A title loan can provide quick emergency funds for borrowers with bad credit. It is usually given in exchange for a car title that you must put up as collateral. If you fail to make the necessary repayments on schedule, your car and its title become the property of the lender.
A title loan is similar to pawning an item, except that many lenders allow you to keep your vehicle while making repayments. Pawnbrokers, on the other hand, typically hold on to their collateral until the debt is repaid.
In order for you to qualify for a title loan, you must own the vehicle being used as collateral and the vehicle must be paid off or nearly paid off. You'll need to show proof of ownership as well as your ability to make repayments on the car loan before you qualify for the title loan.
The lenders you choose for your title loan may also consider your employment status and source of income when determining approval.
Getting a Title Loan with Bad Credit in California
Typically, people with bad credit choose a title loan. Most lenders will run a credit check prior to distributing any funds, but bad credit is usually not a deterrent for most lenders because the debt is secured by auto equity.
Title loans, California lenders offer are secured so the lender is not at risk of losing any money. By repossessing and selling your car the lender can cover the debt if you default on your loan payments. However, as most lenders report to all three credit bureaus, defaulting on a title loan can make a borrower's bad credit worse.
Wilshire Consumer Credit (WCC) is a reputable lender that offers title loans. California borrowers recommend WCC because the provide flexible term options and a quick turnaround. If you're looking for quick approval for a title loan, you can apply to them online or by phone.
You could be approved in minutes and have your cash in hand in as little as 48 hours. So apply now!