must have an excellent credit history, score and a proven track record of paying other debts on time. They will need to find a title loan company that is willing to finance this type of title, if the car is newer, that will make it a lot easier.
The Title Loan Process in California
In order to get a title loan, a borrower must have a government-issued ID, updated auto insurance coverage proof, a clear title (nothing owed), proof of income and in some cases, personal references. Ultimately, requirements for a title loan will depend on the title loan company itself and the state one lives in.
It's always important to have proper insurance on a salvage vehicle title in case of other damage or even theft. Without coverage, the car will hold absolutely no value and the title loan company will lose money if the title loan isn’t ever paid in full.
Title loans in California are typically used when the borrow is in need of immediate emergency funds and has no other alternative route. This loan is high interest bearing and for a short period of time. These short-term loans mean that they must be paid back in full with interest quickly. This means that someone needs to ensure they can pay back the money quickly before taking out this type of loan.
While it may be convenient to get a bank check for money quickly, it should be thought about closely. This isn’t free money, but loaned money that must be paid back and quickly at that. For those who have weighed their options closely, finding a title loan in California from True Financial isn’t difficult. Bring all of the necessary documents with you to fill out an application and determine whether or not you are a candidate for this fast money loan.