What Is Required For a Title Loan in California?

keep your keys with a pink slip loan
Written By Robert Davidson

Getting approval for a car title loan in California has never been easier. With the increase in companies that provide online title loans we’ve seen the application process time cut in half. A few years ago there were few online lenders. Most borrowers had to pick up the phone book and find a local company that would work with them. Problems arise when someone doesn’t live in a major California city like Los Angeles or San Diego. Instead of submitting an application online in a few minutes they would need to drive hours and hope for an approval. The approval process in California is much easier now, and we will take you through it one step at a time.

Many people think you need a good credit score to get a high dollar title loan. They consider what’s needed for a mortgage refinance or even a personal loan from your bank or neighborhood lender. As we wrote about before, that isn’t much of a factor when it comes to title loans in California. What is important is that every applicant understand what lenders require. They will make sure that every local applicant has a title that is free and clear. This means you no longer owe any money to a finance company. There are very few companies that will fund a title loan if they know you’re still paying a bank back for the financing. Also, you won’t be able to keep the pink slip or car note until the loan is done. You may need to submit extra documents to get past a higher minimum loan amount. The title loan company will also need to follow a few specific California regulations. In California, a lender can provide funds for car title loans over $2,500. The company needs to be licensed and must show that they are following all other applicable laws and regulations. A car title loan company will need to see the vehicle in person. This applies to online title loan applications as well. In a situation where you’re working with an online only lender, they will often send a notary to meet with you in person. This is necessary because someone can lie about the condition of the vehicle. The notary will check for other issues during the vehicle inspection.  Some firms that provide loans online will want to make sure you have an active bank account.  This is often going to be limited to only a checking account.  They will need to know if you’re employed and can make the monthly payments.  Some lenders will even call your employer to verify that you work there!

Another aspect of the qualifying process is to determine what type of financing you can afford.  Most people are going to ask for the largest loan amount, but this isn’t prudent. These types of loans come with high interest rates so it’s important to borrow as little as possible. As an example, on our online application you can choose from a variety of different options.  Check out the requirements for California title loan companies and look at the different rates and payoff terms.  Most lenders will work with you to determining this amount but be sure they have your best interests in place. Try to focus on the monthly payment structure and total payoff. If you can afford to pay more each month then do that. Find a lender in California that will let you pay off the vehicle equity note early. Prepayment of the loan is going to save lots of money and it should come with no fees or restrictions. Try to find a company that you’re comfortable working with. If something comes up down the road it will be easier to contact them and explain your issue. Most car title loans in California are funded without problems, but there can be issues. Be patient and know that you’re doing what’s best for your financial situation. When you get final loan approval pickup your money and use it wisely. Do all things possible to pay back the car title loan in a quick amount of time to avoid fees and other interest charges.