Learn the Laws Around Auto Title Loans Before Inquiring About Money!

If you’re a California resident with a less than perfect credit score, you know how challenging it can be to apply for conventional loans. Maybe you’re struggling to pay bills with the rise of inflation, or you’ve had to declare bankruptcy in the past. Whatever the reason causing your low score, finding ways to borrow money when an unexpected crisis pops up can feel impossible!

Although you may think there is no hope, you may have an option available! You can inquire about a ChoiceCash title loan serviced by LoanMart to potentially receive access to funding within the same business day as inquiring.1 With an easy and flexible online process, you have a chance to get money when you need it most.1 You can get started now by filling out this inquiry form or calling 855-914-2945.

While car title loans can be an option for people with bad credit who need money quickly, it’s also essential to learn about the California title loan laws that protect consumers from predatory lending practices. Repossession laws in the Golden State aren’t that different from other areas of the country, but they are crucial to know about as a potential borrower. 

How Do Title Loans Work in California?

Before you can learn about auto title loan laws in California, you should first understand the basics of how they work. Car title loans work by allowing borrowers to use their car’s title as collateral in exchange for funding. A lien is placed on the title during the repayment period, but it is removed once the loan is paid in full. Auto title loans are considered secured loans because a physical asset is used as a form of insurance if the borrower fails to keep up with their monthly payments. 

An unsecured loan is a type of loan that is most commonly found in banks and credit unions. They’re considered unsecured because there’s no physical collateral used to secure the funding. Instead, the lender will look at a person’s credit history to determine eligibility for funding. People with bad credit scores may not receive approval. If traditional loan lenders approve them, they may implement loan terms with high-interest rates and fees. 

Credit scores are still considered with a car title loan but are not the main focus during approval. Instead, title loan lenders care more about:

  1. How Much Value Your Car Has
  2. If You Have a Steady Income

Your car’s value can essentially determine whether or not you get approved and the loan amount you may obtain! Additionally, showing evidence of a steady income proves to title loan lenders that you will be capable of repaying the funds. 

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What Are the Auto Title Loan Laws in California?

The California title loan laws protect consumers from predatory lending practices. If you enter into a title loan agreement and miss a payment, you risk repossession of your vehicle by the lender. 

If an online title loan lender decides to take a person’s car, there are rules they need to follow. First, title loan lenders in California must notify a borrower at least 48 hours before they will repossess the vehicle so the proper arrangements can be made. They also must tell you where your car is going and how you can potentially get it back.

Repossession of the Vehicle

They also must allow 60 days before the agency can sell or discard the vehicle, giving the borrower plenty of time to catch up on what is owed and to get the car back. 

Title loan lenders are allowed to repossess a vehicle in California after one missed payment, so it’s important to be aware of this as a borrower. The good news is that repossession is typically the last resort. Instead, lenders will try to work with the consumers to find an alternative solution if possible.

If a California title loan lender happens to sell your vehicle for more money than they loaned, they must give you the extra money within 45 days after the sale. You may also need to pay the difference if they sell it for less. This fairly straightforward deal is good for the borrower to know about ahead of time!

You can read more about California title loan laws and how the deal works by visiting the California legislature website.

What Are the Requirements for a Title Loan in California? 

Now that you know the risks and the California law surrounding a title loan agreement, the next step is learning about the requirements before getting started. While ChoiceCash auto title loans serviced by LoanMart have a quick and easy inquiry process1, you need to meet a few initial requirements to qualify!1 You must:

  1. Be at Least 18 Years Old
  2. Have a Qualifying Vehicle and Title in Your Name
  3. Show Proof of a Steady Income

You must be an adult when inquiring about car title loans in California. While some financing agreements allow minors to apply, title loans are not one of them! Additionally, you must have a legal car title under your name. 

A car title loan depends on using a borrower’s vehicle as collateral for funding by placing a lienholder on the title. Without a legal car title under your name, you cannot inquire about this financing. 

Will My Income Qualify for a Car Title Loan?

You must also show proof of a steady income. Having income shows title loan lenders that you will be capable of paying back the loan! The good news is that you don’t need to work a traditional 9-5 job to potentially qualify– there are many alternative forms of income that may be accepted during approval! Some examples include:

  • Worker’s Compensation
  • Social Security Benefits/Disability Income
  • Retirement Income
  • Pension Income
  • Alimony/Child Support Payments
  • Settlement Income
  • Self-Employment

If you’re curious about your income circumstances, contact a ChoiceCash title loan representative by calling 855-914-2945 today!1

What Documents Will I Need for a Title Loan in California?

The documents required for an auto title loan in California are relatively straightforward! Unlike traditional loans, which can be difficult to apply for, car title loans are simple and straightforward! You will need:

Government-Issued Photo I.D. or California-Issued I.D.:

You must be 18 years or older to inquire about a ChoiceCash title loan serviced by LoanMart in California.1 You can prove your age and identity by showing a driver’s license or a passport! 

Proof of Residency in California:

You must prove that you live in California or other states where ChoiceCash car title loans serviced by LoanMart are available!1 You can do this by using a piece of recent, official mail, like a utility bill or a bank statement.

Proof of Income:

As mentioned earlier, providing proof of income is essential during the title loan inquiry process because it shows lenders that you will be capable of making the monthly payment on time. Many alternative forms of income are accepted outside of working a traditional 9-5 position! 

Legal Car Title Under Your Name:

Approval for a car title loan depends entirely on using a borrower’s car title as collateral for funding. You cannot move forward with this agreement without a legal car title in your name. 

