Title Loans in California - Beat the Golden Coast Financial Crisis
Everyone faces emergency expenses at some point, and may require quick cash. If you have a bad credit history and are in a financial bind, you may wonder how you’ll get immediate funds.
In such financial circumstances, title loans in California may help. Our title loans in California offer a convenient way to access money quickly, sometimes on the same day you apply.
Let's check out this comprehensive guide on title loans in California.
In a Nutshell: Title loans in California help residents access cash quickly. You use your vehicle as collateral to secure the loan and can borrow up to 70% of your car’s value, with repayment terms of up to 48 months, all while continuing to drive your vehicle as normal.
If you own a qualifying vehicle such as a car, RV, powersport vehicle, or truck, this secured loan option allows financing for any financial situation, even with bad credit.
California has some unique laws regarding title loans, but they are a legal option to get the financing you need.
Let's check out this comprehensive guide on title loans in California.
California, known as "The Golden State," features a prominent depiction of a grizzly bear on its state flag.
Secure Up to $50,000 Today
Using your vehicle as collateral, you can secure up to $50,000 financing. The best part is you can keep and drive your vehicle while repaying the loan.
Our loan process is 100% online or over the phone, and we can fund loans quickly, helping California residents resolve financial emergencies quickly.
Online Title Loans in California No Store Visit Needed
California residents can get online title loans with no store visit required. The process is fast, secure, and available 24/7.
You can find out in minutes how much cash you may get with funding as soon as the next business day.
How It Works:
- Apply Online. Complete the short form to get pre approved.
- Upload Photos. Send clear images or a short video of your car.
- Verify Documents. Submit proof of income, title, and ID online.
- Get Approved and Funded. Receive your money and keep your car.
California Title Loan Laws & Our Title Loans Service
| California Title Loan Laws | MontanaCapital® Service | |
| Lender Licensing | Must be licensed under California Financing Law | Licensed and registered. Licensed No. 603F508. |
| Loan Amount Minimum | No state minimum. Rate caps vary by amount. | $2600 |
| Interest Rate (Under $10,000) | No limit | No hidden fees |
| Interest Rate (Over $10,000) | No state limit | 60% - 175% |
| Prepayment Penalty | Not allowed on loans $2,500-$10,000 | None |
| Repayment Terms | Up to 48 months | Up to 48 months |
At MontanaCapital, we can lend to borrowers with less-than-perfect credit, and our loans never have a prepayment penalty. We also offer excellent customer service, making your stressful time a little easier to handle.
- Title Loans in California - Beat the Golden Coast Financial Crisis
- Secure Up to $50,000 Today
- Online Title Loans in California No Store Visit Needed
- California Title Loan Laws & Our Title Loans Service
- Should I Apply for a Car Title Loan in California?
- Car Title Loans Are Secured Loans
- How Car Title Loans in California Work - A Brief Introduction
- California Title Loan Application Requirements
- How the CA Car Title Loan Process Works
- Tips for Borrowers
- Car Title Loan Alternatives
- Why Choose Us
- Advantages and Disadvantages of California Title Loans
- FAQs
- Title Loans in California - The Bottom Line
Should I Apply for a Car Title Loan in California?
Applying for a car title loan in California can be fast and convenient. While a credit check may be required, your credit score is not the main approval factor, which means borrowers with bad credit can still qualify.
Most applications can be completed online, with quick approval decisions and funding sometimes available as soon as the next business day. This makes car title loans an option for financial emergencies.
Car title loans are typically approved based on your income and your ability to repay the loan rather than your credit history. This is because the loan is secured by your vehicle.
Car Title Loans Are Secured Loans
Car title loans are secured loans, meaning your vehicle is used as collateral. The lender places a lien on your car title, but you can continue to drive and use your vehicle as usual. However, if you fail to repay the loan as agreed, your vehicle may be repossessed.
Because car title loans often have high interest rates and carry the risk of losing your car, they should generally be considered only for emergencies and only after other options, such as bank loans or personal loans, have been explored.
Most Important Factors for Title Loan Approval
To qualify for a car title loan in California, you must own a vehicle with positive equity. The value of your car must support the loan amount, which is typically between 25% - 50% of the vehicle’s value.
You must also show a reliable source of income to prove you can afford repayment. Income may come from employment, disability benefits, retirement income, or investment income.
These requirements help ensure the loan is affordable and reduce the risk of default and vehicle repossession.
If you are facing an emergency, cannot qualify for a traditional bank loan, and have enough equity in your vehicle, a California car title loan may be an option. Before applying, it is important to understand California title loan laws and repayment terms so you can make an informed decision.
