A Beginner's Guide to California Auto Title Loans

You need to make an urgent payment but you don't have the entire amount with you. There's no way to get a loan that quickly and you don't want to ask family or friends to give you the money. So what do you do? Well, if you live in California and own a car, you can try California auto title loans.

What are California auto title loans?

California auto title loans are emergency loans you can avail of from a loan agent licensed in the state of California. As a borrower, you can use your own vehicle as collateral.

According to the California Department of Financial Institutions, auto title loans are only meant for consumers who require short-term loans, usually lasting from 15 days to 3 months. The maximum loan amount varies between lenders but is never greater than 80% of the value of your vehicle.

How do I apply for an auto title loan?

California auto title loans are easy to apply for. You can walk into the lender's office directly or apply for a loan online. When you apply for a loan, the only documentation you need to submit is a copy of your vehicle title and vehicle insurance papers, in addition to proof of ID. The lender checks your details, and if satisfied, approves the loan at once.

What is the advantage of an auto title loan?

Convenience is the primary advantage of California auto title loans. Lenders approve loans within a matter of few hours if the applicant's documentation checks out. The money is immediately transferred to your account or you can get it in the form of a cashier's check.

Another advantage is time. Since these are short-term loans, you don't have to struggle with complicated calculations involving monthly installments. In addition, most lenders will still consider you for a loan even if you have bad credit history.

Alisha Delphi holds a degree in Economics and Commerce from USC. She started out as a financial advisor with a bank and has moved on to become a loan consultant with more than ten years of experience. Her key areas are auto title loans, auto pawn and fast cash loans.