In California, car title loans serve as a form of relief fund for individuals who are in need of emergency loans. Title loans has to do with providing your vehicle title as collateral to secure a loan. Here, the amount you can qualify for is dependent on the value of your vehicle, it’s not necessarily credit ratings. Even with a bad credit score you can still qualify for this loan.
Another factor includes income history which also be used to review borrowers whether you are self-employed or unemployed. The situation we have here is like an temporary exchange. The lender becomes a temporarily legal owner of your vehicle when you go in for a title.
This is temporary because the car returns back to the rightful owner after repayment of the loan is complete. That is why we referred to it as a temporary exchange.
California Car Title Loans – How They Work
For title loans, you don’t necessarily have to provide details or requirements in order to qualify. Make available your car title and a lender will attend to you based on the current value of your car. In California, you can get up to $2,510 title loan.
When you are able to secure a title loan and makes payments, you can still drive your and use the loan in a way that best fit you but remember that the lender is still the lien holder till you repay your loan.
There are several lenders online and physical office locations that provide California car title loans in U.S.
California Car Title Loans Document Requirements
To qualify for title loans, lenders expect certain documents from borrowers to proof their eligibility. These documents include;
- A proof of identification (any form of ID card; Driver’s license, US, Passport, Military ID).
- Certified title of your car
- Photos of your car
- Proof of resident ( be resident in California).
- Proof of income (Social security, bank statement, unemployment benefits, etc.)
You are guaranteed a title loan if the above documents are intact and verified. Provide genuine documents and smile while you leave title loan offices in California with your cash and car.
Default on Title Loans and It’s Consequences
Defaulting on loans is a very serious issue and disadvantage to borrowers. There are several ways lenders tackle default on title loans according to the state laws. Mostly, some send right to cure notice to indicate that you don’t have much time left to repay your loan.
Some of the ways lenders tackle default on title loans include repossessing the car. The lender takes over the car and try to auction it. They try to recover the loan amount you owe them.
When there is a surplus, they can return the rest to the borrower per the state. Others, will also find ways and means to pay off your loan.
Title Loan Payment From Lender
Once your title loan has been approved by a lender, there are several ways you can receive your money. This can be done;
- In person (taking the money in person at their physical location).
- Through MoneyGram
- Mailed Check
- Automatic Electronic Deposits (into your account).
California has its own laws and regulations when it comes to lending, therefore it’s very important to know them before you deal with lenders. Find out more on laws and regulations about car title loans in California.