No Inspection Title Loans In CA - What To Know
California's residents have long been able to take out a car title loan that doesn't require a vehicle inspection. You can go back decades and see that people have used their pink slips to get quick cash. Most companies will still require some type of income verification and other document checks. This can include employment verification and a vehicle inspection. With that, it's become much easier for California residents to get a title loan online as opposed to how it was years ago. It can often be easier than if you wanted a payday loan or cash advance.
Remember with a no inspection loan, you're putting up a vehicle as collateral. A payday advance is entirely unsecured. As well all know, this type of financing comes with high interest rates and the risk of losing your vehicle if you fall behind on payments. The flip side of that argument is that these secured loans aren't made for everyone. Typically, people who don't qualify for other types of loans such as a bank loan or installment loan will be best suited for a title loan. Most lenders won't accept someone with bad credit or past borrowing issues.
Regulations For Online Title Loans Without Inspection
There are literally dozens of regulations on the books in California that pertain to title loans. That doesn't include city and federal restrictions. For example, Los Angeles and San Diego have citywide enforcement rules that ban certain lending practices. Sacramento has restrictions in place that seek to regulate the title loan industry as a whole. The Federal Government has many restrictions from all types of governing bodies as well. The CFPB is probably the most well known of these. Just recently the CFPB based new rules that seek to outlaw specific types of loans. While these rules mainly target payday loans, they will also affect vehicle equity loans.
Please research any rules that may pertain to you on both the local and federal levels. As this site is about California title loans, we try to only focus on California-specific restrictions. You can view more information about title loans in this state on our homepage. We also break down the steps to take when looking for an online car title loan in California. While some states completely outlaw car title loans, California seems to take more of a mid-line approach. They don't deny consumers to make a choice when it comes to getting a loan. But there are some basic restrictions to consider when one needs a title loan in California.
California Rules For No Inspection Title Loans
Like most states that allow car title loan lenders, The Golden State doesn't do much in terms of controlling the interest rates and finance charges that companies assess. Many of the largest companies charge rates to borrowers that can approach 100%. Some secured lenders will have an annual percentage rate that's much higher than this. Those no inspection companies are typically out of state and working with a large bank or national lender. If you take out an auto title loan with a company like that, it's important to pay off the full loan amount as quickly as possible.
You'll notice that most short-term financing companies don't offer online title loans of less than $2,500 and that's especially true for title loans that don't require a car! There's a logical reason why companies don't provide equity loans under that amount. State law says that loans under that amount can't charge interest rates of more than 33% a year. Therefore, most car title loan companies in California have a minimum amount of how much they can provide for a title or equity loan. These online title loans over $2500 don't have any restrictions when it comes to financing charges.
Consumer advocacy groups will say the rates are too high. Online title loan companies will say the rates are high because of the consumers they're dealing with. They say this type of financing comes with high default rates and many applicants have access to no other types of traditional funding. While there's always the option of a payday loan, most borrowers can only access a few hundred dollars with this option. Vehicle equity loans provide a much large loan amount than typical cash advances. Besides the interest restrictions, there are certain fees and charges that a California title lender can charge.
There are protections afforded to consumers who miss payments on their vehicles. While this will lead to a repossession, you have rights as a California resident. For example, a title loan lender must tell you that the vehicle was repossessed. You will also have a specific amount of time to pay off the no inspection car title loan and hopefully retain possession of the vehicle. Once again, please check out the State of California site that details all this specific information.
