How do car equity loans work in California?

Secured Loans and Unsecured Loans:  What is the difference?

If you need to borrow money instantly you 2 options.  You can get a secured loan, or an unsecured loan.  Both types of have advantages and disadvantages to you the borrower and the lender.  Let’s examine the benefits and downside of each type:

An unsecured loan will generally have a much higher interest rate than a secured loan because the lender is loaning you money by just your reputation and credit score.  So, you can walk away from the loan and the lender has no physical or tangible property as collateral.  To combat not having collateral in addition to charging huge interest rates the loans they offer are smaller, and if you have a poor credit history the chances of getting an unsecured loan are extremely small.  Why?  Because your past behavior shows you are not a reliable payer of a loan.


So what is the option then?  A secured loan, such as a car title loan is one option for people who have bad credit.

How do they work – Bad Credit Cash Loans  

At Family Title Loans if you need to get a loan having a bad credit score or poor credit history generally isn’t a problem.  This is because your vehicle is used as collateral to get the money you need.  That is why these are sometimes called “bad credit cash loans.”  Title loans also go by pink slip loans, vehicle collateral loans, auto title loans, and a few other names–like car equity loans.  Getting a loan is not a super difficult process.  There is no traditional bank or traditional interview at a financing institution.  Your credit score does not play a huge part in the decision making process.

Why Can a Car Equity Loan Be An Option for You?

A car equity loan is a secured loan that is based off the value and the equity in your car, pickup truck, or SUV.  Depending on the vehicle you may be able to borrow $50,000.  But the minimum loan amount is $2,510 set by the state of California state law.  The other benefit is that you can get the money in a day or 2–sometimes even faster.  Auto title loans are secured loans because the vehicle and the equity in the vehicle is used as a collateral for the lender.  They are therefore safer for the lender and the interest is generally lower than an unsecured loan.  The main process of a car title loan can take place online as you can send in the other document to the lender so they can verify the make model, and mileage of your vehicle.  You’ll also have to provide identification, proof of full coverage insurance, have a free and clear title, and a vehicle with enough equity to qualify.

Auto Equity Loans are Fast!

Typically when you want to get a loan you have to fill out dozens of pieces of paper, the bank runs a lot of background or credit checks on you (your credit will likely be checked when getting a title loan) and furthermore you have to continue to wait and wait.  The process can take months or at least weeks sometimes…and that is if the bank or financial institution will bother to even lend you money.  With Family Title Loans you can call us up and in as little as 5-10 minutes find out how much you would pre-qualify for with your vehicle.  Just call us Toll Free at (844) 254-7170 or click on the application page here.

You Can Keep Driving Your Car While You Pay The Loan Back — This is A Great Benefit of Pink Slip Loans  

Furthermore, when you get a pink slip loan you get to keep driving your car.  Unlike a title pawn where the company holds possession of the vehicle, you get to have ownership of your vehicle.  The lender will be first on the title, however, and if you do not make payments you are subject to having your vehicle repossessed–however, this is true of any vehicle you have a loan on.

Car Equity Loan Reviews & Information

Make sure to do your homework and read reviews of the different companies that exist in the title loan industry.  Not all companies are created equally, and some companies have bad reputations.  Title loans are regulated by the California department of business oversight.

If you have any questions at all, do not hesitate to contact us TOLL FREE at (844) 254-7170 .


Learn more about California here.

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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