Do you need an installment loan and you have bad credit, but you’re not sure whether you can qualify for a loan? Be rest assured, a car title loan is what you need. You can get a loan within 24 hours. Your previous history is not really important. If you have had a foreclosure, a bankruptcy in the past or a car repossessed, you may still qualify for a car title loan from TFC Title Loan.
How does auto title loan work in California? The process of getting a loan with bad credit involves the following. Firstly, you must have a vehicle that qualifies for the right amount of money. Based on the California rules and regulations, the minimum loan amount is $2,510. This is the amount you can qualify for when getting a loan.
Why this price? This is because of the law of the state, except if you qualify for a low vehicle value program and you’re not able to issue a loan that’s less than that amount. Therefore, the major thing you’ll need when getting an installment loan with bad credit is to have a vehicle with enough equity in it. The loan to value ratio is normally between 60-80% for a car title loan in California. Therefore, you’ll need something like $4000-4500 of equity in your vehicle, but this will vary by vehicle.
Please understand that car title loan companies are in business to make money for the employees, owners and to help clients. Therefore, it’s not possible for a lender to loan you 100% of the value of your vehicle because if you don’t make your regular payments, the lender may end up repossessing your car. The other requirements to get an installment loan with bad credits involve the following: Although, this is not a complete list of requirements, but it serves as guidelines:
This is just the beginning of what you’ll need. When you contact TFC Title Loan, it’s ideal to have the VIN and mileage of your car available. This will help in getting a quick response from one of our customer representatives. They will also be able to tell you if you qualify for a loan. If you have any questions about auto title loan or installments loan, do not hesitate to contact us today.