However, there are exceptions. If you are currently financing your vehicle, you may still be able to qualify for a car title loan if your income and vehicle meet the right criteria.1

Recent Photos of the Car:

You may be asked to provide recent photos of your vehicle. California title loan lenders may want to gauge your vehicle’s condition before approving you for funding! Instead of having to go in person for an inspection, you can conveniently send photos online when you inquire about a ChoiceCash title loan serviced by LoanMart. 

What Are the Benefits of Choosing a Title Loan in California?

While risks come with entering into a title loan agreement, there are plenty of advantages! Below are some benefits you can expect from choosing a ChoiceCash title loan serviced by LoanMart in California!1

Flexible Loan Terms1:

Through ChoiceCash title loans serviced by LoanMart, qualified borrowers can access a convenient approval process and flexible loan terms.1 People can use a variety of alternative income proof during the inquiry process and may have the opportunity to refinance their loan if they’re struggling to make a payment. 

Bad Credit is Not Always an Issue1:

Unlike unsecured loans, you don’t need perfect credit to inquire about a ChoiceCash title loan serviced by LoanMart.1 People from various financial backgrounds are welcome to inquire because approval depends less on your credit history, although that is still considered.1 Instead, it is more focused on how much value is in your car and your income! 1

Online Process:

Finding a location in your area that services auto title loans and waiting to speak with an agent is time-consuming and inconvenient. One of the most significant advantages to choosing a ChoiceCash title loan serviced by LoanMart is that you can complete the inquiry process online !1 It’s a quick and simple option to choose when you need to inquire about money quickly.1 

Keep Driving Your Vehicle:

With a ChoiceCash title loan serviced by LoanMart, qualified borrowers can keep driving their cars during the entire repayment period!1 As long as you make the payments on time, you won’t have to worry about losing access to your transportation. 

Competitive Interest Rates1:

It’s no surprise that traditional institutions will offer loans with high-interest rates or a deal that is more trouble than it is worth. With a ChoiceCash title loan serviced by LoanMart, qualified borrowers may receive a loan with a competitive interest rate and flexible terms!1 

How Much Cash Can I Get From a Title Loan in California?

If you’re interested in a ChoiceCash title loan serviced by LoanMart, you are probably wondering how much cash you can get from this type of agreement. The answer depends on several factors but is mainly related to how much equity is in your car and how much income you make. 1

You can determine your car’s equity by taking the vehicle’s overall market value and subtracting how much is owed. If you want help finding an estimation, you can use this helpful calculator tool that is available to ChoiceCash title loan borrowers!

Additionally, you can head to Kelley Blue Book to estimate what your vehicle may be worth overall. 

How Is Car Value Calculated in California?

Car valuation is calculated by looking at different aspects of your vehicle and how well it has been maintained. When determining loan amounts for applicants, title loan lenders will consider these factors of a car, so it’s important to keep them in mind:

  • Make, Model, Year Car was Manufactured
  • Mileage on the Odometer
  • Style
  • Overall Condition
  • Modifications and Upgrades

The make, model, and year your car was manufactured are important when deciding value. Some vehicles remain in high demand over the years because of their consistent popularity, despite being older models! 

The number of miles your car has can indicate its condition. Vehicles with over 100,000 miles on the odometer may have endured more wear and tear than others driven less frequently. As long as your vehicle has been driven an average amount and is still in good condition, the value should be fine!

The overall condition of your vehicle means its current shape and how well it runs. This can include internal conditions, like the engine or transmission, and external conditions, such as scratches or dents. If you maintain it regularly and fix minor issues over the years, your car should retain its value for quite a while!

Finally, modifications and upgrades can impact how much your car is worth. Some enhancements can increase value, like replacing tires or installing new windshield wipers, but some changes can negatively impact it. Some examples include making your exhaust louder or adding alloy rims! 

How Can I Receive My Title Loan Funds and How Can I Pay Them Back?

If you meet the requirements for a ChoiceCash title loan serviced by LoanMart and have passed the approval process1, you are probably wondering how to get the funding. The good news is that you have many options as a qualified borrower for getting your money! You can:

  • Have the Funding Direct Deposited Into Your Account
  • Receive a Check in the Mail
  • Head to a Participating Money Transfer Location for an In Person Pick Up

Paying the funds back as a qualified borrower is similar to the options above. You can:

  • Set up Automatic Transfers From Your Account
  • Send a Check in the Mail
  • Pay Back Your Funds at a Participating Money Transfer Location

Setting up automatic account transfers is a great way to ensure you never miss a loan payment! Additionally, you have options to go in person or send checks in the mail if you prefer. 

Inquire About Title Loan Funding in California Today

Knowing the state laws about car title loans in California can help you avoid a bad situation down the road, like getting your car repossessed or entering bankruptcy if you can’t pay your debts back. The great thing about California title loan laws is that they protect borrowers from predatory creditors or companies and ensure California residents are safe from harmful practices. 

As long as you abide by the payment plan, you won’t have to worry about car repossession in California during a title loan agreement. If you miss payments, title loan lenders are responsible for giving you a warning 48 hours before taking the car and allowing 60 days to potentially repurchase the vehicle. 

Inquiring about a ChoiceCash title loan serviced by LoanMart could be an excellent financing option for someone with a bad credit history!1 You can complete the approval process online and may even get approved within the same business day as starting your inquiry.1 Find out if your income and vehicle can qualify by filling out this inquiry form or calling 855-914-2945 today!