Having a decent credit score is critical when it comes to most types of financing options in California. This is very different with short term loans. Most short term financing is not dependent on having a good credit score. This type of financing includes title loans, payday loans and cash advances. The same is true when it comes to California title pawns. There is no minimum or maximum score requirements at play when someone applies. Often it can be easier to get approval if you apply face to face with one of the many lenders in Los Angeles, Anaheim or San Francisco to name a few. This occurs because the lender has met you in person. Some companies put added trust on meeting someone and this goes hand in hand with inspections for a car title loan. Remember, most California title loans require some type of vehicle inspection. A lender will need to see the car and make sure it has no damage before handing over the cash. This means you can not only get the vehicle inspection, but also meet the lender face to face. Other equity finance companies will want to verify that you’re still employed and have the ability yo pay back the loan. This means they may call your current company to verify employment history and hours worked. The goal here is to get loan approved and ensure that your credit score is not a factor in the lending decision.
Most California lenders know that someone who needs a car title loan is going to have a poor credit score. In all likelihood, the borrower would be better off with a bank loan or installment loan financing. This type of borrowing requires good credit and other supplemental info that most people don’t have. Another factor to consider is that these online title loans are secured. You can view the different types of title loan options in CA by clicking through to our homepage. We have recently updated our resources to better provide users with more information about how to best apply for financing. In California a loan that has collateral tied to it is worth more to the original lender. Therefore someone who takes out a $10,000 bank loan in Los Angeles will need to show a better credit report. Compare that to someone who hands over the pink slip to their 2010 Ford that has a blue book value of $15,000. These types of loans are similar in a sense, but the qualifying standards are much different. It’s easy to understand why a lender will require someone with good credit for a unsecured loan. We see the same pattern with an applicant who applies for a payday loan versus a bank loan. The person applying for a payday advance will have a much more difficult time gaining approval for high amounts because of lack of credit and collateral. Someone who applies for a bank or credit union loan will need to show a perfect or good credit score with no loans in default or bankruptcy. In a perfect situation any borrower would immediately qualify for some type of online financing with low finance charges and decent terms. But that’s not always going to be the case with high risk short term loans. Any lending company runs the risk of a fraudulent application or unqualified customer.
Sometimes a lender will require you to produce the most recent credit report. California has strict credit reporting laws and cities like Sacramento and Los Angeles have citywide restrictions as well. When a lender requires a recent credit report you may also need to show that you’ve been paying bills on time. Remember recent car payments probably won’t apply here because the car needs to be paid off in full. The pink slip needs to have full equity available. You need to possess it to hand off to the title loan company. If you have past issues with a bank or creditor explain them to the lender. Most companies that fund online title loans in California will understand that issues come up. These types of loans have high interest rates for a reason. They’re set up for consumers with vehicle equity who otherwise have no other financial options. Be sure to find a California lender that will work with you and always stay in touch with them. You don’t want to fall behind on payments and risk having your vehicle repossessed!
Having lived and worked in California his entire life, Robert has a strong appreciation and understanding of online lending. He’s managed teams of sales agents and customer service reps for a local title loan company and fully understands how important it is to respect and listen to his customers. He’s approaching 8 years in the title lending industry and looks forward to helping consumers all across the state.