Requirements and State Laws that Pertain to Car Title Loan California

A California car title loan is a non-traditional loan option that can give you easy access to extra funds.  You can use the cash you can get from this loan for a business expense, a medical expense, a basic living expense, a long overdue house or car repair or even a gift for a loved one or for yourself.  There are no restrictions on how you can use the proceeds of a car title loan; you can use it for whatever purpose you wish.  These loans are not difficult to obtain.  The requirements are minimal and approval rates high.

The Basic Requirements

Available to all interested California residents who are at least 18 years old, a car title loan California can be availed of only by those who are owners of cars of value with clean titles and with adequate income to pay back the loan.  

Bad credit, no credit or even bankruptcy, will not hinder you from getting a car title loan. What is important to the lenders is that they are holding on to the clean title of vehicle in good running condition.  

Car Specs and Requirements

Even if the loan is called a car title or auto title loan, lenders also accept other vehicle types like vans, pick-ups, trucks, motorcycles, SUVs and even RVs.  Although most lenders are not too particular about a vehicle’s type and make, most lenders only accept cars that are not older than 10 years old. Vintage or classic cars however are accepted by some lender as long as they are in running condition.

California Laws on car title loans

The minimum amount that a borrower can get from a cartitle loan in California is $ 2500.  If you need a smaller amount then you have to look for other loan options like a payday loan perhaps.  There are imposed interest caps on loans in the amount of $ 2500 while bigger loans have uncapped interests.  

The processing fees that lenders can collect are also regulated by state laws.  For loans that are $5000 or less the allowable fee is $ 75. The fees for loans above $ 5000 are however not regulated.

To prevent ballooning which is often the cause of repossession, California laws require that California car title loans be fully amortized.  This means that with every payment you make you are paying for the interest and a portion of the principal.

The Basic Things You Need to Have if You Want to Apply for a Car Title Loan California

Having an urgent need for cash can prove to be stressful especially if you have bad credit.  Banks will not take a chance on you; family and friends may have second thoughts on lending you cash considering your status. If you are looking for a willing lender, consider approaching non-traditional loan vendors offering car title loans.  A car title loan is also known as a title loan with bad credit because even individuals with bad credit can qualify for this loan type as long as they can present a clean car title as collateral.  Although this loan alternative is not available in all of the fifty states it is available in the Golden State.  Californians can avail of a car title loan California through reliable car title loan vendors that service the state of California.

Vehicle of value with a lien free title is a major requirement

To qualify for a California car title loan you must be the owner of vehicle of value.  Even heavily used vehicles can still be acceptable to lenders as long as they are in running condition, not more than 10 years old and with a current market value of at least $ 1000.   Additionally, the vehicle should have a lien free California title which you will submit to the vendor to secure the loan. During the repayment period the lender will be your vehicle’s lien holder and upon full payment of the loan your title will be returned to you lien free.

Valid IDs have to be submitted

One of the requirements which you will be asked to submit when you apply for a car title loan in California is a valid driver’s license or any state issued identification with your birth date. This is required so that lenders can ascertain that you are of legal age and a resident of California.

Proof of Income is required

For your Ca car title loan application to be approved you have to show proof of your capacity to pay back the loan.  Acceptable proofs of income which you can present include: latest pay stubs if you are employed on a regular and continuing basis, latest federal income tax returns if you are self-employed, bank statements if you are receiving pension or a disability benefit. 

Names and contact information of 3 references should be provided

Like when applying for other types of loans, you will be asked to give the names and contact information of at least three references who will be contacted by the vendor in case you default on your loan payments.