California Buyers Increasingly Turning to Car Title Loans

07825e93d8724c79b7c85c0123ec6e47Over the past few years, car title loans have been increasingly in popularity as an emergency short term financing options. This has been especially true in California. There, the number of auto-title loans issues increased 140 percent over the last three years, from 38,148 to 91,505 between 2011 and 2013. Car title loans are an easy financing option for those who need money quickly or have blemishes on their credit score that make it difficult to get a personal loan from a bank. Here are the things that you need to know about getting a car title loan.

To get approved for a car title loan, you must be at least 18 years old and own a car that has no liens on the title. The car title must have you listed as the owner of the vehicle for you to use it to get a car title loan. The car title is the collateral for the loan, meaning if you don’t repay the loan as agreed, the lender has the right to keep the title, repossess the car, and sell it to get back the money owed to them.

Car title loans can be approved faster than traditional personal loans. Online car title lenders, such as the one found at www.titleloans-california.com, can generally give you a decision on your loan application and have the funds in your bank account in a matter of days. This fast turn around gives you the financial means to handle your financial emergency in a timely manner. Delays in handling a financial emergency can result in higher costs, increased stress, and other unpleasant consequences.

The amount of the loan you are offered will depend on the age and condition of your car. If your car is a newer model and is in good condition, you can get a larger loan because the loan amount is based on a percentage of the resale value of the vehicle. To ensure that you will be able to get the amount of money needed to handle the financial emergency, go online to a site such as Kelly Blue Book to see the approximate resale value of the car you intend to use for the car title loan.

Car title loans come with repayment terms as short as 30 days and as long as several years. Payments on the loans with longer terms are repaid in installments, generally deducted from the borrower’s bank account. Loans with shorter terms are due in full by the due date. If the borrower is unable to repay the full amount of the loan by the due date, lenders often provide an option for refinancing the loan or rolling the old loan into a new one. Know what repayment options are available before signing up for a car title loan.

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