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Published Date: December 11, 2021
Alexandra Pencer, with a solid career in consumer finance dating back to 1994, is recognized as a trailblazer in the field of car title loans. Her vast knowledge and decades of hands-on experience equip her with the unique ability to assist individuals facing various financial dilemmas. As a renowned specialist in car title loans, Alexandra frequently shares her insights and knowledge through comprehensive writings on the subject.
The speed and ease of getting a loan using car title as collateral have gradually become popular. Making car title loans the most sought-after funding option in times of emergency needs.
A car title loan can be the means of escape for individuals in need of cash. Most know how car title loans work but what is a car title loan?
We have a large referral network of title loan companies, so we will be able to help you to get the best title loans, and all of our partners are in compliance with the CFPB.
Not everybody has gotten access to information about what a title loan is or how it works. If you have heard of car title loans or understand how car title loans work.
There are still some more things you should know about car title loans. Let’s learn more about how car title loans work …
Rather than drown in a financial crisis or outstanding debt, getting a low-interest loan is a better decision.
You must be equipped with the necessary details about car title loans and how they work. Know the requirements you need to qualify and apply for a car title loan online.
Are you are in a situation where you need a short term loan with a high loan amount?
Then a fast car title loan with Car Title Loans California is the way to go! We understand the needs of our car title loan customers. We know that living a good life while keeping a good credit score can be a struggle.
Therefore, we provide our clients with top-notch title loan programs! Your car and its pink slip is your ticket to getting an auto title loan. We are not so much concerned with the condition of your credit score, but the equity value of your vehicle …
Though your credit will be checked, it is not the most important factor for approval. Car title loans California has been helping people for over 20 years.
We are here to help you get the fast emergency money that you need. When you apply for a car title loan with us, you will get the highest possible loan amount.
One with the best interest rate and no prepayment penalties or hidden fees! As you read through, this article also answers the most common questions people ask about auto equity loans.
A car title loan is also known as a pink slip loan, auto title loan, auto equity loan, title pawn, etc. They are short-term, high-interest-rate loans that use the clear title or equity in your vehicle as collateral.
It is a form of credit, and the car title as collateral makes it a secured loan. The lender issuing the auto title loan collects the car owner’s title in exchange for the cash.
Car title loans have become popular in recent times because of how easy it is to get them. They cater to subprime borrowers.
When you compare this auto title loan process to that of traditional lenders like banks and credit unions, you see that they are much easier to qualify.
Unlike secured loans from conventional banks and credit organizations. Instead, you continue to maintain possession of your car. You maintain possession of your car as long as you stick to the terms and conditions of your car title loan agreement.
Once you receive your car title loan amount, the title lender places a lien on your car or vehicle. Then you sign the terms of agreement indicating the loan repayment period.
Car title loans offer great deals, are more flexible than traditional bank loans! We can get you thousands of dollars of about $2,500 to $50,000!
Auto title loans short term loans, usually for 24 to 48 months with high-interest rates and a triple-digit annual percentage rates (APR).
This is because car title loans are designed for people with poor credit scores. Therefore, interest rates are much higher than standard bank interest rates or credit union interest rates.
A typical car title loan could have monthly interest rate. On the other hand, the annual percentage rate for that loan might be higher than traditional loans.
The cash advance you qualify for depends on the value of your car. The higher the equity value of your car, the higher the loan amount you may receive. This is how a car title loan works!
A title loan representative will then appraise your car according to the Kelley Blue Book, evaluating the worth of the car to determine the resale value.
The result of the appraisal will determine the maximum amount of money you can borrow. Car title loans often are for an amount of cash that is about 25% to 85% of the value of the car.
On average, depending on your state of residence and car’s resale value, you can get between $2,500 to $50,000. As long as you are the owner of the car, you are assured that you can get a car title cash advance for yourself.
Laws from one state to another. Not all states allow title loans. As of August 2012, about 22 states in the US did not permit auto title lending.
Only 8 states allowed it, but at lower rates. 16 states allowed auto title lending with three-digit APR, and 4 states permitted auto title lending through a loophole in the law.
According to a report by the New York Times, many US citizens borrow auto title loans yearly.
In 2011, the California Finance Lenders Law established legislation that permits licensed companies and organizations to give short-term loans secured pink slips. Find out more at https://titlelo.com/learn/title-loan-laws/
Before you sign any title loan document, the car title loan lender must give you the terms of the agreement. They must ensure that you understand every detail in the auto title loan contract.
The federal Truth in Lending Act treats car title loans like other funding options. That is, lenders must disclose the cost of the loan to borrowers.
Loan processing fees, paperwork fees, late fees, loan origination fees, title charges, lien fees, etc. must be clearly stated. As well as the annual percentage rate (APR), interest rate, etc.
You will be asked to present proof of income, proof of residence, photos of your car, and personal references. Your lender may also need to contact your insurance agent.
A car or vehicle inspection may reveal a higher value, hence, qualifying you for more cash! We will assess the equity value of your vehicle.
Then we let you borrow a certain percentage of the overall value! This percentage is calculated by an auto title loan calculator. There are no prepayment penalties or hidden fees!
The loan repayment period is usually short. And, contrary to popular belief, you can still drive your car while you pay off the loan! You get your car title back when you pay the title loan in full …
Although auto title loans are short-term loans, you can negotiate the loan repayment schedule with your lender. Some car title loan lenders may offer you an extended loan payment plan.
We work with you to pay off the loan in time by making larger payments each month!
Some lenders may allow you to make payments for a longer period. It is up to you to decide which payment option is best. Either you pay directly to the title loan office in person, or through an online system by direct deposit.
You could also choose to subscribe to an automated payment system. We work to reach a payment plan and payment option for your convenience.
Therefore, your title loan doesn’t put you under undue pressure. This is why we stand out as the best title loan company in California!
You will be allowed to roll over the loan amount if you cannot pay it off within the stipulated time.
But remember! Each time you roll over your loan, you do so at a higher interest rate!
For example, if you take a loan for $1,000 to pay back $1,250 at the end of the loan period but you only managed to pay $250. The remaining amount will be rolled over to a new loan …
This will attract a much higher interest rate to cover the high risk undertaken by the auto title loan agency. Leaving you in the debt cycle, and even at the risk of losing your car through repossession.
Car Title Loans California will work with you all the way. We permit rollovers, and we also ensure you are well assisted and supported to meet up with your payments. We even offer car title loan buyouts!
When a borrower fails to follow through on the agreed-upon terms and conditions, it is called loan default. When someone defaults on a loan, an auto title loan agency may attempt to restructure a payment plan.
Together, you and your lender can work to avoid car repossession. When someone defaults on their loan, they run the risk of having their car repossessed.
The car title loan lender may decide to contact the borrower or they might immediately repossess the car. Some laws govern repossession. Nevertheless, the lender is legally permitted to auction your car to recover the loan amount.
You apply for a car title loan over the phone, online, or in person. After you submit your loan application, we will offer you a loan amount suited to the equity value of your vehicle.
We will then proceed with a credit check using Experian. We will also have to verify your monthly income.