Best Car Title Loan Alternatives in California of July 2024

Last Update: September 25, 2023 Personal Loans by States and Cities

While taking an auto-title loan is quick and easy, there are better options than this one. Car title loans are expensive, with APRs averaging 300%. They approve of bad credit borrowers and often promote them as the only alternative to bad credit borrowers.

However, auto-title is cheaper than payday loans which average 400%. Nonetheless, borrowers must add their cars as collateral for this’ discount.The loan amount approved is less than the car’s value, usually 25% to 50. Car title loans are risky and can get you into a debt cycle. Between 6% and 11% of car title loan borrowers in California end up losing their cars. The average auto-title loan cycle time is 15 to 30 days.

Auto-title loan laws in California allow a maximum interest rate of 30% on loans under $2,500, with no limit on amounts exceeding $2,500. In addition, auto-title loan lenders shouldn’t compound interest amounts below $5,000. The law also permits lenders to charge 5% of the loan amount for loans under $2,500 or $50, whichever is less. Licensed lenders may charge borrowers $10 late payment fees after ten days and $15 after every negligence. Licensed car title loan lenders can repossess your motor vehicle if you default.

In California, there are alternative options for borrowers looking for short-term loans. ElitePersonalFinance has prepared a list of CA’s best car title alternatives, including bad credit personal loans, buy-now-pay-later services, loan apps, auto loans, and credit unions.

Best Car Title Loan Alternatives and Laws in California July 2024: Key Findings

Unsecured Personal Loans. Many only think they have bad credit and can’t get approved. Many can qualify for unsecured personal loans because they have not-so-bad credit and can post as proof of other things like income, DTI ratio, etc. Check out our marketplace for the best unsecured personal loans 2024.

Secured Personal Loans. You are mistaken if you think that secured personal and auto title loans are the same. Technically, auto title loans are a type of secured loan, but secured personal loans are capped at 35.99%, while auto title loans average at 300%. If you plan to post your car as collateral, do this on a secured loan. When you reserve your loan, you usually pay less than on auto title loans. Check out our marketplace for the best-secured loans 2024.

Buy Now Pay Later. These apps offer 0% APR and no credit check. You can use them to buy electronics, clothing, and furniture. You don’t need a high credit score or any collateral, which is great if you have less-than-perfect credit.

Auto Loans. Auto loans are much cheaper than car title loans because they offer lower interest rates than auto title loan companies. Here, you buy a car and secure it for the money. Check out our marketplace for the best auto loans if this is for you.

Loan Apps. These are excellent auto-title loan alternatives in California. Nonetheless, loan apps vary greatly in terms of fees, interest rates, and loan amounts. So make sure to compare them before committing. However, most loan apps only offer up to $500. If this is for you, check out our marketplace for the best loan apps 2024.

Credit Unions: Credit unions are much cheaper than auto title loan companies. The rates vary from 5.99% to 36%, depending on the credit union you choose, and the loan amount usually ranges from $1,000 to $100,000. If this is for you, check out our marketplace for the best auto loans from credit unions.

Best Car Title Alternatives and Laws in CA of July 2024

Lender:Loan Amount:APR:Terms:Min. Credit Score:Best For:
Supermoney$1,000 – $100,0000% – 36%12 – 84 months600Comparing various lenders
Capital OneFrom $4,0002.99% – 24.99%Up to 7 Years560Borrowers buying through Capital One Auto-Navigator
Wells Fargo$3,000 to $110,0003.99% – 19.99%24 – 75 months650Drivers who prefer an in-house experience
Bank of America$7,500 – $50,0005.19% – 6.19%60 monthsNot disclosedBank of America’s reward members
Truist$5,000 – $100,0004.89% – 13.01%Up to 84 monthsNot disclosedSolid credit score and good income
LendingTree$1,000 – $100,000From 2.96%Up to 96 months500Comparing different lenders
Consumers Credit Union$5,000 – $75,0004.94% – 21.24%Up to 84 months620Borrowers with fair to excellent credit
New Roads Auto Loans$6,000 – $38,00011.00% – 26.00%48 – 72 months0Preapprovals
Star One Credit UnionUp to 100% car financing4.69% – 81.29%Up to 84 monthsNot listedNo-fee car title alternative loans
CarvanaUp to $100,0004.39% -27.90%Up to 84 months450Really bad credit

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