Getting approved for a title loan in California has never been easier for anyone who owns a paid off vehicle. It used to take days to underwrite a title loan application, but now you can do almost everything online or over the phone and some loans can even be funded without an inspection!
We've streamlined the underwriting requirements and made applying online with California Title Loans easy. The application process has been cut in half, and you can now get approved for an online title loan of $2,500 or more in less than an hour!
Approval is a bit more complicated in larger cities like Long Beach or San Diego, as finding a local company that spells out the lending requirements for a secured loan can be challenging. At California Title Loans, we want you to understand what you're getting into before signing off with a lender. That's why we've detailed the current lending requirements below.
What Are The Current Title Loan Requirements
People think an excellent credit score is required for all types of personal loans. That's often the case with unsecured and bank loans, as your lender underwrites the loan based on your credit profile and FICO score. However, with a car title loan, your credit history is not nearly as important as the value of your vehicle. The equity in your car is the main requirement for any title loan, and you stand a decent chance of qualifying with a car worth $5,000 or more.
Other requirements include proof that you can repay your loan monthly according to the repayment terms. You need proof of income, which can be with payment stubs or a bank statement. You also need proof that the vehicle is insured and registered in CA. Some less common requirements are bringing the car in for an inspection so your lender can verify the vehicle's current condition. Sometimes, You will need 3-4 references from past lenders or friends and family.
These requirements are far less than what you'd expect from an unsecured lender, and ultimately, you can qualify with just a lien-free car title and proof of income. Any other requirements are less common, and you should be able to qualify for a $2,500 title loan with a vehicle that's title and year 2010 or newer.
How Much Can I Get With A Title Loan
Your car's title loan value depends on current lending requirements, vehicle condition, and resale value. You must first check the car's comparable sales price in CA to determine the funding amount. A 2015 Toyota Camry is around $13,000, while a 2009 Honda Civic LX is worth around $7,000. You can often borrow 50% or more of the car's total equity amount with those values. Of course, you can get more for a title loan on luxury cars and those with low mileage.
Loan amounts in California range from $2,500 to $25,000. As of 2024, the average funding amount is $3,500, with a 12 to 48-month repayment term. Some customers can qualify for lower amounts of around $2,500, and these loans require vehicles valued at $5,000 or more.
Additional Title Loan Requirements in California
A licensed lender can provide title loans in CA of over $2,500, and the requirements often vary among the different companies and their specific underwriting requirements and procedures. A title loan company will want to inspect your vehicle in person, which is generally required to verify the vehicle's value and current condition.
The inspection agent will check for other mechanical issues during the vehicle inspection, and they'll confirm the VIN and mileage. The inspection should take less than 45 minutes, and some companies will schedule the inspection and document signing simultaneously.
Some firms that provide loans online will want to ensure you have an active bank account. They want to know if you're employed and can make the monthly payments. Some lenders will even call your employer to verify that you work there!
How Are The Underwriting Requirements Different In California Versus Other States
The underwriting requirements for California title loans differ slightly from those of other states. The most significant requirement is owning the car outright, and CA currently caps most secured loan amounts at $10,000. A lender will also check your employment status and ability to repay the loan on time per state regulations. They may require additional security if there's more risk involved, especially if it's a company that pays off title loans. Another new requirement in California as of 2020 is that interest rates can be no greater than 36% for most title loans. These interest rate limits make it easier for customers to repay their loans, but they also reduce the amount of lenders willing to offer loans within the state. Simply put, there's a good amount of risk with title loans. With interest rate caps at 36% in California, lenders would rather steer their capital to other states that don't have these interest rate caps.
Lastly, some states outlaw all vehicle equity loans, while some have no requirements for loan amounts and interest rates. For instance, Colorado and New York have strict regulations that outlaw title loans. At the same time, other states, such as Washington and California, allow title loans but limit the interest rates a lender can charge.
Title Loans - What Documents Are Required
Another aspect of the qualifying process is determining the amount you can borrow and what additional documents may be required. Check out California's current title loan regulations and compare the rates and payoff terms.
While the main document required for title loans is the title itself, you must also prepare to hand over things like paystubs and your car's insurance information. Any lender will want to know the car is covered in case of emergency or theft, and you need to show documentation of full coverage. Also, have your vehicle registration forms and bank statements ready if required.
Most lenders in California will first determine how much you can get with collateral loans on a vehicle. Paying more than the minimum each month will save you money and should come with no fees or restrictions. Most car title loans are approved without problems, but there can be times when you don't get approved, especially if you have bad credit.
Contact California Title Loans anytime to learn more about what's required for a title loan! Call 855-339-1001 to see if your vehicle qualifies and to know about our other underwriting requirements!