How Car Title Loans in California Work - A Brief Introduction
Like title loans in other states, California title loans use your vehicle as collateral to secure the loan. You can use a car, truck, RV, or powersport vehicle.
The lender reviews your vehicle's market value. You may need to send clear photos or a short video. You also submit basic documents online, such as proof of income and your vehicle title.
Once approved, the lender presents your loan offer with the total cost and APR. After you accept, the loan can be funded within one business day. You receive your money and continue using your vehicle as normal.
Interest Rate Rules in California
Most title loans in California start at $2,500 or more. Smaller loans are allowed but uncommon because rate limits make them unprofitable for lenders.
For loans between $2,500 and $10,000, APR is capped at about 36% plus the federal rate. Expect to pay around $400 per year for every $1,000 borrowed.
Loans over $10,000 have no state rate limit. On these larger loans, expect $600 to $1,000 or more per year for every $1,000 borrowed.
Before You Sign Your Title Loan Agreement
Ask the lender for the total loan cost in writing. Make sure the monthly payment fits your budget. Title loans can help in emergencies, but they are expensive. Missing payments can lead to losing your vehicle.
California Title Loan Application Requirements
The title loan in California requirements are simple because they require collateral which your vehicle. When a lender has collateral, they have something to fall back on if the borrower doesn’t make the required payments.
Borrowers don't have to worry as much about their credit or employment history. Most title lenders look at this information but focus on the car's value and how well you can afford the loan repayment.
California Title Loan Requirements Also Include:
- Proof of car insurance
- Proof of California residency
- Enough equity in your vehicle
- Lien-free title in your name
How the CA Car Title Loan Process Works
The California title loan process is simple. Just follow these four steps to get online title loans in California.
Complete the Pre-Approval Application
Shop around and research your title loan options. Ensure they are legit and offer the rates and terms that fit your needs and your budget.
After choosing a responsible lender, apply online. Applications will gather personal qualifying and vehicle questions.
Submit Documentation
Each lender has different requirements to get car collateral loans fast, but some of the most common documentation lenders require include the following:
- Lien-free vehicle title
- Government-issued ID
- Photos of your vehicle
- Proof of income sources
- Proof of residency
- Copy of vehicle registration
- Copy of vehicle insurance
You may also want to provide copies of your most recent bank statements, personal or professional character references, or proof of employment history and income to strengthen your application.
Review Pre-Approval Decision and Terms
After submitting your documentation, you'll receive a pre-approval decision stating whether your application has been accepted and the rates and terms being offered.
California law requires lenders to provide all details in writing before you make a decision. Review the terms carefully and ask any questions you have to ensure the loan is right for you.
If you decide to move forward with the loan, you may need to submit more documentation for final approval.
Accept, Sign, and Repay!
Once the lender reviews all documentation and approves your online application, you can accept the terms, sign your documentation, and receive your quick cash.
Tips for Borrowers
The cost of vehicle ownership can be high in California. If you're trying to keep your car costs down, a used car may help you save money, especially if you can pay cash for it. As long as your car is paid off, lien-free, and you meet the other qualifying criteria, it may be eligible for a car title loan.
Once you own your car lien-free, here are some tips to get the best title loans in California.
- Ensure the lender is registered with California's DFPI
- Never apply for more money than you need
- Beware of title loans' high-interest rates
- Exhaust all alternatives before borrowing money
- Only use title loans in California in an emergency
Contact us for more info or Apply Online
Car Title Loan Alternatives
Even in a dire financial situation, title loans in CA aren't the only option you have. They offer access to quick cash, but it may come at a price. Here are a few other alternatives to consider first.
- Friend or Family Loan - Friends or family may be able to help you through your financial emergency. If you need funds fast but know you can repay the loan quickly, consider asking people you trust for help.
- Personal Loan - A personal loan is unsecured. This means there is no collateral. However, because personal loans come from banks and other financial institutions, they have a more extensive underwriting process, so it often takes longer to get your funds.
- Home Equity Loan - A home equity loan borrows money from your home's equity. Like online car title loans, you put up collateral that you risk if you cannot make your payments. Home equity loans may have lower interest rates but a much longer and more in-depth underwriting process.
Why Choose Us
We has helped qualified California residents secure title loans since 2007. We have many branches across the United States and offer car title loans that meet California title loan laws. We also offer the option to secure title loans completely online, funding as soon as the next business day in some cases.
Example - Bad Credit Applicants are Welcome!
Good credit isn't a requirement to qualify with us. Plus, you get to keep your vehicle and use it as usual. You can apply online or call 1-800-700-8900 and speak to a qualified agent to get pre-approved.
Example - How Much Cash Can I Get?
We offers emergency car title loans ranging from $500 to $50,000 or up to 70% of your car's value. The APRs vary based on the loan amount, but loans over $10,000 can have APRs ranging from 60% - 175%.
