What Do You Need to Apply for a Title Loan in California?

21Mar2018
Written By Robert

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 being able to apply 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.

When it comes to applying for a title loan you may think it involves having a good credit score. As we recently wrote about, that isn’t much of a factor when it comes to California title loans. What is important is that every applicant understand what lenders require. They will make sure that every California applicant has a title that is free and clear. This means you no longer owe any money to a lender. There are very few companies that will actively fund a title loan if they know you’re still paying a bank back for the financing. Also, you won’t be able to physically posses the pink slip or car title until the loan is done. The title loan company will also need to follow a few specific California regulations. In California, a lender can only provide funds for title loans that over $2,500. The company needs to be licensed and must show that they are following all other applicable laws. A California title loan company will need to see the vehicle in person. These applies to online title loan applications as well. This is necessary because someone can lie about the condition of the vehicle. There are also other issues they look for during the vehicle inspection.  Some firms 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 currently employed.  Some lenders will even call your employer to verify that you actually 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 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.  Choose between title loan companies in CA that have 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 car title loan early. Prepayment of the loan is going to save lots of money and it should come with no fees or restrictions. Lastly, 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.