How Do Title Loans Work in California?

If you live in California you can often find yourself facing a financial burden.  Whether it be paying the rent, a mortgage that is past due, expensive medical bills or health care expenses, or tuition expenses.  If you find yourself in a tricky financial situation getting a loan from a traditional financial situation like a bank isn’t always easy.  Most of the time you have to have good credit–and there is a lot of paperwork to fill out.  If you have ever thought “How do car title loans work in California? Then you will get your answer by reading this article.

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Title loans, also called pink slip loans, vehicle collateral, or auto collateral loans can be one such solution to a cash crunch. You can get money without having to sell assets or deplete your emergency fund.

Any equity you have in your current car, pickup truck, SUV, or other type of vehicle is used to determine if you qualify for a loan and how much money you will be able to borrow.  In California you can get pre-approved in 20 minutes or less at times.

If you are looking to get a vehicle title loan in California here are several important things to understand that will help you know “How title loans work in California”

When going for a car title loan there are certain factors to consider, here are 9 things to know that will help answer the question: “How do title loans work in California?”

1. Getting a loan might be faster and more simple than you think:

By far when it comes to getting a title loan the more important things is that you have to have a vehicle that has enough equity in it to qualify for the loan.  Whether it be a motorcycle, RV, SUV, or truck–the minimum loan amount determined by state law in California is $2,500 or higher.  This is determined by the department of business oversight in California.

2. If you have poor credit you still can get a loan!

In most cases, since the loan is determined by the equity in your vehicle, bad credit shouldn’t impact your application.  They have been designed for people who have a bad credit history, or late payments, or unpaid bills

3. You do not have to high a high income

The minimum amount of income to qualify for a car title loan in California is $1,200.  The higher your income (and as long as you have equity) you have a great chance of getting approved.  You also cannot be a debtor in a current bankruptcy or intend to file bankruptcy itself after getting the loan.

4. Your automobile works as collateral for your title loan.

If you feel like a car title loan is right for you, then your vehicle will be put up as collateral.  What this means is that the title loan lender will place a lien on your vehicle’s title, and you will temporarily give the hard copy of the title to the lender–and in return they will give you a loan in an amount you agree upon ahead of time.  This protects the lender–when you use your vehicle as collateral–and without using this as collateral it is very hard to get a short-term loan.

5. You can get a lot of money depending on your needs.

When determining how much money you can get it comes down to how much money your car is worth and how much equity it has in it.  If you don’t owe your vehicle free and clear, yes, you can get a title loan, but this title loan would pay off your current loan and your interest rate would be higher.  There are several low vehicle value programs, but in most cases the vehicle needs to be worth at least $4,000 or more unless it qualifies for a low vehicle value program.  There are some ways to increase the value of your vehicle, but the value of the vehicle will be based off of the Kelly Blue Book or a similar program.  Furthermore, the maximum amount of cash you can get in California can go as high as $25,000 and sometimes, depending on the situation, even as high as $50,000.

6. Your interest rate will probably be higher than a normal car loan.

One thing to understand is that when you get a car title loan the interest rate will be higher than a traditional loan.  Why?  Lender’s charge high amounts of interest because the risk involved with people who have poor credit history.  Furthermore, the lender risks the possible event where people run away with the car, default, and can find it difficult to repossess the car.  The faster you pay off your loan, the sooner you can be out of debt on this loan and the less overall money you will pay.

Watch Part 2 of This Video and continue to read more information below:


7. You get to keep possession of your vehicle and you can continue to drive it.

In California, when you get an auto title loan you aren’t selling your car or giving or transferring your vehicle away to a lender or bank.  You get to keep driving your car during the length of the loan, as long as you continue to make payments on time.  So, one huge benefit is that you can still get to work and drive around.

8. There is risk when getting a car title loan, but don’t panic if you run into trouble paying on time.

There is risk in anything you do, and a title loan does have risk.  If you are unable to pay off your loan you can lose your vehicle to the lender, or suffer penalties and fees.  If you run into problems, though, communicate effectively with the lender and try to work out a solution as quickly as possible and get caught up.  Be proactive and don’t ignore calls or communication from the lender.  The more open and the better you communicate with the lender, the more likely the lender is to work out something.  Ignoring the situation usually only makes it worse.  We recommend having a plan in place ahead of time to make sure you have a plan to pay off your loan before you even get it.

9. Once you pay off your loan you get your automobile back.

After you pay off the total loan amount on your pink slip loan, the lender will remove the lien is put on your vehicle and you can get your title back.  This process is pretty simple and you should look for it in your paperwork of the agreement you have with your title loan lender.  Once you get your title back from the lender, you have to submit this paperwork to the appropriate government agency to get your title.  The DMV will issue you a new title identifying you as the sole owner of the automobile.

If you still have questions regarding, “How do title loans work in California?” do not hesitate to give us a call.  We’re here to answer your questions.  You can also fill out the application form on the website for more information.  Call us today at TOLL FREE at 844-254-7170.  If you live in Los Angeles, and need a loan click here for more information.

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What Our Customers Are Saying

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Dan Hernandez

I was really surprised at the amount of money I received from my loan on my truck’s title! The process here is really painless and I was approved in about 5 minutes and was able to pick up the money the same day.

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Tamika Bennett

I had to pay my property taxes and couldn’t get a personal loan from the bank, so I found Family Title Loans online and they were abble to get me approved fast for a car title loan on my Toyota Camry. Thanks Family Title Loans!

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Arin Riley

My friends had told me aboutFamily Title Loans services and when I was short on cash I thought I would give it a chance. I was glad I did as one of their licensed vendors got me the money I need the same day!

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