California Title Loan Laws
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Navigating title loan laws in the state of California can be intimidating, but it doesn’t have to be when you’re armed with solid and actionable information. Don’t let the jargon scare you, getting a title loan in California can be easier than it sounds. Here’s what you need to know to make the most out of the process and give yourself the best chances of getting the financing you need.
Key Questions About California Title Loan Laws
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Reading time: 3 min 49 sec
1: Are Title Loans Legal in California?
2: What Are Title Loans and How can Title Loan Laws Affect You?
3: Find the Best Lender for the Best Terms
4: Get the Best Deal on Your Title Loan with Montana Capital Car Title Loans
Are Title Loans Legal in California?
Many of you may be wondering if title loans are legal in California. The short answer is yes, but there are some important stipulations to know.
The state of California has laws that can be generous for those who have run out of options with conventional financing avenues. Qualifying for a title loan in California is typically quite easy as the state’s laws are very accommodating.
Title loans can benefit you in all sorts of ways and help you get through hard times. One of the greatest things about title loans are that they have very loose restrictions on what you can use the borrowed money for. Whether you need the money to pay off another debt, medical expenses, help out a family member, or just splurge on something for yourself, no one will stop you from doing what you want with it.
Perhaps the greatest advantage of title loans is that as a borrower, you won’t necessarily be restricted by having no credit, poor credit, or even having filed for bankruptcy. None of these things should hold you back when seeking financing through a title loan.
This is true because the money you borrow with a title loan is lent against the value of the vehicle you put up for collateral and your ability to pay back the loan.
What Are Title Loans and How can Title Loan Laws Affect You?
Title loans are relatively unconventional avenues for procuring financing. These loans are desirable after other more traditional financing options have run out for one reason or another. This makes title loans an important benefit for people who have had trouble acquiring financing in the past and can give them a break under the right terms.
California is a great state to live and drive in, especially when considering the rather liberal title loan laws that are particular to the state.
Make Your Payments to Avoid a Roll Over Loan
When you take out a title loan on your vehicle, it’s important to keep up with the payments. This not only pays off the balance of the loan, but it also avoids a potential roll over loan. Some creditors will decide to roll over the original title loan into a new one after too many missed payments. This will be more expensive for you in the end because various additional fees are often tagged onto the roll over loan.
How California Law on Title Loans Affects Repossession
In the event that the vehicle will need to be repossessed to make good on the loan, creditors in the state of California have certain liberties and restrictions. Most importantly, a lender or their representatives cannot enter secured property such as a garage without the homeowner or renter’s permission to repossess a vehicle. However, they can enter an unsecured property to repossess a car, such as when it’s parked in the driveway or on the lawn.
California law dictates that lenders are under no obligation to tell law enforcement about the repossession before it occurs. However, authorities must be notified after the repossession has taken place.
If a borrower has defaulted on a title loan, hiding the vehicle to avert repossession is a violation of California state law. While you can get your vehicle returned if you work with the lender on issuing another loan, this can only be done twice within one year over the duration of the contract.
Selling the Vehicle
After a vehicle has been repossessed, under California title loan laws, the lender must inform the borrower of their intent to sell the vehicle within 15 days via first-class or certified mail. Provisions like this help make it possible for the borrower to get affairs in order to renegotiate their loan before the vehicle is sold.
Find the Best Lender for the Best Terms
The best way to make sure you don’t suffer consequences when taking out a title loan is to find the best lender to work with. You want a company you can trust and count on to give you a fair deal with favorable terms. Finding the right lender is the single most important part of the title loan process.
Here are some key things to look for in a creditor.
- Reliability: Trust is the most important factor. Do your homework on lenders before taking out a title loan.
- Cost: Look for creditors that offer you the best deal, but don’t pile on expensive add-ons.
- Flexibility: You’ll want a creditor that’s flexible enough to work with you in a pinch.
Get the Best Deal on Your Title Loan with Montana Capital Car Title Loans
Make Montana Capital Car Title Loans your choice for seeking financing on a title loan and enjoy the best in service. Montana Capital Car Title Loans is one of the most trusted companies for title loans in the state of California.
One of the defining qualities of Montana Capital Car Title Loans is that they look out for their customers and do everything they can to provide financing for anyone who walks through their door. Make the right choice and partner with Montana Capital Car Title Loans for your title loan needs.
Speak with Montana Capital Car Title Loans today and get the best deal on a title loan. They’re the premier choice for title loans in California, let’s see how we can help each other.