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Published On: Fri, May 22nd, 2015

Car Title Loans in California Are Great Options for Those who Need Money Fast

A lot of people consider applying for title loans if they need money fast. If this is something that you are considering, you must study your options carefully. This will help you to get the best possible deal.

What Is a Car Title Loan?

Basically, it is a type of loan that is secured against your vehicle. If, for whatever reason, you cannot pay your loan back, then the lender can repossess your vehicle. This security means that borrowing you money is not as risky.

Car title loans are short term loans. They also have very high interest rates. Because of this, they are most popular among people who have no other options and who need money fast. Interest rates vary and can be well over 600%. The state of California has regulations in place to stop the interest rates from being too high, however.

It is very important to properly read the terms and conditions offered with your loan. Sometimes, you will have to make a number of interest payments before you are able to pay for the principal.

Applying for a Car Title Loan

Applying for car title loans in California is very easy and can generally be done online. You will, however, have to provide a number of pieces of documentation, including:

  • Proof that your vehicle’s title is clear and in your name.
  • Proof or age.
  • Proof of residency
  • Proof of employment.
  • Proof of having an active bank account.

Once you have provided this documentation, the lender will value your vehicle and determine how much they would be willing to lend you. Usually, no more than 50% of the value of the car will be borrowed to you and the maximum amount tends to be around $2,500.

In order to make sure you pay your loan back, title lenders will have a number of tools at their disposal. These include:

  • Keeping hold of your spare set of keys.
  • Installing a tracking device.
  • Installing a remote ignition disabler.
photo supplied/ bankruptcydocumentslibrary.com/

photo supplied/ bankruptcydocumentslibrary.com/

Once your loan period is up, you will need to make all payments due. If you are unable to do so, then you will have to take out a second title loan to pay back the first one. This is a worrying cycle of debt that you should try to avoid at all costs. Unfortunately, this is the difficult debt trap that many people find themselves in and it is for this reason that you must think so carefully before you do apply for any type of financial product.

Unfortunately, we live in an age where people with bad credit are demonized. Even those with good credit are not trusted and are scrutinized on every element of their lives before they are allowed any type of loan or other financial product. As a result, someone who needs money for a financial emergency, such as a gas repair bill or medical bill, will not have the option of turning to their bank, no matter what their financial status is. For these people, a car title loan is the only option.

Guest Author: Lolita Di

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  1. Woman's car repoed, sues lender over 371% APR - JustMoreInfo Blog says:

    […] Car Title Loans in California Are Great Options for Those who Need Money Fast Car title loans are short term loans. They also have very high interest rates. Because of this, they are most popular among people who have no other options and who need money fast. Interest rates vary and can be well over 600%. The state of California … Read more on The Global Dispatch […]

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