No Inspection Title Loans Online - 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 need 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 than a few 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. If you can get approved for a personal loan with better rates, go that route.
Regulations For Online Title Loans Without Inspection
Certain regulations in California pertain to title loans and how much money you can borrow using your vehicle as a collateral. However, these state restrictions don't include local city ordinances. For example, Los Angeles and San Diego have citywide enforcement rules that ban certain lending practices. Sacramento, on the other hand, has regulations that regulate the title loan industry.
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 explain the steps 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 a choice regarding 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 to control 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 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, paying off the entire loan amount as quickly as possible is essential.
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 an APR higher than 36%. 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 cannot access 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 specific fees 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 the car 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 information.