What is Required To Get A Car Title Loan

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Written By Robert Davidson


Getting approved for a car title loan in California has never been easier, as most of the requirements are streamlined and easy to understand. With the increase in companies that provide online title loans, we’ve seen the application process time cut in half. On top of the quick approval time, you can quickly find out how much money is available from the equity in your vehicle!

Problems arise when someone doesn’t live in a major city like Long Beach or San Diego, as it can be hard to find a local company that spells out the lending requirements for a secured loan. Instead of applying online in a few minutes, they would need to drive hours and hope for approval. The approval process in California is much easier now. Other than the main requirement being your car’s title, you shouldn’t have to spend too much time getting the paperwork together.


What Are The Current Title Loan Requirements

Some people think a decent credit score is always required to get a short term loan. With unsecured loans and bank loans that’s often the case 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 vehicle is the main requirement for any title loan and you stand a decent chance of qualifying for a loan with a vehicle that’s worth $5,000 or more.

Other requirements include proof that you can pay back your loan each month according to the repayment terms. You need to show proof of income and that can be with payment stubs or a bank statement. You also need proof that the vehicle is insured and currently registered in CA. Some less common requirements are that you need to bring the vehicle in for an inspection so your lender can verify the current condition of the vehicle. You will also sometimes 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 the current lending requirements as well as the condition and resale value of your vehicle. To determine how much money is available, you first need to check the car’s comparable sales price here in CA. A 2015 Toyota Camry has a value of 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 total equity amount of the car. Of course, you can get more for a title loan on luxury cars and those with low mileage.

After getting the car’s value, you need to subtract any liens or outstanding loans against the car. If there are no other claims on the vehicle, then you can use the car’s estimated value when applying for a title loan based on the equity and other lending requirements. Loan amounts in CA range from $2,500 to $25,000. As of 2023 the average funding amount is $3,500.


How much can i get with a title loan?


Additional Title Loan Requirements in California

A licensed lender can provide funds for online car title loans in California of over $2,500, and the requirements for this type of secured funding will vary among the different companies. The lender needs to be licensed and must show they follow 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. 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!


How Are The Underwriting Requirements Different In CA Versus Other States

The underwriting requirements for California title loans are a bit different from other states. The biggest 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.


What Are Some Documents Required For A Title Loan

Another aspect of the qualifying process is to determine the exact amount you can borrow and what additional documents may be required. Check out California’s current title loan regulations and look at the different rates and payoff terms.

While the main paperwork and documents required for title loans is the car’s title, you also need to prepare to hand over things like paystubs and your car’s insurance information. Anyone lending cash 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 they’re required.

Most lenders in California will work with you to quickly determine how much you can get with collateral loans on a vehicle. Paying more than the minimum each month will save you money, and it 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. When you get final loan approval, pick up 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.


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