What is Required To Get A Car Title Loan In CA

Getting approved for a title loan in California has never been easier. We've streamlined the underwriting requirements and made it easy to apply online with California Title Loans. Our online application process time has been cut in half, as now all you need is a lien-free vehicle and proof of income!

Approval is a bit more complicated in larger cities like Long Beach or San Diego, as finding a local company that spells out the lending requirements for a secured loan can be challenging. At California Title Loans, we want you to understand what you're getting into before signing off with a lender. That's why we've listed the current lending requirements below and have broken down the documents required to get approved.


What Are The Current Title Loan Requirements

People think an excellent credit score is always required to get a short term loan. That's often the case with unsecured and bank loans, as your lender underwrites the loan based on your credit profile. However, with a title loan, your credit history is not nearly as important as the value of your vehicle. The equity you bring to the table with your car is the main requirement for any title loan, and you stand a decent chance of qualifying for a loan with a vehicle worth $5,000 or more.

Other requirements include proof that you can repay your loan monthly according to the repayment terms. You need proof of income, which can be with payment stubs or a bank statement. You also need proof that the vehicle is insured and registered in CA. Some less common requirements are bringing the car in for an inspection so your lender can verify the vehicle's current condition. Sometimes, You will need 3-4 references from past lenders or friends and family.

These requirements are far less than what you'd expect from an unsecured lender, and ultimately, you can qualify with just the lien free car title and proof of income. Any other requirements are less common, and you should be able to qualify for a title loan of $2,500 with a vehicle that's title and year 2010 or newer.


How Much Can I Get With A Title Loan

Your loan amount depends on current lending requirements, vehicle condition, and resale value. You must first check the car's comparable sales price in CA to determine the funding amount. A 2015 Toyota Camry is around $13,000, while a 2009 Honda Civic LX is worth around $7,000. With those values, you can often borrow 50% or more of the car's total equity amount. Of course, you can get more for a title loan on luxury cars and those with low mileage.

Loan amounts in CA range from $2,500 to $25,000. As of 2024, the average funding amount is $3,500, with a 12 to 48-month repayment term. Some customers can qualify for lower amounts of around $2,500, and these loans require vehicles valued at $5,000 or more.


Two borrowers reading through a contract to see the lending requirements.


Additional Title Loan Requirements in California

A licensed lender can provide title loans in CA of over $2,500, and the requirements often vary among the different companies and their specific underwriting requirements and procedures. A title loan company will want to inspect your vehicle in person, which is generally required to verify the vehicle's value and current condition.

The inspection agent will check for other mechanical issues during the vehicle inspection, and they'll confirm the VIN and mileage. The inspection should take less than 45 minutes and some companies will schedule the inspection and document signing simultaneously.

Some firms that provide loans online will want to ensure you have an active bank account. They want 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!


How Are The Underwriting Requirements Different In CA Versus Other States

The underwriting requirements for California title loans differ slightly from those of other states. The most significant requirement is that you own the car outright, and the fact that CA currently limits caps most secured loan amounts at $10,000. A lender will also check your employment status and ability to repay the loan on time per state regulations. They may require additional security if there's more risk involved, especially if it's a company that pays off title loans. Lastly, other states outlaw all vehicle equity loans, while some have no requirements for loan amounts and interest rates.


Title Loans - What Documents Are Required

Another aspect of the qualifying process is determining the amount you can borrow and what additional documents may be required. Check out California's current title loan regulations and compare the rates and payoff terms.

While the main document required for title loans is the title itself, you must also prepare to hand over things like paystubs and your car's insurance information. Any lender will want to know the car is covered in case of emergency or theft, and you need to show documentation of full coverage. Also, have your vehicle registration forms and bank statements ready if required.

Most lenders in California will first determine how much you can get with collateral loans on a vehicle. Paying more than the minimum each month will save you money and should come with no fees or restrictions.  Most car title loans are approved without problems, but there can be times when you don't get approved, especially if you have bad credit.

Call California Title Loans anytime to learn more about what's required for a title loan! Reach us at 855-339-1001 to see if your vehicle qualifies and to learn about our other underwriting requirements!