California is leading the way when it comes to changes in the financial service industry. Not only is it the largest state, but it’s also a hub for many short term lenders, banks and online installment loan companies. When it comes to short term lenders in California, payday loan companies still reign supreme. Even with that, there are dozens of car title loan companies that have headquarters in California. Some of these lenders choose to focus only on California applicants and some will work in other states. As we’ve documented throughout our site there are also many lenders that only take applications online. Some of these lenders have physical offices all over the state, but they only take online applications. The reasons for this are simple. It can be expensive to manage and operate retail locations. Rents are high and there is a good amount of expenses that come with managing a physical office. It often makes more sense to handle title loan applications online versus meeting someone in person. Let’s discuss why these changes are happening and where things may end up over the next few years.
California is home to many of the largest title loan companies
Here in California many borrowers aren’t familiar with how the title loan process works. In fact, some applicants that we speak with have no idea they can keep driving their vehicle after handing over the pink slip. They believe that once they hand over the car title, they lose all rights to keeping their car. We all know this is not correct. Some companies will try to install ignition locks or other devices onto the vehicle that disable the engine if there’s no payment. We know of a few auto title lenders in Los Angeles that do this. Thing is, they don’t receive much business, as most customers would rather apply with a company who let’s them drive their vehicle outright. Other borrowers, think it will take days or even weeks to get approved. Many people are used to applying for bank loans or mortgage notes that can take forever to process. With car title loans, you can often submit your application online and have cash in hand by that same day. Some don’t understand that it’s not important to have average or even good credit. The most important factors are having equity in your vehicle and the ability to pay off your loan. Some online title loan companies will also want to make sure you are currently employed. They will ensure you have direct deposit and an active checking account. These details are much the same as payday loans and cash advances, but other than that the process is different. The misconceptions that we note here will often lead California applicants to apply for car title loans in person. Don’t think you have nowhere to go when it comes to finding a vehicle equity lender in California. Our directory of online title loans features companies in California and all throughout the country!
More applicants apply for auto title loans on their mobile devices
Data shows that more and more borrowers are applying for title loans on mobile devices. These devices can include cell phones, smart phones and tablets. Over the past few years the amount of mobile applications has been passed by the desktop submits. We have no way of knowing how many people are still seeking car title loans in person but there are still quite a few shops that are open and seem busy. What’s likely happening here is that more consumers are being introduced to the possibility of getting cash. There are many blogs and sites(like this one) that detail the benefits and drawbacks of high interest loans. Remember, short lending companies don’t have to be the only option when someone needs fast money. Check with your local bank’s rates. Ask your employer for a payday advance or some other type of help. Always check to see if there are any benefits available from your state. California has many programs for people in need of financial assistance. Check out the many programs available to California residents by navigating to the Benefits.gov local section. Before the internet came along people didn’t know what to expect. Borrowers had to rely on the word of friends or what they’ve heard secondhand. We have no way of knowing if this trend will continue. California continues to be a hotbed for innovation and this will likely continue with the increase in fintech companies. Over the past 2-3 years many of these Silicon Valley startups have brought technology focused loans to the forefront. These firms have an online focus and are shaking up the industry. If the trend continues we can only expect more changes to come to lenders that fund online title loans. We will be sure to update this article every months. We expect to hear more about the financial and regulatory changes to the short term financing industry.