Example - How Fast Will I Get the Money?
Sometimes title loans can be funded the same day if the right conditions are met! For example, if you apply, sign your title loan agreement, and have all of your documentation approved by 2:00 pm your lender's time, you may have your funds in as little as 5 hours. However, if you don't meet that timeframe, we typically pays out funds within 1 business day.
Example - Refinance an Existing Title Loan
You may also refinance an existing title loan from another lender. This is often a good option for borrowers with loans with much higher interest rates or less attractive terms than we may provide.
Example - Early Loan Payment
We allow borrowers to pay back their loan early without any prepayment penalties. This can save a significant amount of money in interest over the lifetime of the loan.
For example, a borrower’s loan agreement states that they have a term of 36 months to repay their loan. However, shortly after receiving the title loan, the borrower got a significant raise at work. Because of this increase in income, the borrower was able to increase how much they were paying each month and was pay off the loan a few months early saving a lot of money on interest. When your loan doesn't have a prepayment penalty, like the loans we offer, you can save a significant amount of money.
Advantages and Disadvantages of California Title Loans
Getting a CA car title loan has its advantages and disadvantages. It's essential to consider the pros and cons to decide whether a quick title loan is suitable.
Car Title Loan Advantages
- You can get quick cash using car title loans online in California
- Credit is considered but not a primary determining factor
- You can keep using your car even with California title loans
Car Title Loan Disadvantages
- Auto title loans for more than $10,000 could have high-interest rates in California
- Title lenders can repossess the car in CA if you don't make your monthly payments
FAQs
Are Title Loan Interest Rates Considered High in California?
Title loans are considered high-interest rate loans. However, due to the Fair Access to Credit Act, interest rates on car title loans in California are on the lower end, 36%, for loans under $10,000.
How Much Money Can I Get With a Title Loan in California?
The state minimum loan amount allowed for California title loans is $2,510. However, Montana Capital has a minimum loan amount requirement of $500 and will lend up to 70% of the car's value.
How Quickly Could I Receive My Funds in California?
You may receive funds from fast title loans in California in as few as 5 hours after final approval if completed and approved by 2:00pm your lender’s time. While your initial approval is pre-approval, final approval comes when all documentation is received and reviewed.
Can I Keep My Car While Repaying a Title Loan in California?
Yes! When securing auto title loans online in California, you keep your car and use it as usual. The only restriction is you can't sell the car when you are still paying on the loan.
What’s Considered Proof of Income for a Title Loan in California?
Proof of income doesn't have to only be from employment. You may have income sources, such as:
- Pay from employment
- Disability income
- Retirement income
- Investment income
- Social Security income
Can I Get an Online Title Loan With Bad Credit?
Yes! At Montana Capital, we offer online car title loans for bad credit. Approval relies less on your credit score and more on your car’s value and ability to repay, making them suitable for borrowers with bad credit.
Is a Loan Impound Disclosure and Waiver Required for a Title Loan in California?
Yes, the state of California requires title loan borrowers to sign an Impound Disclosure and Escrow Waiver to protect lenders. You can do this online easily by clicking on ‘Get Form.’
If a lender wants to require an Impound account, an account that sets aside money to pay your car insurance and taxes, you must sign an impound disclosure or notice. If the lender waives the impound requirement, you must sign an Escrow Waiver, a document that clearly states the consequences of not meeting the requirements, such as paying your insurance.
What Happens if I Can't Make My Payments?
Auto title loan companies can repossess your vehicle if you do not make your payments. That is never the goal for lenders or borrowers, so if you cannot make your payments, get in touch with your lender immediately to work out a different arrangement.
Can My Vehicle Be Repossessed in California?
Yes, your car can be repossessed in California, according to the law. The company that repossesses your car must contact you within 48 hours to tell you where any belongings found in the car are located. They may charge a fee to store the items.
In addition, the car title lender must inform you where the car is and what you can do to get it back. This usually includes paying all past due amounts late and repossession fees.
Title Loans in California - The Bottom Line
Living in California comes with some high expenses, from the average cost of living to its 7.25% sales tax. If you are struggling, a title loan may be able to help.
Before jumping into the process, consider all aspects of a title loan. First, you must understand California’s laws on title loans, including consequences of not meeting the terms of your loan agreement. Next, research all of your options since title loans often come with high interest rates and should only be used in emergencies. Finally, don't hesitate to consult a financial professional before deciding on financing.
Our simple application process can provide a pre-approval decision within a few minutes. If approved, you can receive your funds in as few as 5 hours to one business day. Apply here today to get a free quote and see how much money you can get!
Written by
Samantha Hawrylack
Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.
