Sometimes there are times in life when financial emergencies strike. It’s times like these where considering a pink slip loan in Los Angeles may make sense to pay for these unexpected bill. Whether that bill is a car repair, needing to pay a mortgage, rent that is due, medical bills, tuition bills, or something else you can get a pink slip loan very quickly if certain conditions are met.
First, let’s explain how a pink slip loan–also known as a car title loan in California works. Lenders must be regulated by the department of business oversight in California. Also, you must understand that for a lender to be able to lend you money, or willing, you must have enough equity in your car to get a auto title loan. In California, due to the department of business oversight, the lowest loan amount you can get is $2,500. So, therefore a lender will probably require at least $4,000 or more of equity in your vehicle for you to qualify for a loan. Why do you have to have more equity than the loan you want to get? To put it simply, the lender is taking a risk by lending you the money, and the lender wants to take the least financial risk possible. So, the lender will use a tool like the Kelly Blue Book to determine how much your car can be re-sold for if you default on the loan. That means you do risk losing your vehicle if you do you not pay your monthly payments on your pink slip loan.
To get into the details of how a pink slip loan works let’s go over the following requirements or things that a lender will want to see before they give you a loan:
- Identification – like a driver’s license to prove who you are
- Possession of the vehicle’s title
- Is the title you have a salvage title or a clean title?
- Full coverage insurance on your vehicle – not just liability
- A vehicle that has under 200,000 miles on it–unless it is a diesel truck–then it may still qualify
- Personal and professional references
- Pictures of the vehicle
- Proof of the mileage
- The vehicle, unless you are going to refinance your existing loan into a title loan, must be paid off.
These are the basic criteria if you are looking to get a loan quickly.
How quickly can you get a loan?
It really comes down to if your vehicle qualifies for a loan and how quickly you get the lender the paperwork they need to make a decision. In some cases loans have funded the same day if the lender can get the required paperwork very quickly. However, in most cases it is reasonable to expect 1 to 3 business days. This is much faster than traditional bank financing.
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