Are you in need of some “fast cash?” If so, then you should strongly consider taking out a title loan.
Title loans are cash loans that are given by using your vehicle’s title as collateral. And, because your vehicle’s title acts as collateral, you don’t need great credit in order to qualify.
Instead, all you typically need, aside from ownership of a vehicle, is proof of income to show that you will be able to pay back the title loan. The more value in your vehicle, the more you can typically borrow.
To get your loan, you simply need to find a reputable lender in the Oakland area, gather all required documentation, and then fill out a loan application. In some cases, you may even be able to apply for and receive your loan funds online- all without leaving the comfort of your home!
Car Title Loans Oakland
While many states do not have laws in place to protect borrowers who take out title loans, California does. Fortunately for borrowers, these laws are all aimed at providing the borrower with the best and safest experience possible. So, if you’re taking out a title loan in the Oakland area, you already have the law on your side!
In the state of California, your title loan must be for at least $2,500. If a lender tries to offer you less than that, then you are not dealing with a reputable lender and should look elsewhere.
Furthermore, in California, your lender is required to inform you of all fines and fees related to your title loan, including interest fees, late payment fees if applicable, and processing fees. Having all the information upfront will ensure you know the exact terms of your loan and will also enable you to shop around to find the absolute best title loan lender to meet your needs.
Lenders that Work with You
Something else to appreciate about title loan lenders is that most of them are willing to work with you if you have trouble making your payments or if you need to make a late payment. Title loan lenders are used to dealing with and helping people with poor or no credit. And, as long as you keep open communication with them, you can typically work out alternate payment arrangements as needed.
For example, if you’re struggling to meet the original terms of the loan agreement, many title loan lenders offer refinancing, which enables you to renegotiate your loan terms. You may end up owing less overall, paying less interest, and even being able to borrow more money if needed.
Outside of refinancing, lenders will typically allow you to set up special payment arrangements as needed. The key is to stay in good touch with your lender and let them know what is going on anytime you cannot make a payment as agreed upon.
Rights after Repossession
If you fail to make your payments and to communicate with your lender to work out alternate arrangements, your lender does have the right to repossess your vehicle, just as any lender can maintain possession of your collateral should you fail to meet the loan terms.
Fortunately, though, title loan lenders are more flexible and easy to work with, even after repossession, than other types of lenders. Also, in California, they must follow certain laws after repossession.
For example, your lender must notify you 48 hours after repossession occurs. They must tell you where your vehicle is and the steps you need to take to get it back. You’ll typically have a full 60 days to get caught up on payments or work out other arrangements with the lender.
Should you fail to do so, the lender will need to notify you at least 15 days before they plan to sell or discard the vehicle. You can request a ten day extension, which serves as another chance to work out an agreement with your lender.
And, should your lender ultimately sell your vehicle for more than what you owe the lender, you will get a refund of the overage. However, most people who take out title loans and work closely with their lenders will never have to worry about repossession, even if they make a few late payments here and there.
Title Loan Tips
Now that you know all the facts, if you feel that a title loan is right for you, be sure to follow a few simple tips that should help you to have a more positive experience with title loans.
To begin with, never provide false information on your title loan application. Lying about your income, your address, or anything else can keep you from getting the loan you want. If you do get the loan and dishonesty is later discovered, your loan may be rendered invalid, or your lender may have the right to repossess your vehicle, especially if it is discovered that you lied about your ability to pay back the loan.
Also, never attempt to “skip out” on your loan. Some borrowers take out title loans with no intention of ever paying them back. They may even try to hide their vehicles or provide false information in an attempt to deceive the borrower. Not only is this illegal, but it’s a sure way to get your vehicle repossessed. And, in some cases, your deception may even entitle the borrower to keep your vehicle.
As another tip, don’t borrow more money than you need. Title loans are sometimes offered for as much as $10,000, but that money does have to be paid back with interest. So, as tempting as it may be to take more, only borrow what you need and what you can reasonably pay back within the time allotted by your title loan agreement.
A title loan can be a wonderful, helpful thing, providing you use it properly. You also need to find a reputable lender, maintain honesty and integrity, and do your best to meet the title loan terms and to communicate with your lender when you cannot. If you can do these simple things, your title loan experience can be a positive and incredibly helpful one.