Pink Slip Loans in California
In Credit Repair of CreditGuru (September 21, 2009 11:15 pm)
Subprime Loans
A subprime loan is normally sought by individuals with relatively little credit history or persons with less than satisfactory credit.
One example of this type of loan is the car title loan (sometimes referred to as a pink slip loan). The auto title loan makes it possible for California borrowers to use the equity in their automobile as collateral for the loan.
In order to apply for this loan, you need to demonstrate proof of ownership. The title to your car is the proof required. In California, you may also find that some lenders will require proof of income and will run a credit check as well. However, a fair majority of title loan companies will not check your credit.
The amount that you can borrow will of course depend on the value of your vehicle. A percentage of the wholesale amount is generally the sum of the loan. Usually, lenders will offer between 25% and 50%. The reason the lender offers a percentage of wholesale is so he or she may recoup his or her costs should the automobile need to be repossessed.
Check The Value
However, that said, you still may wish to make an assessment yourself as to the car’s value before you approach a car title loan company in California. In order to establish value, consult The Kelly Blue Book (KBB) value found online. This resource has a database that lets you find your make, model and year. And there is also an option to add in any additional factors that could influence the value of your car. In most cases, the lenders will also be using this same resource to set a value for the loan..
So it is quite likely that the car title loan you get in San Francisco would be the same as the car title loan in Los Angeles or San Diego or any other city in California. This wholesale amount is often the same as you would receive in a trade-in. Once the wholesale or trade-in value is determined, then the tile loan company will decide how much of this value they will lend you..
As mentioned, in most cases the loan amount will vary between 25% to 50% of the value of the vehicle. Varying states have different laws for how loan companies may establish their terms. You should also be aware the interest rate charged on the loan will vary from lender to lender. Try to find a company that has a competitive interest rate and provides flexible repayment options. If you live in San Diego, it might pay to see what the car title lenders lenders are charging in places like Chula Vista or National City.
Conclusively, if your credit score is not great, a car title loan in California may be a nice option for you. It is the ideal short term financial solution when anyone with less than perfect credit requires emergency cash.
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A month ago, my son had a broken arm and our insurance policy did not cover all the bills so, we needed extra cash and my husband was thinking to sell our car. My sister told us about city loan. We applied online and got the money next morning AND without selling our car or even handing it over to them. It was a great solution, thanks to car loans and to my sister!
Comment by Angela — November 24, 2009 @ 6:24 am