California is leading the way regarding changes in the secured lending industry. Not only is it the largest state, but it’s also a hub for many personal loan lenders, banks, and online installment loan companies. Regarding short term lenders in California, payday loan companies are still on top. Even with that, dozens of companies with headquarters in California underwrite title loans online. Some of these lenders choose to focus only on in-state applicants and some will work in other states.
As we’ve documented throughout our site, many lenders only take applications online. Some lenders have physical offices all over the state, but they only take online applications. The reasons for this are simple. It’s often expensive to manage and operate retail locations. Rents are high, and many expenses come with managing a physical office. It often makes more sense to handle applications online versus meeting someone in person. Let’s discuss why these changes are happening and where things may end over the next few years.
What’s Required For Car Title Loans In California
Many borrowers aren’t familiar with how the application process works for online title loans. Some applicants we speak with do not know they can keep driving their vehicle after handing over the pink slip. They believe that once they hand over the vehicle title, they lose all rights to keeping their vehicle. We all know this is not correct. Some companies will try to install questionable ignition locks or other devices onto the vehicle that disables the engine if there’s no payment. We know of a few auto title lenders in Los Angeles that do this. They don’t receive much business, as most customers would rather apply with a company that lets them drive their vehicle outright.
Other borrowers think it will take days or weeks to get approved for online title loans. Many people apply for bank loans or mortgage notes that can take forever to process. With these loans, you can often submit your application online and have cash in hand by that same day. Some don’t understand that having average or even good credit is not important.
The most important factors are having equity in your vehicle and the ability to pay off your online title loan. Some online companies will also want to make sure you are employed. They will ensure you have direct deposit access with 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 will often lead California applicants to do nothing when they should be looking for the best place to get approved. Don’t think you have nowhere to go when finding a vehicle equity lender in California. Our directory page features information on online title loan companies in California and all throughout the country!
Title Loans in California – How To Apply
Data shows that more and more borrowers looking for auto title loans in San Diego and Los Angeles are applying on mobile devices. These devices can include cell phones, smartphones, and tablets. Over the past few years, the amount of mobile applications has passed the number submitted with a computer. We have no way of knowing how many people are still seeking car title loans in person, but a few shops are open and seem busy. What’s likely happening here is that more consumers can get fast cash online and many are also applying for a title loan refinance.
Many blogs and sites(like this one) 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 lender to see if there are any low rate title loan offers available. 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 help. Check out the many programs available to California residents.
Changes To Expect With California Car Title Loans
Before the internet came along, people didn’t know what to expect with car title loans in California. Borrowers had to rely on the word of friends or what they’d heard secondhand. We do not know if this trend will continue, but more people are open to using their car as collateral for a secured loan. CA is a hotbed for innovation and will likely continue with the increase in Fintech Companies. Over the past 2 to 3 years, many startups have brought technology-focused online title loans to the forefront, and that will lead to better payment terms and options for new loan offers. 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 vehicle equity loans. We will be sure to update this article every few months. We expect to hear more about the financial and regulatory changes for California companies.
Online title loan lenders in California are always changing how they do business!