Are you in need of quick cash and unable to apply for a bank loan due to bad credit? Applying for a title loan in the Golden State is a quick and easy solution to your cash flow needs. Whether you have to cover a surprise bill or an unplanned expense, a title loan can help you receive the money you need as quickly as possible here in sunny California.
What is a title loan?
Car title loans are short-term loans that use your vehicle as collateral so you can borrow up to a certain percentage of your car's worth. Because no credit check is required, you can be approved even with less than perfect credit. However, title loans come with risks such as the possibility of losing possession of your car if you're unable to repay the loan.
Learn: Can you get a title loan with bad credit?
California title loan requirements
While applying for a bank loan can be time-consuming, applying for a title loan is relatively simple. The requirements for a title loan include the following:
- A California driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in California
- A running vehicle
Learn: Can I get a title loan without the title?
Also, you must be over 18 years of age and not serving in the United States military.
The title loan process
Usually, applying for and receiving a title loan in California takes an hour or less. You must complete these six steps:
1. Application
Begin the process by filling out an application online telling us more about you and your car. Lenders will use this information to determine if you qualify for a title loan.
2. Verification
At this point, lenders will use the data from your application to verify the information before considering you for the loan. This typically includes your ID, proof of income, residence, and vehicle title.
3. Inspection
During the inspection process, we will take a closer look at your vehicle to determine it is in good working order and assess its fair market value.
Learn: Can you get a title loan with a damaged car?
4. Agreement
After the approval of your application and vehicle inspection, your lender will draw up a contract covering all details of your loan agreement. These details include the loan amount, repayment process, and interest rates.
5. Disbursement
Funds are then distributed to you through a variety of methods, including directly via a cash or check, or indirectly through direct deposit into your bank account.
Learn: Can you get a title loan without a bank account?
6. Repayment
Upon receiving your money, you are then responsible for making repayments on time as specified by your contract. You'll get your title back after the loan is fully repaid.
Learn: What happens if you don’t pay a title loan back?
How title loans are regulated in California
Title loans in California are currently regulated under California Financial Code § 22000 et seq.
Interest rates
The maximum interest rate for car title loans is 30%. According to state law, the minimum amount a consumer can borrow through a title loan is $2,500.
Repossession laws
Once a breach of contract occurs, the lender can seize your vehicle. Repossession may occur anywhere within the state of California if you default on your loan payments. Repossession may also take place if the lender discovers you provided them with false information.
The lender is not obligated to inform you before taking possession of your vehicle. However, they must tell you where it is and how to get it back after forty-eight hours of repossession. If you have not regained possession of your car within 60 days, the lender can place the vehicle for auction.
Cost considerations and title loan alternatives
The cost of a title loan in California is dependent on your loan amount and your APR. Here are a few examples to help illustrate the true cost of a title loan.
- Example 1: You borrow $500 at an APR of 300% and pay it back in 30 days.
If you took out a $500 loan and paid it back in 30 days, you would pay a total of $625 back to your lender in 1 payment. In this example, you’re paying $125 in finance charges to borrow $500. - Example 2: You borrow $500 at an APR of 300% and pay it back in 6 months.
If you borrowed $500 and paid it back in 6 months, you would pay a total of $1,016.46 back to your lender in 6 payments of $169.41. In this example, you’re paying $516.46 in finance charges to borrow $500.
Personal installment loans: A better and more affordable way to borrow money with bad credit
There are alternatives if you want to borrow money but are not interested in receiving a title loan. For example, installment loans for bad credit are another quick and efficient way to secure the funds you need without having to offer your vehicle as collateral.
Unlike a title loan, an installment loan does require a credit check. However, a benefit of securing an installment loan is that it can help build your credit, which is practical if you have little credit history. An installment loan usually takes longer to pay off than a car title loan, although it is still considered a short-term loan.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding California title loans.
Can I qualify for a title loan with bad credit?
Yes! You can qualify for a title loan even with bad credit.
Can I get a title loan completely online with no credit check and no inspection?
Yes! You can apply for a title loan online without leaving the comfort of your home. The best part is that no credit checks are required. However, your vehicle must pass an inspection to ensure it is safe to drive and to determine the amount you can borrow.
Will I receive the funds from my title loan instantly?
Usually, you will receive your loan the same day you apply if you complete the process before 2 p.m. EST.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in many cities in California, including:
- Anaheim
- Bakersfield
- Chula Vista
- Concord
- Corona
- Elk Grove
- Escondido
- Fontana
- Fremont
- Fresno
- Fullerton
- Garden Grove
- Glendale
- Hayward
- Huntington Beach
- Irvine
- Lancaster
- Long Beach
- Los Angeles
- Modesto
- Moreno Valley
- Oakland
- Oceanside
- Ontario
- Orange
- Oxnard
- Palmdale
- Pasadena
- Pomona
- Rancho Cucamonga
- Riverside
- Roseville
- Sacramento
- Salinas
- San Bernardino
- San Diego
- San Francisco
- San Jose
- Santa Ana
- Santa Clara
- Santa Clarita
- Santa Rosa
- Simi Valley
- Stockton
- Sunnyvale
- Thousand Oaks
- Torrance
- Victorville
- Visalia
