If you need money quickly a car title loan is one way to get funds quickly. People use them for emergency situations like medical bills, funeral expenses, car repairs, home repairs, and many other urgent situations like tuition or other issues. A common question that people want to know is this:
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First, in the state of California auto title loans are regulated by the state government and specifically the department of business oversight in California. Let’s also explain how a car title loan works so you understand that first and foremost. Keep in mind, every state is different. In California, the minimum loan amount set by the department of business oversight is $2,500. So companies can only lend a minimum of that amount. Most companies, to be on the safe side, will loan MORE than $2,500. They will loan $2,600 or more.
So, first and foremost the lowest amount you can borrow when getting a car title loan in California is $2,500 or above. Secondly, you must have an income of at least $1,200. That doesn’t mean you have to have a job. You can get a vehicle collateral loan without a job in California. But, you have to have verifiable income of at least $1,200 a month. That is step 2.
Step 3 is going to depend on your vehicle. When a car title loan lender in California is going to lend you money you must understand that this is an investment on their part. They want to make money and therefore will be charging you interest on your car, pickup truck, sports utility vehicle, boat, motorcycle, camper or RV. The lender will also RARELY, if ever, loan the full amount of what your vehicle is worth. The lender will consult a database, probably The Kelly Blue Book and determine what the resale value of your vehicle is.
Then, the lender will make a determination of how much they are willing to lend on your vehicle. How much the lender will lender is determined on several factors, but things they will take into account include your credit score, your debt-to-income ratio and the make, model, and mileage on your vehicle.
Once they run this information they will then proceed to tell you how much money they can lend you on your vehicle. They should also provide an interest rate as well as what your monthly payments are. In a lot of cases (but not all) auto title loan companies will give you two to three years to pay off your loan. Keep in mind that the longer you pay on your loan, even if the payments are low, the more you are going to pay overall. This is true of any loan–the longer it takes you to pay it off the greater the total cost of the loan is.
At TNL Car title loans our staff is professional and determined to help you get the answers you need quickly and effectively. We have compiled a lot of resources on our blog for you to educate yourself. Call us at at 888-539-2065 today to see how much money you qualify for on your vehicle. Or, fill out the application form on our website. Our staff will not pressure you into doing something you don’t want to do.