Things to Keep in Mind When You Apply for Online Car Title Loans in Orange County


If you need money in a hurry, there are a few online options that you could consider. One of those is the title loan, which essentially means that you put your vehicle up as collateral. This is a very easy loan construction and they are available to people with bad credit. As such, a lot of people apply for the first loan they come across but you should actually do a bit of research before you apply for one.

What Are Title Loans?


Title loans are short term, high interest loans. If you are unable to repay it, the lender will be able to repossess your car and sell it to have their money returned. This is why you need to think carefully about whether or not you want to apply for one.

Do You Qualify?

When you start looking for car title loans in Orange County, you will find that they have very few application criteria. Your credit score is not of influence, for instance. The few things that most lenders want to see are:

  • That you own a clear title on a vehicle.
  • That you are over 18 (21 in some states).
  • That you are employed.
  • That you are a legal and permanent resident of this country.
  • That you have a bank account with a direct deposit facility.

How Much Can I Borrow?

The amount you can borrow depends on the value of your vehicle. Most lenders will refer to the Kelley Blue Book or the NADA website to see what your car is worth. Usually, you will only be able to borrow up to 50% of the value of your car. Additionally, the maximum amount tends to be around $3,000 and the minimum amount will be $601. This is because higher interest rates can only be charged on amounts over $600. If you want to borrow $600 or less, you will usually have to pawn your vehicle instead.

Is it a Good Idea?

Car title loans have gotten a very bad reputation due to their high interest loan. Additionally, some lenders will demand in their terms and conditions that you have the loan for longer than one month, so that you have to pay a few interest payments before being able to pay the loan principal back. However, since so many people have gotten trapped in endless cycles of debt, the industry has been more stringently regulated.

Financial advisors will tell you that it is never a good idea to borrow money. This is because you will always pay back a lot more than what you actually borrowed. However, if a financial emergency has arisen, there is often no way other than borrowing for you to meet this emergency. If you then also have bad credit, or if you have good credit but you don’t have the time to go through a bank application procedure, then a car title loan may be the best option out there for you.

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