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.