Car Title Loan Rates in California: What Are the Facts?

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If you are looking to get a car title loan in California it is important you know the basic facts about what title loans are, how they work. the laws concerning them, and more. Read below to find out more.



About Title Loans

What are title loans? A title loan is a loan where the borrower uses their vehicle as collateral to secure a loan. Title loans are commonly called pink slip loans, auto title loans, or car title loansThe borrower transfers the title under the lender’s name for the lender to hold until the loan is paid off. While the borrower pays off the loan, the borrower can keep the car and continue to drive it as their own. However, if the borrower defaults on the loan, or is unable to pay off the loan, then the title will remain under the lender’s name, which means the lender now owns the car.


Why Do People Use Title Loans?

There are various reasons why people choose to apply for a title loan. Here are just a few:

  • The loan approval process is quick and easy
  • You can still get a loan even if you have bad credit
  • You can get the loan as fast as the next business day, or even the same day
  • You get to keep using your car
  • Flexible payment plans
  • You don’t need much paperwork


State Laws Concerning Title Loans


First, laws concerning lending and borrowing vary from state to state and borrowers should be aware of their local state laws and what pertains to their circumstance. In some states, car title loans legal whereas in other states they are not. In the state of California, car title loans are part of an industry that is highly regulated by lawmakers to protect consumers and borrowers. There is a recognition that businesses such as payday loans and car title loans are often resources to the consumer who otherwise have no other help and so strict regulation and laws are necessary to prevent exploitation of the poor.


Car Title Loan Rates in California

In the state of California, usury laws concerning borrowing and lending have changed over the years. Most recently, a bill was passed to keep a cap on the interest rates at 36%, specifically for loan amounts of $2500-$10000. Previously, there was no interest rate cap on loans of this amount.

So what does this mean for you? It means that if you intend to take a car title loan, your interest rate cannot exceed 36%. The good news is that with a car title loan, you’ll still be able to get a large amount of cash in very little time. TNL Car Title Loans has a loan approval process that is under 15 minutes, and anyone can get started by calling in today at 888-663-7074 or by filling out our 5 minute online form.





How Do Title Loans Work?


1.  First, apply online or call us at 888-663-7074. Right away, a loan officer will help you determine if your car is eligible for your loan and will tell you your loan amount.

2.. Once approved for the loan, you will need to turn in the appropriate paperwork and documents required in order to process your loan. This includes:

  • a copy of your ID or driver’s license
  • proof of income of at least $1500 a month or pay stubs
  • proof of insurance and registration for your vehicle
  • Your car title or pink slip


Your loan officer will also discuss and schedule a repayment plan to your fitting and help you decide how flexible your term is. You can pay off your loan as early as you’d like with no prepayment penalties. We encourage our customers to take this route in order to save money and avoid interest payments.

3. Lastly, you can choose how you will receive your loan. The options include check or deposit into your bank account. You can also access your loan in any MoneyGram location located in retailers nationwide.

To get started on your title loan, give TNL Car Title Loans a call at 888-663-7074 or apply online with our quick 5 minute form here.


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