California Auto Collateral Loans

Auto collateral loans are a form of secured debt. A secured loan is one in which the borrower puts up some form of collateral, in this case a vehicle title, to protect the lender in case the borrower defaults. If the borrower defaults, the collateral is used to cover the debt. When a debt is secured, it typically carries a lower interest rate than one that is unsecured.

Auto Collateral Loans for Borrowers with Bad Credit in California

Borrowers who need cash quickly but have bad credit cannot typically get unsecured credit because their credit history makes them a bad risk for lenders. These borrowers have already demonstrated a pattern of not repaying debts in a timely fashion. A clear auto title to use as collateral can offset the risk of lending to borrowers with bad credit. If the borrower fails to make payments according to the pre-determined repayment schedule, the lender can then take the auto title to cover the debt.

To qualify for an auto title loan, a borrower must own the car used as collateral, and the car must be paid off or nearly paid off. Most lenders will only lend up to a certain percentage of the car's wholesale value to protect themselves should the car lose value over the term of the agreement.

Those looking for an auto collateral loan should contact Wilshire Consumer Credit. Operating in Arizona, South Carolina, California, Oregon, and New Mexico, this lender offers borrowers flexible repayment options, competitive interest rates, quick approval and quick cash payouts.