California Car Title Loans
Obtaining California title loans does not need to be complicated. There are a few things that you will need to know, but nothing that is going to overwhelm you (hopefully). On this page, we want to introduce you to the world of California title loans. Don’t worry; it is not as scary as you may think.
What are title loans?
California title loans are loans that you will take out against the value of your vehicle. You will need to own the title to your vehicle, so you generally will not be able to take out California title loans against leased vehicles and the like.
In most cases, the title loan will be taken out against a car or a motorcycle. However, in rare cases, there is no reason why you should not be able to take out a title loan against a boat or something…as long as you own the title to it.
Can you still use your vehicle?
You can. When you take out a title loan, you will not be physically handing your vehicle over to the lender. This means that for the duration of your loan, you can continue to use your vehicle. The only time you will lose access to your vehicle is if the lender seizes it because you have failed to pay your loan back on time.
How much can I borrow in California?
This is something which is impossible for us to answer. It is going to be completely dependent on the company that you work with and the overall value of your vehicle.
Don’t think that you are going to be getting the full value of your vehicle when you take out a title loan. You will be getting far below this as the lender needs some sort of ‘protection’ that you are going to pay it back on time. If you don’t, they will be selling the vehicle on and they need to make their money back. If they gave you the exact price that your vehicle is selling for on the second-hand market, then they would end up making a loss…which would be terrible for them.
When you go to a California title loans company, they will likely ask you how much you wish to borrow from them. They will try and get as close to this value as possible. They may not get it dead on, probably because your vehicle is worth less than you think it is worth, but they should be able to get pretty close to it (hopefully!)
What do you need when you obtain a title loan?
You won’t need much when getting your hands on California title loans. Most lenders will need nothing more than details of your title, as well as ID to prove that it is actually your name on the title.
Who are title loans for?
Title loans are loans which have been designed for those who may find that it is difficult for them to get credit elsewhere. So, if you have a poor credit history (or no credit history at all), then having a title loan will be the right option for you (in most cases). However, do be aware that because there are no credit checks being carried out, there is still a lot of risk on the part of the lender. This means that the interest rates will be higher than your typical loan. However, because you are going to be putting up collateral, the interest rates will still be lower than if you got a payday loan or something similar to that.
These loans are also ideal for those who need to get their hands on money nice and quickly. For example; if you get a title loan online, then the money could be placed into your account right away. If you are going to a physical location to get your title loan, then you may be handed the money in cash.
These loans are not for long term borrowing. They are there to meet your immediate needs. If you would find it difficult to pay back your loan in a month or two, then this is not the right loan for you as you will end up losing your vehicle.
What happens I default?
The whole purpose of giving up the title to your vehicle as collateral is to provide the lender with a bit of protection. They need to know that you are going to be paying your loan back. If you do not, then the lender will have the right to sell the vehicle. If your loan is not paid back on time, then they will come to your property and seize the vehicle from you (some may ask you to bring it to them). They are legally able to do this. It was in your contract.
In some cases, the lender may give a little bit of leeway on your loan. If you think that you are going to be paying a day or two late for your loan, perhaps due to an issue with your bank account or something, then you can talk to the lender and see if they are able to help you out. There is no guarantee that they will be able to, but it certainly never hurts to ask.
Best companies in California for title loans
The best companies for title loans in California are those that can be found online. This is because there are so many options, and they are all going to be striving to offer you the best possible price on the loan. However, you can also go to your local store to obtain a loan. However, whichever route you end up going down, it is absolutely vital that you take the time to talk to the lender, or at least research them, to find out they are reputable. Here is our list of car title loan companies online that you can choose from.